Abstract: This broad study empirically evaluates the viability of Nigeria state governments independent of statutory allocations. The study was basically motivated by the persistent dependence of Nigeria State Governments on allocations from the Federation Account to the neglect of internally–generated revenues; this being so even with the current down–turn in the crude oil market, which is the main source of revenue to the federation account. The study employed the ex- post facto research design and used the regression model to determine the causal relationship between states internally–generated revenue and statutory allocations on the one hand, and states total expenditures and total revenues on the other hand, during the period 1999–2013. The results of the analysis show that, though generally, internally-generated revenues and statutory allocations have significant effects on the dependent variables (total expenditures and total revenues) their contributions to total expenditures and total revenues vary significantly. While internally–generated revenues contribute insignificantly to total expenditures and total revenues, statutory allocations contribute maximally to those dependent variables. This confirmed the dependency assumption which formed the theoretical framework of this study. The implication of this is that currently state governments cannot finance their fiscal operations without statutory allocations and/or external borrowings, thereby posing a threat to their future viability in view of the current down – ward trend in the prices of oil in the world oil marked upon which the Nigerian national budget is bench – marked. It is therefore, recommended that state governments should begin to direct more efforts toward effectively tapping the potentials of their internal sources of revenue as a safeguard against further fall in oil prices and hence, reduction in statutory allocations.
Covid-19 Following Up On The Immediate Economic Responseaakash malhotra
With india going under a complete lockdown for over a month now, industries and government needs to brace themselves in order to fight against the consequences of covid-19. Right from protecting jobs to supporting different sectors to minimise the impact, there are a lot of preparatory measures that are already under process.
Industrial production growth continues to remain tepid, thus necessitating the need for urgent redressal steps from the government in the form of expediting execution of approved projects and providing a competitive market for coal and mining sectors. Global headwinds have not receded fully, with growth in Euro Area expected to remain lackadaisical for few more quarters. Japan and China are passing through a phase of below potential growth too. Under this backdrop of subdued global growth, policymakers need to announce more policy actions like 'Make in India' initiative and flexible labour policy to help lift domestic growth to a higher trajectory.
In the current issue of Economy Matters, we cover the latest IMF’s World Economic Outlook and the issue of deflation facing many advanced economies in the Section on Global Trends. In Domestic Trends, we analyse the trends emanating out of the recent releases on IIP, Inflation, Monetary Policy and Trade. We also discuss the Corporate performance for Q2FY15 in this section. The Sectoral spotlight for this issue is on the MSME sector. In Focus of the Month, sectoral experts provide their insightful viewpoints on the topic ‘Coal: Challenges and Way Forward’.
Covid-19 Following Up On The Immediate Economic Responseaakash malhotra
With india going under a complete lockdown for over a month now, industries and government needs to brace themselves in order to fight against the consequences of covid-19. Right from protecting jobs to supporting different sectors to minimise the impact, there are a lot of preparatory measures that are already under process.
Industrial production growth continues to remain tepid, thus necessitating the need for urgent redressal steps from the government in the form of expediting execution of approved projects and providing a competitive market for coal and mining sectors. Global headwinds have not receded fully, with growth in Euro Area expected to remain lackadaisical for few more quarters. Japan and China are passing through a phase of below potential growth too. Under this backdrop of subdued global growth, policymakers need to announce more policy actions like 'Make in India' initiative and flexible labour policy to help lift domestic growth to a higher trajectory.
In the current issue of Economy Matters, we cover the latest IMF’s World Economic Outlook and the issue of deflation facing many advanced economies in the Section on Global Trends. In Domestic Trends, we analyse the trends emanating out of the recent releases on IIP, Inflation, Monetary Policy and Trade. We also discuss the Corporate performance for Q2FY15 in this section. The Sectoral spotlight for this issue is on the MSME sector. In Focus of the Month, sectoral experts provide their insightful viewpoints on the topic ‘Coal: Challenges and Way Forward’.
China paper hints at anti-Japan sanctions
BEIJING: The mouthpiece of China’s Communist Party warned on Monday that Japan’s economy could suffer for up to 20 years if Beijing chose to impose sanctions over an escalating territorial row.
http://pwc.to/1cpYR81
En octobre, les décideurs de partout dans le monde se sont réunis à Washington DC pour faire le bilan des perspectives économiques mondiales. Pour la première fois depuis 2010, le pronostic d’une reprise soutenue pour les économies développées devrait être positif.
This monthly briefing highlights that global manufacturing production has improved. Economic recovery is slowly strengthening in developed economies; and public fiscal stimulus programmes have been a determinant factor in economic growth in many developing countries.
For more information:
http://www.un.org/en/development/desa/policy/index.shtml
Mr. William McConnell evaluates the 2016 economic conditions, concluding that real growth is at a stall despite full employment. This white paper is part of a three part series. William McConnell will publish a white paper focused on the state of the construction industry next month, followed by the state of the surety industry in July, 2016.
Highlights
• Economic slump has bottomed out – expect slow recovery ahead
• 2009-10 growth forecasts will be revised upwards by most as the year progresses
• Expectations of global growth resurgence fuels commodities and crude prices
• Dollar dives, rupee surges to 47 - more trouble for exporters ahead
• Fuel price deregulation on the cards
• But all is not well – and overheated stock markets need to cool a bit
India: Kal, aaj aur kal
The numbers all seem to be looking up, the stock markets all seem to be rising once again, and cheer is back. There is spring in the air. One wonders what happened suddenly to make everything so nice. Anyhow, things as predicted are improving – largely because of heavy government interventions internationally. The lower interest rates in India are also starting to have their impact – this was all predicted, as interest rate reductions take some time to play out. But what is also predicted is that things will take a few months more to stabilise - we estimate growth for this financial year to be an unexciting 6.6%.
The Contribution of the Community in Supporting Schools in Dealing with Selec...paperpublications3
Abstract: In the South African School Act, the principles of partnership and co-operation are strongly emphasised. The community is given obligation by the Department of Education to support the school. This research is focused on the role of the community in supporting school in dealing with community-based problems such as drug abuse and poverty. The aims of this research were to determine ways and means in which the relationship between the community and the school could be promoted, to investigate how the community supports the school in dealing with community-based problems and to find ways and means by which the school can involve the community. In this research quantitative and qualitative techniques were used to collect the data. Questionnaires were completed by the learners from the four selected schools within Khakhu community, educators from the same four schools and community members. The findings revealed that drug abuse is a problem of both the community and the school. The research indicated that both the community and the school are ready to support each other.
