




































American Interdisciplinary Journal of Business and 

Economics 
ISSN: 2837-1909 | Impact Factor : 8.87 

Volume. 12, Number 3; July - September, 2025; 

Published By: Scientific and Academic Development Institute (SADI) 

8933 Willis Ave Los Angeles, California 

https://sadijournals.org/index.php/AIJBE|editorial@sadijournals.org 

 

 

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ANALYSIS OF INTERNALLY GENERATED REVENUE (IGR) AND 

ECONOMIC GROWTH OF SOUTH STATES OF NIGERIA 
 

Atu Gina, Reuben Omozuafo and Elijah Omorowa 

Accounting, Department of Accounting, Well Spring University, Benin City. 

Email: atugina18@gmail.com; omozuaforeuben@gmail.com; elijahomorowa@gmail.com 

DOI: https://doi.org/10.5281/zenodo.17047769 

Abstract: This study determined the effect of internal generated revenue on gross domestic product in South-

South States in Nigeria. Ex-Post Facto research design was adopted by the study. Data were generated from the 

publications of State Internal Generated Revenue (SIGR) of the five South-South States and Central Bank of 

Nigeria (CBN), for fourteen (14) years spanning from 2011 to 2024. Regression analysis was employed to test 

the hypothesis. The study found that internal generated revenue has a significant positive effect on gross 

domestic product among in Nigeria. The study recommended that though the IGR has a positive significant 

effect on gross domestic product, and it can be used for policy making, a deliberate action needed by South-

South States governments to improve internal generated revenue of their states, as well develop a proper 

mechanism for the appropriate application of their resources. 

Keywords: Internal generated revenue, Gross domestic product and South-South States, Nigeria. 

 

Introduction  

State governments in Nigeria are in economically precarious positions in this period of monetary recession. 

Owing largely to dwindling oil fees and economic imbalance, many states in Nigeria are nonetheless defaulting 

in their economic responsibilities to their workers despite the bailout finances via the Federal government to 

assist them to pay splendid salaries and allowances. Most of the states should hardly ever meet their recurrent 

expenditure no longer to talk of capital fees. The federal government of President Muhammadu Buhari granted 

more statutory allocation of N1.seventy five trillion as bailout to state governments in 2017, following pleas 

from Nigeria Governors‟ forum (DMO, 2017 referred to in Fasoye, 2020).This gesture became followed by 

means of some other launch of N760.17 billion as refund under the Paris membership mortgage to state 

governments (Fasoye, 2020). 

Beyond internally generated revenue and federally allocated revenue, debt financing is another tool for 

handling a situation where government revenues fall short of expenditures. Debt option is analogous to salt in 

cooking: too little or too much of it is bad. Yusuf and Mohd (2021) posit that economic growth becomes faster 

when judicious borrowings are used to fund public and infrastructure development. However, excessive debt 

funding is not without numerous adverse consequences on the economy which include but not limited to huge 



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debt overhang and cash strain owing to interest payments (Joy & Panda, 2020). In the same vein, high debt 

profile inhibits the borrower’s capacity to invest in productive activities such as investment in infrastructure, 

education and public health (Johnny & Johnnywalker, 2018). 

Personal income tax, licenses, charges and fines were the bedrock of internally generated revenue (IGR) of 

Sokoto kingdom. A huge percentage of the IGR come from personal profits tax (PAYE) deductions from 

employee’s salary resident inside the kingdom. As a result, it has become vital for country and nearby 

governments to provide sufficient sales from home assets. This requirement emphasizes how eager nation, 

local, and even federal governments are to locate new revenue streams or to come to be extra competitive and 

innovative in their methods of obtaining price range from already-present resources. 

Revenue generation and its sustainability are of paramount importance due to the fact that revenue represents 

the life wire of establishments both in evolved and developing nations. The significance of revenue era, 

allocation, and distribution toward keeping each the prevailing and new socio-political and monetary structure 

in any economy cannot be overemphasized (Morufu & Babatope, 2017). Revenue generation guarantees 

financial viability which represents the potential to generate sufficient income to fulfill operating bills and debt 

commitments, and in which relevant, to where increase even as maintaining service levels. 

Studies such like; Kabiru, Abdulkadir and Yahaya (2024) ascertained the importance of internally generated 

revenue (IGR) on service delivery in Sokoto state. Agnes, Samuel and Okpanachi (2023) determined the effect 

of internally generated revenue at the national and regional levels in Nigeria, which are dealing with significant 

development obstacles. Okon and Uwah (2023) assessed the association between internally generated revenue 

and infrastructural development in Akwa Ibom State from 2007 to 2020. Ibukun (2023) evaluated of the 

association between internally generated revenue and economic growth in Lagos State from 2012 to 2020. 

