A LEGAL APPRAISAL OF INTERNALLY GENERATED REVENUE IN NIGERIA AS A CATALYST TOWARDS ECONOMIC DEVELOPMENT

Abstract

This article examines the sources of internally generated revenue in Nigeria. It also examines
Constitutional provisions which empower states on revenue collection. The article reveals
inconsistencies between the relevant constitutional provisions and section 4 (1) of the Allocation
of Revenue (Federation Account, Etc.) Act, which provides that in addition to the allocation
made from the Federation Account to Local Government Councils, each state must distribute ten
percent of its internally generated revenue among the local government councils in the state.
Thus, each state government is expected to pay ten percent of its internally generated revenue to
local government councils in the state and not compel them to pay their internally generated
revenue into state accounts, giving them ten percent of it in return. The paper concludes that
internally generated revenue is the live wire of the government; therefore, the constitutional
provisions for Government Ministries, Departments, Agencies, at different levels should be well
followed, to ensure transparency and efficient economic developmental objectives.