Influence of Teachers’ Working Conditions on Curbing Examination Malpractices...paperpublications3
Abstract: Examination malpractice has become one of the most serious problem threatening our education system at all levels of learning irrespective of the institution status, level or location. For a long time examinations have witnessed increased and sophisticated incidents of examination malpractices. The problem is so alarming that all stakeholders in the educational systems all over the world have expressed serious concerns about it and need to find solution to it. The purpose of this study was to establish teachers’ working conditions influence on examination malpractices in KCSE examinations in Kisii County selected public secondary schools where the vice has been perennially exhibited. The researcher provided background information on the roles of teachers in examination process and how teacher factors as the independent variables can be manipulated to curb examination malpractices. This study reviewed relevant literature based on the variables guided by the research questions in line with their study objectives. The research analyzed the influence of teachers’ working conditions ,teachers’ roles in the examination process and the challenges teachers are faced with in curbing examination malpractices as dependent variables and illustrated in the conceptual framework and related literature provided. The target population constituted 15 Principals, 15 Deputy Principals, 15Examination Masters and 3 District Examination Officers. Saturated sampling was used to obtain the sample which is equal to the target population. Causal comparative Ex post facto research design was used. Questionnaires and interview schedules which were subjected to expert judgement and pilot tested for validity and reliability were used as research instruments. Statistical analysis was done to generate frequencies and percentages. The study recommended promoting teachers’ morale in terms of remuneration, better working conditions, provision of adequate and relevant educational/ teaching and learning facilities. The study also recommended full implementation of examination regulations and policies without partiality and further research on the role of other stakeholders in curbing examination malpractices.
China paper hints at anti-Japan sanctions
BEIJING: The mouthpiece of China’s Communist Party warned on Monday that Japan’s economy could suffer for up to 20 years if Beijing chose to impose sanctions over an escalating territorial row.
http://pwc.to/1cpYR81
En octobre, les décideurs de partout dans le monde se sont réunis à Washington DC pour faire le bilan des perspectives économiques mondiales. Pour la première fois depuis 2010, le pronostic d’une reprise soutenue pour les économies développées devrait être positif.
This monthly briefing highlights that global manufacturing production has improved. Economic recovery is slowly strengthening in developed economies; and public fiscal stimulus programmes have been a determinant factor in economic growth in many developing countries.
For more information:
http://www.un.org/en/development/desa/policy/index.shtml
Mr. William McConnell evaluates the 2016 economic conditions, concluding that real growth is at a stall despite full employment. This white paper is part of a three part series. William McConnell will publish a white paper focused on the state of the construction industry next month, followed by the state of the surety industry in July, 2016.
Highlights
• Economic slump has bottomed out – expect slow recovery ahead
• 2009-10 growth forecasts will be revised upwards by most as the year progresses
• Expectations of global growth resurgence fuels commodities and crude prices
• Dollar dives, rupee surges to 47 - more trouble for exporters ahead
• Fuel price deregulation on the cards
• But all is not well – and overheated stock markets need to cool a bit
India: Kal, aaj aur kal
The numbers all seem to be looking up, the stock markets all seem to be rising once again, and cheer is back. There is spring in the air. One wonders what happened suddenly to make everything so nice. Anyhow, things as predicted are improving – largely because of heavy government interventions internationally. The lower interest rates in India are also starting to have their impact – this was all predicted, as interest rate reductions take some time to play out. But what is also predicted is that things will take a few months more to stabilise - we estimate growth for this financial year to be an unexciting 6.6%.
The Contribution of the Community in Supporting Schools in Dealing with Selec...paperpublications3
Abstract: In the South African School Act, the principles of partnership and co-operation are strongly emphasised. The community is given obligation by the Department of Education to support the school. This research is focused on the role of the community in supporting school in dealing with community-based problems such as drug abuse and poverty. The aims of this research were to determine ways and means in which the relationship between the community and the school could be promoted, to investigate how the community supports the school in dealing with community-based problems and to find ways and means by which the school can involve the community. In this research quantitative and qualitative techniques were used to collect the data. Questionnaires were completed by the learners from the four selected schools within Khakhu community, educators from the same four schools and community members. The findings revealed that drug abuse is a problem of both the community and the school. The research indicated that both the community and the school are ready to support each other.
Influence of Teachers’ Working Conditions on Curbing Examination Malpractices...paperpublications3
Abstract: Examination malpractice has become one of the most serious problem threatening our education system at all levels of learning irrespective of the institution status, level or location. For a long time examinations have witnessed increased and sophisticated incidents of examination malpractices. The problem is so alarming that all stakeholders in the educational systems all over the world have expressed serious concerns about it and need to find solution to it. The purpose of this study was to establish teachers’ working conditions influence on examination malpractices in KCSE examinations in Kisii County selected public secondary schools where the vice has been perennially exhibited. The researcher provided background information on the roles of teachers in examination process and how teacher factors as the independent variables can be manipulated to curb examination malpractices. This study reviewed relevant literature based on the variables guided by the research questions in line with their study objectives. The research analyzed the influence of teachers’ working conditions ,teachers’ roles in the examination process and the challenges teachers are faced with in curbing examination malpractices as dependent variables and illustrated in the conceptual framework and related literature provided. The target population constituted 15 Principals, 15 Deputy Principals, 15Examination Masters and 3 District Examination Officers. Saturated sampling was used to obtain the sample which is equal to the target population. Causal comparative Ex post facto research design was used. Questionnaires and interview schedules which were subjected to expert judgement and pilot tested for validity and reliability were used as research instruments. Statistical analysis was done to generate frequencies and percentages. The study recommended promoting teachers’ morale in terms of remuneration, better working conditions, provision of adequate and relevant educational/ teaching and learning facilities. The study also recommended full implementation of examination regulations and policies without partiality and further research on the role of other stakeholders in curbing examination malpractices.
Abstract: St. Kuriakose Elias Chavara was a spiritual leader of the Syrian Catholics in the nineteenth century in Kerala, India. He had a great vision concerning the progress of the people and strived hard for the uplift of the whole society through various means. He was renounced as a sage entrepreneur who was a trend setter of public education, literary reforms, women emancipation and a harbinger of human dignity. He gave importance to the all-round development of people. This study aims describe the unique contributions of Kuriakose Elias Chavara to uphold human dignity in the nineteenth century and to identify the radical steps taken by him to imprint this ideology in the minds of people. The path showed by St. Chavara is followed by many and thus made a visible change in the society of Kerala all the way through the present. Consequently the study about the contributions of Chavara to uphold human dignity will be a useful and relevant base for many who dedicate their lives for ensuring the same.
Fanaticism and Barbarism: Synonyms of Dysfunctionality in Nigeria Todaypaperpublications3
Abstract: Civility is the language of decency, moderation, honesty, truthfulness, justice, equity, tolerance, mutual understanding, dialogue and mutual responsibility for the development of any society. There are other associated values and virtues, which are imbedded in the cultivation of civility in a polity such as patience and forgiveness. On the other hand, it renounces violence, coercion, destruction of life and property, as well as fanaticism and barbarism in every aspect of societal life. It denounces corruption and disorder. In fact, civility is antithetical to anarchy and lawlessness. But the reality of the Nigerian society manifests a total opposition to all the aforementioned virtues towards development and progress, especially with the current threats of Boko Haram and other political manipulations of the economy. It is in the light of this fact that the paper considers various acts of fanaticism and barbarism inflicted on the country, thus, challenging the sustainability of Nigeria as a nation.
The Role of Community Education in Reducing Child Sexual Abusepaperpublications3
Abstract: Individual education seems not enough to deal with community-based problems; community education by community members themselves is of paramount importance to deal with any community-based problem including child sexual abuse. Community education programmes designed by the community members can improve the quality of life of children and develop harmonious interpersonal relationships. Although communities differ from one another, some of the programmes used in other communities could be used in another community provided community participation prevails. Community participation provides the community with an opportunity to employ one programme after another till there would be an indication of the reduction of child sexual abuse. The evaluation of the programme will suggest the next programme to employ. The study adopted a participatory action research approach utilising a qualitative technique to collect the data. Interviews were conducted with educators, nurses, social workers, traditional leaders, church leaders, members of the civic organisation, policing staff and the Victim Empowerment Group. According to the responses of all target groups, community participation is imperative to reduce the incidence of child sexual abuse.