Nwafor, Obineme, and Okey (2021) determined the returns from land-based revenue and internally produced 

revenue after budgeting. Sani and Ahmad (2019) examined the effect of aggregate and disaggregate tax income 

on economic growth in Nigeria from 1979 to 2018. Nkechi and Onuora (2018) ascertained the effect of 

internally generated revenue on the infrastructural development of the southeastern states in Nigeria from 2013 

to 2017. The prior studies have conducted research on internally generated revenue from different parts and 

regions in Nigeria between two to three years ago. However, to the best of the researchers’ knowledge, there 

was a dearth study of this nature in South-South region of the country. This has created regional and periodic 

gaps which this present study sought to fill.  This study assesses the effect of internal generated revenue on 

gross domestic product in South-South States in Nigeria. 

Literature Review  

Concept of Revenue 

Taxation is a way of raising revenue or income by the authorities be it the primary, state or neighborhood 

government to meet their macro-monetary goals inside the realms of monetary and financial policies. The 

authorities makes use of the profits it gets from taxes to perform its mandate, which incorporates, amongst other 

things, enforcing laws and guidelines, shielding people and belongings, imparting welfare blessings, and 

resolving conflicts (Kabiru, Abdulkadir & Yahaya, 2024). Tax is an obligatory levy imposed by means of 

government being a higher authority both directly or circuitously on earning of individuals and companies our 

bodies and any refusal is meted with appropriate punishment. 



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Different scholarly view revenue differently. For instance, Sani (2019) recognizes tax revenue as a social 

engineering tool that can foster economic development and growth. It is essential to any country and a 

prerequisite for its development. Every state government must also prevent economic collapse by providing 

macroeconomic variables. Sani and Musbahu (2019) reported that internally generated revenue is an outcome 

of economic activity. Identifying unrecorded activities and using the collected funds to improve the business 

environment can increase taxpayers' willingness to pay taxes. Because IGR is a key factor in determining a 

state's allocation of revenue from the federation account, the current revenue sharing formulae disfavor states 

when internally generated revenue is low.  

Revenue is money received by the government from taxes and non-tax sources to enable it to undertake public 

expenditure. Many authors have defined revenue in their different perceptions. Nightingale (2002) defines 

revenue as funds needed by the government in the public sector to finance government activities, adding that 

these funds are generated from non-oil sources such as income tax and other forms of taxes, royalties, fines, 

fees, rates, and aids from the federal government, foreign financial institutions and foreign countries. Otunbala 

(2011) documented that government revenue includes the entire funds generated from oil and non-oil sources 

other than funds raised from the issue of debt instruments such as government bonds, stocks, treasury 

certificates and treasury bills from capital and money market Non-oil sources of revenue include income tax, 

royalties, fees, utilities, miscellaneous revenues, among others. Udu and Nkeanor (2016) assumed that 

internally generated revenues are those generated within the state, including revenue from personal income tax, 

motor vehicle licensing, royalties, fees, fines rate, and funds from sales of government properties, among 

others. Accordingly, the two sources of revenue accruing to State governments are from the externally 

generated and internally generated revenue. The externally generated revenue is allocated from the federation 

account and value-added tax. 

Internally Generated Revenue 

Adesoji and Ogechi (2013) emphasized that internally generated revenue is those revenues that are derived 

within the state from various sources and are not evenly distributed by the states along the lines of 

infrastructural development. The inequality in distribution may be based on the need of the state for specific 

development or recurrent expenditures. In the report of the Nigerian Extractive Industries Transparency 

Initiative (NEITI, 2013), Internally Generated Revenue (IGR) is defined to include the following: personal 

income tax which applies to the residents of the state; withholding tax which applies to individuals only; capital 

gains tax for individuals only; stamp duties applicable to instruments executed by individuals only; road taxes, 

like vehicle licenses; taxes on pool bets, lottery and casino wins; business premises and registration fees; 

developments levy applicable to taxable individuals only; fees for right occupancy on urban land owned by the 

state government; market taxes and levies where state finance is involved; and miscellaneous revenue including 

but not limited to rent on government property, incomes from investment (Ibukun, 2023).  