Relationship between Principals’ Leadership Styles and Teachers’ Indiscipline...paperpublications3
Abstract: This study aimed at determining the relationship between principals’ leadership styles and teachers’ indiscipline in Ebonyi State of Nigeria. Three research questions guided the study. Two sets of questionnaire, the Principals’ Leadership Style Descriptive Questionnaire (PLSDQ) and the Teachers’ Indiscipline Descriptive Questionnaire (TIDQ) were constructed by the researcher, and they were validated by three experts. Descriptive Survey design was adopted. A sample size of 120 teachers was used. Mean score and pearson product moment correlation were used to provide answers to the research questions. The findings indicated that there was a positive relationship between the principal leadership styles namely autocratic and democratic leadership style with teachers’ indiscipline. This relationship was significant for teachers of different years of experience. Recommendations were finally made for an improvement.
Haptics is a Technology of adding the sensation of touch and feeling to the Computers.Haptic Technology or Haptics is a tactile feedback technology which takes the advantage of the sense of touch by applying force.
Abstract: This essay focuses upon the relation between father and children; school and the children; husband and wife; the owner and the factory workers. Here it is shown how Victorian society had some social barriers between people and materialism collapses human relations. Since the novel written when European Industrialization was at its pinnacle it is studied here how education system, utilitarian philosophy became futile having no human concern. Lastly society and individual’s role has been closely studied.
Determining Satisfaction of the Workplace Environment of Diplomats and Consul...paperpublications3
Abstract: This Article focused on the challenges of workplace conflict affecting performance of diplomats and consular staff at the Kenyan Embassy in the United States of America. Statement of the problem is the under-performance of the diplomats and consular staff at the Kenyan Embassy in the United States of America. The general objective revolved around challenges of workplace conflict affecting performance of Kenyan diplomats and consular staff in the United States of America. An evaluation of the extent to which the diplomats are satisfied with their work related aspects, workplace issues are of great interest since most people spend a third of their adult lives at work. Work defines people in the most basic way, which is one reason retirement is so difficult for many people. Regarding the scope, the study covered the Embassy in Washington D.C. in the United States of America. In order to enhance the performance of diplomats and consular staff in the USA, their work place has to be re-looked at and be improved.
ESTABLISHING CHANNELS OF COMMUNICATION IN RESPECT OF GOVERNMENT POLICIES TO D...paperpublications3
Abstract: This study focused on the challenges of workplace conflict affecting performance of diplomats and consular staff at the Kenyan Embassy in the United States of America. Statement of the problem is the under-performance of the diplomats and consular staff at the Kenyan Embassy in the United States of America. The general objective revolved around challenges of workplace conflict affecting performance of Kenyan diplomats and consular staff in the United States of America. An evaluation of the extent to which the diplomats are satisfied with the communication channels that are being used to disseminate Government policies to them. Regarding the scope, the study covered the Embassy in Washington D.C. in the United States of America. In order to enhance the performance of diplomats and consular staff in the USA, Communication channels must be improved in line with recommendations given.
NFC stands for Near Field Communication.
NFC is an extension of Radio Frequency IDentifier popularly known as RFID.
NFC is a short range high frequency wireless communication technology.
NFC was founded in the year 2004 by NOKIA, SONY and PHILIPS.
Effectiveness of Aggregate Determinants of Deficit Financing on Capital Forma...YogeshIJTSRD
In Nigeria, despite the huge expansion of public expenditure based on the budget deficit status over the years, the expected level of economic growth as a result capital formation has not been achieved and it is against this backdrop, that this study investigated the effectiveness of aggregate deficit financing on capital formation in Nigeria for the period 1981 2019 with the help of the ARDL model of estimation. Based on the issues covered in the literature review, empirical investigations were carried out on the effect of deficit financing on capital formation in Nigeria. Results showed that External Debt Stock LNEXDBT had a positive relationship with GCF GDP in the current year, 1st and 2nd lags but statistically insignificant in the long run, Domestic Debt Stock LNDMDBT had a negative relationship with GCF GDP in the current year, 1st and 2ndyear lags and long run, Aggregate Gross Savings LNADBTS had a positive significant relationship with GCF GDP in the current year and in the long run, Aggregate Debt Service LNADBTS had a positive relationship with GCF GDP in the current year and in the long run while Total external reserves had a negative relationship with GCF GDP in the current year and in the long run. Based on the findings, the study recommended that the Government should demonstrate a high sense of transparency in its monetary and fiscal operations to curb high prevalence of external and domestic borrowing, improved gross savings to reduce the incidence of inflation which will translate to economic prosperity. Justin. C. Alugbuo | Emeka Eze "Effectiveness of Aggregate Determinants of Deficit Financing on Capital Formation in Nigeria: An Approach Based on the ARDL Model" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-3 , April 2021, URL: https://www.ijtsrd.com/papers/ijtsrd39820.pdf Paper URL: https://www.ijtsrd.com/economics/market-economy/39820/effectiveness-of-aggregate-determinants-of-deficit-financing-on-capital-formation-in-nigeria-an-approach-based-on-the-ardl-model/justin-c-alugbuo
Government Expenditure and Economic Growth Nexus: Empirical Evidence from Nig...iosrjce
This study has examined the impact of public expenditure on economic growth in Nigeria using time
series data for the period 1970-2012. Secondary data were sourced from the CBN, NBS, journals, text books
etc. The adopted model was fitted with three variables: real GDP, capital and recurrent expenditure. The tools
of analysis were the ADF unit root test and ordinary least square multiple regression accompanied by pairwise
Granger causality test. The major objective of this study is to analyse the impact as well as direction of
causality between the fiscal variables and economic growth. All the variables included in the model are
stationary at level. Empirical findings from the study show that there is positive and insignificant relationship
between capital expenditure and economic growth while recurrent expenditure had a significant positive impact
on economic growth. Also, Granger causality test demonstrates a unidirectional causality running from the
fiscal variables to economic growth in validation of the Keynesian theory. Consequently, the study
recommended more allocation of resources for recurrent purposes as well; government should establish the
body that will monitor contract awarding process of capital projects closely, to guard against over estimation of
project cost and stealing of public funds.
The Impact of Agricultural and Industrial Sectors on Economic Development in ...iosrjce
This study aimed at investigating the impact of the agricultural and industrial sector on the overall
economic development of the Nigeria using secondary data from 1981 – 2012. A multiple regression approach
was used for the estimation. To determine the stability of the time series data used in the study, Augmented
Dickey–Fuller (ADF) and Philips–Perron (pp) unit root tests were adopted. The empirical results show
cointegration relations among Real GDP per capita (RGDPP), Agricultural contribution to RGDPP (ARG),
Industrial contribution to RGDPP (IND), Interest rate (INT) and Inflation rate (IFL) in the period under
investigation. Agricultural and industrial contributions to RGDPP are significant variables explaining
economic development in Nigeria. The overall result of the analysis indicates that these sectors have significant
positive effect on economic development of Nigeria both in the short-run and in the long-run. This research
therefore suggest that there is need for government and the private investors to focus their attention on these
sectors to boost the economy of the nation and efforts must be made to diversified the economy and focus should
be shifted away from export of crude oil only and more effort should be concentrated on agricultural and
industrial development. This would translate to meaningful development in these sectors which will trickle down
to create employment opportunities, enhance productivity and increase agricultural production for exports.
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
This study evaluates the role of capital accumulation on labour productivity growth in Nigeria. Endogenous growth and efficiency wage theories are employed in explaining the determinants of labour productivity. The ordinary least squares method of estimation employed to evaluate the effect of capital accumulation on labour productivity and employment generation in Nigeria over the time frame of 1970-2014. The findings of this study include: education expenditure and capital formation’s impact on labour productivity growth is time dependent; health expenditure positively impacts labour productivity growth; compensation to employee negatively impacts productivity growth in Nigeria.
Government Capital Expenditure and Manufacturing Sector Output in Nigeriaijtsrd
The study explored the effect of government capital expenditure on manufacturing sector output in Nigeria using time series data from 1981 to 2018. The manufacturing sector output taken as the total volume of inflation adjusted value of output produced by all the manufacturing industries was the dependent variable. The government capital expenditure was disaggregated into four functional expenses as capital expenditures on the road, health, communication, and power electricity . The annual time series data employed were analysed for unit roots using the augmented Dickey Fuller ADF , and regression techniques based on the Autoregressive Distributive Lag ARDL to determine the relationships. The findings revealed that capital expenditure on road infrastructure has a short run positive significant effect on manufacturing sector output, but an insignificant adverse impact on manufacturing sector output in Nigeria capital expenditure on health has significant impacts on the manufacturing sector output in Nigeria driving at negative in the short run and then positive in the long run capital expenditure on telecommunication has a significant positive impact on manufacturing sector output in Nigeria both in the long run and short run whereas capital expenditure on the power supply has an insignificant negative effect in long and short periods. The study hence recommended increased expenditure on road, health, electricity and telecommunication to boost the manufacturing sector propensity for growth and productivity. Okpala, Osita Victor "Government Capital Expenditure and Manufacturing Sector Output in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-3 , April 2022, URL: https://www.ijtsrd.com/papers/ijtsrd49683.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/49683/government-capital-expenditure-and-manufacturing-sector-output-in-nigeria/okpala-osita-victor
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
GIÁO ÁN DẠY THÊM (KẾ HOẠCH BÀI BUỔI 2) - TIẾNG ANH 8 GLOBAL SUCCESS (2 CỘT) N...
Viability of Nigeria State Governments Independent of Statutory Allocations: Empirical Evidence (1999-2013)
1. ISSN 2349-7831
International Journal of Recent Research in Social Sciences and Humanities (IJRRSSH)
Vol. 2, Issue 3, pp: (131-145), Month: July 2015 - September 2015, Available at: www.paperpublications.org
Page | 131
Paper Publications
Viability of Nigeria State Governments
Independent of Statutory Allocations:
Empirical Evidence (1999-2013)
1
Dr. Chukwu, U.C, 2
Mr. Aneke, B.O
1
Lecturer, 2
Postgraduate student 1, 2
Department of Accountancy, Ebonyi State University, Abakaliki, Nigeria
Abstract: This broad study empirically evaluates the viability of Nigeria state governments independent of
statutory allocations. The study was basically motivated by the persistent dependence of Nigeria State
Governments on allocations from the Federation Account to the neglect of internally–generated revenues; this
being so even with the current down–turn in the crude oil market, which is the main source of revenue to the
federation account. The study employed the ex- post facto research design and used the regression model to
determine the causal relationship between states internally–generated revenue and statutory allocations on the one
hand, and states total expenditures and total revenues on the other hand, during the period 1999–2013. The results
of the analysis show that, though generally, internally-generated revenues and statutory allocations have
significant effects on the dependent variables (total expenditures and total revenues) their contributions to total
expenditures and total revenues vary significantly. While internally–generated revenues contribute insignificantly
to total expenditures and total revenues, statutory allocations contribute maximally to those dependent variables.
This confirmed the dependency assumption which formed the theoretical framework of this study. The implication
of this is that currently state governments cannot finance their fiscal operations without statutory allocations
and/or external borrowings, thereby posing a threat to their future viability in view of the current down – ward
trend in the prices of oil in the world oil marked upon which the Nigerian national budget is bench – marked. It is
therefore, recommended that state governments should begin to direct more efforts toward effectively tapping the
potentials of their internal sources of revenue as a safeguard against further fall in oil prices and hence, reduction
in statutory allocations.
Keywords: State government finances, statutory allocations, Federation account, internally generated revenue,
Government expenditures.
1. INTRODUCTION
Nigeria operates a federal system of government with three tiers- Federal, States and Local governments. These three
levels of administration have powers and jurisdictions assigned to them by the Federal Constitution. In recognition of
these powers and jurisdictions, the Constitution makes provisions for the collection and distribution of public revenue
among the various levels of government. In specific terms, section 162 of the Constitution, among other things, empowers
the president to table before the National Assembly, on the advice of the Revenue Mobilization, Allocation and Fiscal
Commission, proposals for revenue allocation to the three tiers of government. Thus, every month, any amount standing
to the credit of the said Federation Account is distributed to the three levels of government based on pre-determined
criteria (or formula).
The foregoing constitutional provisions have far-reaching implications for the viability of various tiers of government in
Nigeria.
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Prior to the oil boom era in the early 1970s, revenue accrued to the Federation Account from various other sources, apart
from oil, majorly from agricultural products such as palm-oil/kernel, cocoa, groundnut, rubber, cotton, hides and skin, to
mention but a few. However, following the oil-boom all these sources of revenue were neglected such that today Nigeria
derives close to 90% of her revenue from oil exports, being a major member of the Organization of Petroleum Exporting
Countries (OPEC).
Table 1 below (State government Finances, 1999-2013), shows actual figures of States total revenue (TR), statutory
allocations (SA), internally-generated revenue (IGR) and total expenditures (TE) for the period, 1999 to 2013.The
relationships among these variables are presented in tables 2 and 3- Statutory allocations and internally-generated revenue
as percent of total expenditure and States Internally-generated revenue and statutory allocations as percent of total revenue
,respectively.
Table 1: State governments finances (1999 -2013)
Year TR (# bn) SA (# bn) IGR (# bn) TE (# bn)
1999 169.0 103.7 34.1 167.9
2000 359.1 251.6 37.8 359.7
2001 573.5 404.1 59.4 597.0
2002 669.8 388.3 89.6 724.5
2003 855.0 535.2 118.8 921.2
2004 1113.9 777.2 134.2 1125.1
2005 1419.6 921.0 122.7 1243.2
2006 1543.8 1016.1 125.2 1586.8
2007 2065.4 1109.3 305.7 2116.1
2008 2934.8 1694.0 441.1 3021.6
2009 2590.7 973.8 461.2 2776.9
2010 3162.5 1353.7 757.9 3266.2
2011 3410.1 1786.3 509.3 3542.0
2012 3572.5 1857.0 548.1 3844.9
2013 3948.6 2082.3 624.4 4156.3
Source: CBN Annual Reports, various Issues
From table 1, it can be observed that, for most of the period, total expenditure of Nigeria State governments were
considerably higher than their corresponding revenue and, on some periods double the combination of their total statutory
allocations and internally-generated revenue. Thus, on many occasion, States fiscal operations are in deficits.
2. THE PROBLEM
Tables 2 and 3 below show that following the discovering of crude oil in commercial quantities State governments in
Nigeria have persistently depended on federal monthly stipends for funding of their fiscal operations (recurrent as well as
capital expenditures). For instance, CBN Annual reports indicate that between 1999 and 2013 the percentage of IGR
(internally – generated revenue) to overall expenditures of State governments in the country ranges between 7.9% and
23.2% while the percentage of Statutory Allocations to Total Expenditures range from 35.1 to 74.1 percent within the
same period (table 2).
In the same direction, the percentage of Internally generated Revenue to Total Revenue range from 8.1 percent to 23.9
percent while the percentage of Statutory Allocations to Total Revenue has a range of 37.6%-70.5% ( table 3).
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Table 2: Statutory Allocations & Internally Generated Revenues as percent of Total Expenditure
Year TE (# billion) SA as % of TE IGR as % of TE
1999 167.9 61.8 20.3
2000 359.7 69.9 10.5
2001 597.0 67.7 10.0
2002 724.5 53.6 12.4
2003 921.2 58.1 12.9
2004 1125.1 69.1 11.9
2005 1243.2 74.1 9.9
2006 1586.8 64.0 7.9
2007 2116.1 52.4 14.4
2008 3021.6 56.1 14.6
2009 2776.9 35.1 16.6
2010 3266.2 41.4 23.2
2011 3542.0 52.4 14.4
2012 3844.9 48.3 14.3
2013 4156.3 50.1 15.0
Source: Authors‘ compilations, 2015
The implication of the foregoing is that without statutory allocations and external loans State governments in Nigeria
cannot finance their operations. This is regrettably so even when most States in Nigeria are endowed with enormous
natural resources (Agricultural, minerals, etc) which if well tapped could significantly reduce their prevailing over-
dependence on federal allocations and external loans.
Of particular concern is the current down-turn in the global oil market. From late 2014 to early part of this year (2015)
official reports indicate that the price of oil had fallen below $70 per barrel as against the previous price of over $100.
This is expected to have far-reaching implications on federal and hence, state governments‘ revenue profiles as
evidenced from a recent media report indicating that the fall in oil prices has reduced government revenue by 25%.
Table 3: States Internally Generated Revenue & Statutory Allocations as percent of Total Revenue
Year TR (# billion) IGR as % of TR SA as % of TR
1999 169.0 20.2 61.4
2000 359.1 10.5 70.1
2001 573.5 10.4 70.5
2002 669.8 13.4 58.0
2003 855.0 13.9 62.6
2004 1113.9 12.0 69.8
2005 1419.6 8.6 64.9
2006 1543.8 8.1 65.8
2007 2065.4 14.8 53.7
2008 2934.8 15.0 57.7
2009 2590.7 17.8 37.6
2010 3162.5 23.9 43.3
2011 3410.1 14.9 52.4
2012 3572.5 15.3 52.0
2013 3948.6 15.8 52.7
Source: Authors‘ compilations, 2015
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The situation thus, raises concern over the long-run sustainability of sufficient statutory allocations to the lower tiers of
government in Nigeria. This suggests a need for a determination of the desirable levels of internally generated revenue
and statutory allocations necessary for effective and sustainable financing of State Governments‘ fiscal operations, with a
view to providing answers to the following questions:
-What is the effect of internally-generated revenue on total expenditures of State Governments in Nigeria?
-What is the contribution of statutory allocations to total expenditures of State governments in Nigeria?
-To what extent does internally-generated revenue contribute to the total revenues of State governments in Nigeria?
-What is the effect of statutory allocations on the total revenue of State governments in Nigeria?
3. OBJECTIVES OF THE STUDY
This study seeks to evaluate the viability of Nigeria State governments independent of statutory allocations from the
federation accounts. In particular, we evaluate the causal relationships between States Internally-Generated Revenue and
Statutory Allocations on the one hand, and States Total Expenditures and Total Revenues, on the other hand for the period
1999 to2013. The period 1999-2013 was selected as the period of investigation so as to cover the period during which
Nigeria had the longest period of democratic governance. The beginning of the investigation period of 1999 was preferred
as that was the year the present Constitution of Nigeria, in which the current revenue allocation formula is enshrined came
into effect while the end of the investigation year of 2013 was the year up to which data were fully available. Specifically,
we seek to:
- determine the effect of Internally – Generated Revenue on Total Expenditures of State governments in Nigeria;
- evaluate the contribution of Statutory Allocations to the Total Expenditures of State governments in Nigeria;
- Determine to what extent Internally-generated Revenue contributes to the Total Revenue of State governments in
Nigeria.
- Evaluate the effect of Statutory Allocations on Total Revenue of State governments in Nigeria.
4. HYPOTHESES
Based on the foregoing specified objectives the following null hypotheses are tested:
1 Ho: Internally- generated Revenue has no significant effect on Total Expenditures of State Governments in Nigeria.
2. Ho: Statutory allocations have no significant effect on total expenditures of State governments in Nigeria.
3. Ho: Internally generated revenue has no significant effect on total revenue of State governments in Nigeria.
4. Ho: Statutory allocations have no significant effect on total revenue of State governments in Nigeria.
5. LITERATURE REVIEW
Conceptual Framework:
Section 162(10) of the Nigerian Constitution of 1999 defines revenue as:
―any income or return accruing to or derived by the Government – (federal, States and Local Governments from any
source and includes – any receipt however described, arising from the operation of any law, any return, however
described, arising from or in respect of any property held by the Government of the federation; and any return by way of
interest on loans and dividends in respect of shares or interest held by the government of the federation in any company
or statutory body”.
The section further requires the Federal Government to maintain a
‗special account‘ to be known as ―The Federation Account‖ into which ―all revenues collected by the Government of the
federation except the proceeds from the personal income tax of the personnel of the armed forces of the federation, the
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Nigerian Police Force, the Ministry or department of government charged with responsibility for Foreign Affairs and the
residents of the Federal Capital Territory, Abuja shall be paid..”
These legal provisions seem to have provided legal backing for the rather injurious over-dependence of lower levels of
government on statutory allocations to the detriment of other sources of revenue available in their areas of jurisdiction.
Oseni (2013) reports that prior to the local government reforms of 1978, the generation of internal sources of revenue
were at their maximum and that local governments (and states) responsibilities were effectively carried out with or
without help from the central authority. However, when the 1978 reforms were introduced internal revenue generation as
a major means of financing local (and state) governments was abandoned in preference to the revenue from the federal
statutory allocations. This, according to Atakpa, Ocheni and Nwankwo (2012), was principally identified as the bane of
internal revenue generation at local (and States) levels of government. They concluded that self-reliance cannot be
actualized by States and Local Governments unless efforts are intensified to fully tap their internal sources of revenue.
Ekpo (2003) sees fiscal federalism as a system of resolving the relations arising from the political decentralization of the
public sector functions and responsibilities. He sums up the concept of federalism thus:
―The term deals with the allocation of resources among the three tiers and units of government, and institutions for the
discharge of responsibilities assigned to each jurisdictional authority. The nature and well fashioned fiscal relations in
any federal system are crucial to the continual existence of such systems. One of the cardinal principles of federalism is
that no level of government is subordinate to one another, though there must be a central government for this
arrangement”.
Empirical Review:
Aigbepue and Ainabor (2011) carried out a study on the issues and challenges of Nigeria fiscal federalism. Adopting
content analysis as their research method, they described federalism as ―the internalization of the administrative system
designed to cope with size, difference and peculiarities of the regions or state and/or ethnic groups‖. They argue that as a
federating state, Nigeria operates a revenue allocation system which takes care of all component parts of the federation.
Itemizing the objectives of fiscal relationship in a federation as ranging from ensuring correspondence between sub –
national expenditure responsibilities to ensuring consistency with nationally agreed income distribution goals, they argued
that a stable federation‘ can only be realized in an environment of equity, fairness and justice. That is, the evolution of an
equitable revenue formula that would be in the best interest of a stable Nigerian federation.
Oseni (2013) studied the contribution of internally generated revenue to state development in Nigeria. Adopting the
descriptive techniques of analysis he determine the summary statistics and trends of secondary data relating to state
government finances for the years 2007 to 2011. It was found, among others that during the period covered by the study,
internally generated revenue of states represented less than 14% of their entire revenue with Lagos State posting the
highest ratio of IGR to total revenue of over thirty six percent. This was attributed to the engagement of tax consultants by
that State government in its revenue collection.
It was further reported that states having the 13% derivation from petroleum production, with the exception of Rivers and
Edo, have low internally generated revenue in relation to overall revenue. This buttresses the general notion that without
statutory allocations several states cannot discharge their statutory responsibilities. However, whether it is sound
economic reasoning for states to perpetually depend on federal allocations for financing their fiscal operations is a subject
for empirical evaluation.
Agba, Ocheni and Okechukwu (2014) studied the challenges of financing Local Governments in Nigeria in a democratic
setting with a view to suggesting action plans for improvement. Using descriptive research method, the authors critically
reviewed various avenues for generating funds by local governments in Nigeria. They further explored the factors that
affect the viability of local government councils in the context of fiscal federalism as provided for in the 1999 constitution
of the Federal Republic of Nigeria.
The study found, among other things, that the major factors affecting local government finance in Nigeria include uneven
distribution of resources, lack of fiscal freedom, excessive reliance on federal allocations , creation of local councils that
are not viable as well as, ―dishonestly and corruption‖. The paper therefore, recommended that local governments should
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intensify efforts in developing avenues for generating funds so as to reduce over dependence on statutory allocations.
An examination of the relationship between government revenue and government expenditure in Nigeria – co integration
and causality approach, was a study carried out by Obioma and Ozughalu (2010). Using empirical data from 1970- 2007,
the study examined the interaction between government revenue and government expenditure in Nigeria. It employed the
‗Engel-Granger two- step co integration‘ techniques, the ‗Johnansen co integration’ method and the ‗Granger causality
test‘ within the ‗Error Correction Modeling (ECM)’ framework. Empirical findings from the study indicate, among other
things, that there is a long-run relationship between government revenue and government expenditure in Nigeria. The
findings thus, affirm the ‗revenue – spend hypothesis’ for Nigeria, implying that expenditures of government are
significantly affected by fluctuations in revenue fluctuations.
Theoretical Framework:
This study is anchored on the Dependency Theory developed in the late 1950s under the guidance of the Director of the
United Nations Economic commission for Latin America, Paul Prebisch (Ferraro, 1996). Prebisch‘s study suggests that
economic activity in the richer counties often lead to serious economic problems in the poorer countries. The poverty of
poor nations is often a by-product of over-reliance on the resources of richer nations
This situation can be likened to the prevailing fiscal federalism in Nigeria whereby States and Local governments depend
largely on the Federal government for revenue allocation for the financing of their fiscal operations. The allocation of the
taxing powers of the three tiers of government in Nigeria (Federal, States and Local governments) in which the central
government control most of the lucrative revenue sources, both in terms of the power to legislate and to administer and
collect (Odusola 2006, cilted in Chukwu , 2011) is in tandem with this theory. In Nigeria, the major tax which the states
share jurisdiction with the federal government is the personal income tax, though its legislation rests with the federal
government. While the federal government collects the personal income tax of the personnel of the armed forces, the
states collect those of other residents in their respective territories. This imbalance in revenue powers of different levels of
government leaves the lower levels of government perpetually dependent on the higher level of government for the
financing of their operations.
Oseni (2013) reports that before the 1976 Local Government reforms IGR generation were at there maximum levels. The
federal government provides little or no assistance to other tiers of government which were effectively discharging their
responsibilities. However, following the advent of statutory allocations the exploitation of internal revenue sources to
finance other tiers of government was severely neglected in preference to the revenue from the federation account. Thus
Atakpa, Ocheni and Nwakwo (2012) concluded that that was the genesis of the persistent dwindling fortunes of revenue
generation at the lower levels of government in Nigeria. It is their opinion that for States and Local governments to be
self-reliant they must look inwards to fully tap their internal sources of revenue. Local government councils partially gave
up most of their traditional revenue sources following the 1981 Revenue Act. Two factors were majorly responsible for
the partial neglect of internal sources of revenue by some local councils- the advent of the oil boom and a statement
credited to a one time Head of State of Nigeria to the effect that the major hindrance to the growth of the Nigerian
economy was ―executive capacity‖ rather than ―finance‖. Prior to that time internally –generated revenue constituted as
much as eighty five percent of total revenue of some local governments. Nevertheless, the need to raise internal revenue
from its dismal level became necessary following the decline in the oil revenue.
Currently there is nearly hundred percent reliance by states in Nigeria on statutory allocations to discharge basic
responsibilities. Without monthly statutory allocations from the federation account no basic operations can be performed.
With this monthly stipends assured, lower levels of government pay minimal attention towards growing their internal
resources which could have helped them to be independent.
Abiola and Asiweh (2012) also highlighted the contribution of Lagos State to government revenue generation in Nigeria.
They stated that Lagos State is among a few states in Nigeria that have left a land mark in terms of independence and use
internally generated revenue. Syndelle (2009) observed that in 2007, Lagos state achieved a gross domestic product of
N3.68 trillion, an equivalent of $29.028 billion making it the biggest contributor to the federation‘s gross domestic
product.
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6. RESEARCH DESIGN AND MODEL SPECIFICATION
This study adopts the ex-post facto research design, using time series data covering a period of fifteen years (1999-2013)
on Nigeria State governments‘ finances. The broad objective is to evaluate the respective contributions of States internally
– generated revenue and statutory allocations to total expenditures and total revenues during the study period. This is with
a view to determining the level of fiscal dependency of State governments in Nigeria on Federal Government allocations.
First, we ran a regression analysis of the relationship between States internally – generated revenues and their total
expenditures for the study period with a view to testing hypothesis one. Hypothesis two was tested by running the
regression of the relationship between states statutory allocations and their total expenditures.
We further established the contributions of internally- generally revenue to total revenue of State governments by
regressing the former (internally-generated revenue) against the later(total revenue) to satisfy research objective three;
while the fourth objective of the study was satisfied by regressing total States statutory allocations against total revenue of
States.
Thus, the relationships between the dependent variables (State governments‘ real expenditures and their real total
revenues) and the explanatory variables (States real internally – generated revenues and their real statutory allocations)
were determined by analyzing the following basic equations, using the Granger causality test (Obioma et al, 2010):
RSGTEt = f(αo + αi + RSIGRt + μ1) (i)
RSGTEt = f(αo + αi + RSSAt + μ2) (ii)
RSGTRt = f(αo + αi + RSIGRt + μ1) (iii)
RSGTRt = f(αo + αi + RSSAt + μ2) (iv) where:
RSGTE = Real State Governments expenditures
RSIGR = Real States internally- generally revenue
RSSA = Real States Statutory allocations and
RSGTR = Real State governments total revenue
αo, αi, are parameters to be estimated
u1 and u2 are stochastic error terms.
Data on the variables (i.e. RSGE, RSIGR, RSSA and RSGTR) were collected from the Central Bank of Nigeria Annual
Reports (1999 – 2013).
7. ANALYTICAL TECHNIQUES
The relationships amongst internally – generated revenue, statutory allocations, expenditures and total revenues of state
governments in Nigeria constitute the basis of empirical analysis. The hypotheses were tested using regression analysis
and the F- values were obtained at the 95% level of significance to assess the linearity assumptions. The adjusted
coefficients of determination (R2
) were used to determine whether the explanatory variables, i.e. internally generated
revenues and statutory allocations) adequately explain the behavior patterns of the dependent variables (i.e. State
governments expenditures and total revenues).
The results of the statistical analysis were used to test the hypotheses. For each hypothesis, decision (rejection or
acceptance of the null) is based on the coefficient of each parameter and the F- test values.
8. ANALYSIS OF DESCRIPTIVE RESULTS
Table 4 below is the summary of the descriptive statistics of the means and standard deviations as derived from the
empirical data reported in tables 5-9 (regression outputs of the dependent and the independent variables).It can be
observed from this table that the dependent variables, real total expenditure (RTE) and the independent variables (RTE)
had the highest overall means of #1892. 52bn and #1963.29bn respectively.
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Table 4: Summary of descriptive statistics
Variable Mean S.D N
RTE 1963.29 1362.51 15
RTR 1892.55 1286.03 15
RIGR 291.30 243.34 15
RSA 1016.91 627.02 15
Source: Summary of descriptive statistics
Key: RTR = Real total revenue of state governments in Nigeria
RITR = Real internally – generated revenue of state governments in Nigeria
RTE= Real total expenditure of state governments in Nigeria
RSA = Real statutory allocations of state governments in Nigeria
The difference between means of real total expenditure (RTE) and real total revenue (RTR) of #70.74bn (#1963.29 -
#1892.55) indicates the average level of deficit financing of State governments‘ operations during the fifteen – year study
period.
In the same vein, the explanatory variables, real internally-generated revenue (RIGR) and real statutory allocations (RSA)
had relatively lower average yields of #291.30bn and #1016.91bn respectively. Worthy of special note is also, the
significant difference between the means of statutory allocations (RSA) and internally – generated revenue (RIGR).
Average statutory allocations exceed average internally – generated revenue by a whopping #725.6bn (#1016.91-#291.30)
during the study period. In other words, statutory allocations account for nearly 54% of total revenue of state
governments, while the balance of 46% is accounted for by internally – generated revenue and state government‘s
borrowings. The low average yield of internally – generated revenue as compared to statutory allocation is an indication
of the alarming level of over dependence of State governments in Nigeria on statutory allocations over the years.
9. REGRESSION RESULTS
The statistical indexes of the relationship between the dependent and independent variables are summarized in table5
below. The indexes were derived from the actual regression results as detailed in tables 5 to 9.
Table 5: Summary of Regression Result
Equation Const. Regr coef R2
Adjsd R2
Std Erro Sig.
1 RIGR vs RTE 418.867 5.302 0.896 2.888 0.499 0.0000
2 RSA vs RTR - 165.32 2. 093 0.928 0.922 0.162 0.0000
3 RIGR vs RTR 437.632 4.994 0.893 0.884 0.479 0.0000
4 RSA vs RTR -129. 635 1.989 0.893 0.935 0.139 0.0000
Source: Authors Compilations from regressed data
Table 5 shows the regression result of the relationship between the dependent variables (real total expenditure and real
total revenue of State governments) and the independent variables (real internally generated revenue and real statutory
allocations of State governments) for the fifteen – year period (1999- 2013). Each of the four equations represents each of
the four specific objectives set out for this study. The regression results show that the estimated coefficients of the
regression parameters have positive signs, thus confirming our a-priori expectation. The implication of these signs is that
the dependent variables are positively influenced by the independent (explanatory) variables.
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From equations 1 (row 1) the coefficient of determination R2
of 0.896 implies that 89.6% of the sample variation in the
dependent variable, total expenditure, is explained or caused by the explanatory variable, internally – generated revenue,
while 10. 4% is unexplained. This means that 10. 4% could be caused by other factors or variables not built into the
model.
In the same vein, the R2
value of 0.893 for equation two implies that 89.3% of the sample variation in total revenue is
explained by internally – generated revenue while 10.7% is unexplained and may have been caused by factors not
included in the regression model.
For equations three and four the coefficients of determinations, R – square values are 0.928 and 0.940 respectively and are
higher than those for equations one and two respectively. This implies that statutory allocations (SA) contribute more to
total State government expenditures (TE) and total revenues (TR) than internally – garneted revenues (IGR).
This is further buttressed by the trends in the movements of the dependent and independent variables as depicted in the
tables, graphs and bar-charts (see appendices).
10. TESTS OF HYPOTHESES
Tables 6-9 provide details of the regression outputs for the tests of hypotheses 1-4. In all four cases the null hypotheses
were rejected leading to the conclusion that the dependent variables and the explanatory variables are positively
correlated. However, the low ratio of internally-generated revenue to total expenditures and total revenues of Nigeria State
government is indicative of the fact that the potentials of their internal revenue sources are not fully exploited. This trend
needs to be reversed.
Table 6: Regression Output of IGR on TE
Dependent Variable: TE
Method: Least Squares
Date: 03/16/15 Time: 06:07
Sample: 1999 2013
Included observations: 15
Variable Coefficient Std. Error t-Statistic Prob.
C 418.8671 186.9411 2.240637 0.0431
IGR 5.301841 0.499405 10.61631 0.0000
R-squared 0.896584 Mean dependent var 1963.293
Adjusted R-squared 0.888629 S.D. dependent var 1362.509
S.E. of regression 454.7005 Akaike info criterion 15.20072
Sum squared resid 2687783. Schwarz criterion 15.29513
Log likelihood -112.0054 Hannan-Quinn criter. 15.19972
F-statistic 112.7061 Durbin-Watson stat 1.591703
Prob(F-statistic) 0.000000
Source: Statistical analysis of empirical data using e-view 3.0
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Table 7: Regression Output of SA on TE
Dependent Variable: TE
Method: Least Squares
Date: 03/16/15 Time: 06:17
Sample: 1999 2013
Included observations: 15
Variable Coefficient Std. Error t-Statistic Prob.
C -165.3195 191.5271 -0.863166 0.4037
SA 2.093223 0.161810 12.93631 0.0000
R-squared 0.927917 Mean dependent var 1963.293
Adjusted R-squared 0.922372 S.D. dependent var 1362.509
S.E. of regression 379.6188 Akaike info criterion 14.83978
Sum squared resid 1873435. Schwarz criterion 14.93418
Log likelihood -109.2983 Hannan-Quinn criter. 14.83877
F-statistic 167.3481 Durbin-Watson stat 1.362331
Prob(F-statistic) 0.000000
Source: Statistical analysis of empirical data using e-view 3.0
Table 8: Regression Output of IGR on TR
Dependent Variable: TR
Method: Least Squares
Date: 03/16/15 Time: 06:05
Sample: 1999 2013
Included observations: 15
Variable Coefficient Std. Error t-Statistic Prob.
C 437.6323 179.3699 2.439832 0.0298
IGR 4.994580 0.479179 10.42320 0.0000
R-squared 0.893130 Mean dependent var 1892.553
Adjusted R-squared 0.884909 S.D. dependent var 1286.027
S.E. of regression 436.2847 Akaike info criterion 15.11803
Sum squared resid 2474477. Schwarz criterion 15.21244
Log likelihood -111.3852 Hannan-Quinn criter. 15.11703
F-statistic 108.6432 Durbin-Watson stat 1.474717
Prob(F-statistic) 0.000000
Source: Statistical analysis of empirical data using e-view 3.0
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Table 9: Regression Output of SA on TR
Dependent Variable: TR
Method: Least Squares
Date: 03/16/15 Time: 06:15
Sample: 1999 2013
Included observations: 15
Variable Coefficient Std. Error t-Statistic Prob.
C -129.6350 164.8994 -0.786146 0.4459
SA 1.988568 0.139314 14.27402 0.0000
R-squared 0.940022 Mean dependent var 1892.553
Adjusted R-squared 0.935409 S.D. dependent var 1286.027
S.E. of regression 326.8412 Akaike info criterion 14.54039
Sum squared resid 1388727. Schwarz criterion 14.63480
Log likelihood -107.0529 Hannan-Quinn criter. 14.53939
F-statistic 203.7476 Durbin-Watson stat 1.366875
Prob(F-statistic) 0.000000
Source: Statistical analysis of empirical data using e-view 3.0
11. DISCUSSION OF RESULTS
Analysis of the descriptive statistics of State governments finances show that average internally-generated revenue were
consistently low in comparison to the levels of total revenue and total expenditures of state governments during the study
period (1999- 2013). This is attributable to lack of commitment on the part of government revenue agencies to tap fully
the potentials of various revenue sources available to State governments in Nigeria. Contrastingly, the mean contributions
of statutory allocations to total government expenditures and total revenues are quite high. The reason for this is not far-
fetched – Nigeria is a major oil producer and revenue there-from is always in steady supply for distribution to the various
tiers of government. However, with the current significant fall in oil prices in the world market (below $50 per barrel in
February, 2015) it will not augur well for State governments to continue to fold their hands waiting for statutory
allocations.
The results of our empirical analysis further show that both of the explanatory variables (internally – generated revenue
and statutory allocations) have significant relationships with each of the two dependent variables (total expenditures and
total revenues of State governments). This finding is in agreement with Obioma et al (2010) who reported a long- run
relationship between government revenue and government expenditure in Nigeria.
Our analysis further show that statutory allocations constitute the major components of State government expenditures
and total revenue (averaging over 60 percent ) during the study period. However, it has been shown in pervious studies
that over dependence on oil revenue has far – reaching consequences – it may lead to the ―Dutch disease syndrome
(Herberger, 1983, cited in Chukwu, 2011). The studies explain how the convenience of wealth effect influences
governments expenditures and non- oil revenue efforts.
With respect to government expenditures, given the high level of confidence that steady inflow of oil revenue is a
certainty, government tend to increase expenditures beyond acceptable levels thereby inducing inflation.
The minimal contributions of internally – generated revenue to government expenditure and total revenue as revealed in
the descriptive statistics, is attributable to the low yields of our tax system. The reason, according to Osoro (1991), cited in
Chukwu (2011) is that most of Nigerian tax reforms focus on forms of taxes instead of administrative efficiency that
would result to improved income from prevailing sources of tax. Other reasons include administrative inefficiency, faulty
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collection system, legislative complexity as well as apathy on the part of those outside the tax net (self – employed
persons).
The concern over the meager contribution of non- oil revenue to the finances of State governments, as revealed in this
study supports Aghevli and Sassanpour (1982) and Veez – Zedeh (1989) who observed that the level of non- oil revenue
is a function of the magnitude of the economic effect of the oil wealth. In specific terms they noted that a nation‘s
perception of the level of its oil wealth determines to what extent effort is exerted towards tapping resources from the non
oil sector. A nation is likely to shift more resources from the oil sector to the non oil sector, through tax increases, the
more the government perceives the oil wealth to be permanent, and vice-versa.
Our finding that high expectation of huge statutory allocations from the central government is a disincentive to internal
revenue generation is further supported by Oseni (2013) who reports that there is a general erroneous notion that without
federal allocations States cannot discharge their civic obligations to the people. However, it should be noted that within
the territorial boundaries of each state a lot of revenue potentials abound which are left untapped. For instance, Lagos
state generates huge amount of internal revenue annually even though it does not receive extra allocations from oil
revenue – quite a good lesson to other states!
The foregoing has the following policy implications: State governments should channel more efforts toward boasting
internal revenue generation as a cushion against swings in oil revenue, and hence the federation account. In particular,
there is the need to revamp the agricultural sector so as to boast food production for local consumption and export.; the tax
administration machinery at the states level should be improved so as to improve the yield of the states tax system
through proper maintenance of registers of taxpayers which should be kept current, free distribution of tax return forms to
all areas, taking into account the geographical distribution of taxpayers and regular field audits at the taxpayers‘ places of
business during which intensive checks of the taxpayer‘s records and business are conducted by trained personnel. The
Internal Revenue Board should make it as a permanent part of its culture, regular town hall meetings with taxpayers and
staff of the Board to educate the former on the need for and benefits of tax compliance.
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Vol. 2, Issue 3, pp: (131-145), Month: July 2015 - September 2015, Available at: www.paperpublications.org
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APPENDICES
APPENDIX A: GRAPHICAL PRESENTATIONS OF EMPIRICAL DATA
APPENDIX B:: BAR –CHAR
B1: STATES INTERNALLY-GENERATED REVENUE AND TOTAL EXPENDITURE
0
1,000
2,000
3,000
4,000
5,000
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
TE IGR
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B2: STATES STATUTORY ALLOCATIONS AND TOTAL EXPENDITURES
B3: STATES INTERNALLY GENERATED REVENUE AND TOTAL REVENUE
B4: STATES STATUTORY ALLOCATIONS AND TOTAL REVENUE
0
1,000
2,000
3,000
4,000
5,000
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
TE SA
0
1,000
2,000
3,000
4,000
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
TR IGR
0
1,000
2,000
3,000
4,000
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
TR SA