Adesoji and Ogechi (2013) emphasized that internally generated revenue is the ones income which are derived 

in the kingdom from diverse resources and are not calmly disbursed by the states alongside the strains of 

infrastructural development. The inequality in distribution can be primarily based at the need of the kingdom 

for precise improvement or recurrent expenditures. inside the record of the Nigerian Extractive Industries 

Transparency Initiative (NEITI, 2013), Internally Generated revenue (IGR) is described to consist of the 

following: personal profits tax which applies to the residents of the nation; withholding tax which applies to 



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individuals best; capital profits tax for individuals handiest; stamp obligations relevant to contraptions done by 

using people handiest; street taxes, like vehicle licenses; taxes on pool bets, lottery and on line casino wins; 

enterprise premises and registration fees; tendencies levy applicable to taxable individuals simplest; prices for 

right occupancy on urban land owned by way of the kingdom government; marketplace taxes and levies 

wherein kingdom finance is worried; and miscellaneous revenue inclusive of but no longer restrained to hire on 

authorities property, earning from funding (Ibukun, 2023). 

Fines, Fees, Rates and Forfeits 

Income from this aspect is from college fees generated from state-owned colleges, water costs, and fines from 

the court, amongst others. International Monetary Fund (IMF, 2013) stated fines and penalties are obligatory 

modern-day transfers imposed on gadgets by means of courts of regulation or quasi-judicial our bodies for 

violations of legal guidelines or administrative rule. Most fines, consequences, and forfeits are determined at a 

specific time. Administrative costs but encompass expenses for compulsory licenses and other administrative 

fees which are income of offerings. Fines and forfeitures and monetary consequences imposed for violations of 

the regulation, fines and costs which include parking tickets and rushing tickets (such as those from visitors 

cameras), be counted-imposed charges used to cover administrative fees and funds, unique initiatives and 

different crook justice-related prices and penalties. Consistent with Afeez, Ndalu, and Micah (2022), a tax 

penalty is a financial penalty imposed by using the inner sales service (IRS) for acting a prohibited act or failing 

to execute a required act, together with failing to timely file a return or submitting incorrect or undervalued 

taxes. 

Economic Growth 

Economic growth refers to the increase in production of goods and services within an economy over a period of 

time. It is traditionally measured as the percent rate of increase in gross domestic product (GDP). In terms of 

measurement, economic growth can be measured in nominal terms, or in real terms. It is measured in nominal 

terms if it includes inflation while it is in real terms if there is adjustment for inflation. Measurement of 

economic growth in real terms (i.e. inflation adjusted terms) is preferable because the distorting effect of 

inflation on the price of good and services produced is eliminated (Ibukun, 2023). 

Growth can be intensive or tremendous. It is far in depth increase where the growth is resulting from extra 

green use of inputs (which includes labour, physical capital, power or substances). Again, sizeable growth way 

that the growth is driven only by way of will increase in the quantity of inputs to be had for use (extended 

population, new territory). For comparing one country's economic growth to another, GDP or GNP according to 

capita is used to account for population differences between nations. Monetary growth is not the same as 

economic improvement, although the two (2) terms are used interchangeably, maximum particularly by way of 

non-economists. Economic growth commonly refers to the sustained, concerted moves of policy makers and 

communities that promote the same old of residing and monetary health of specific vicinity. 

Empirical Review 

Kabiru, Abdulkadir and Yahaya (2024) ascertained the importance of internally generated revenue (IGR) on 

service delivery in Sokoto state. Data were sourced from the state’s financial statements and reports. The study 

used regression analysis and correlation coefficients to evaluate the level of relationship between the variables. 

The found thatinternally generated revenue affects Sokoto State's service delivery, the inefficiencies and 

offering potential solutions. Angahar and Olalere (2023) investigated Internally Generated Revenue (IGR) and 



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the Economic Viability of States in Nigeria using State Government Debt Stock from 1986 to 2021 for six 

states each from Nigeria's six geopolitical zones. A Panel Vector Error Correction Model (PVECM) was used 

as the method of analysis. Results showed that the IGR of States in Nigeria had a positive effect on State 

government expenditure. Agnes, Samuel and Okpanachi (2023) determined the effect of internally generated 

revenue at the national and regional levels in Nigeria, which are dealing with significant development obstacles. 

As a result of these efforts, the state's ranking rose from 11th in 2016 to 6th in 2021, surpassing Kano, which 

according to the 2019 census is the most densely populated state in Nigeria and the main economic hub of the 

northern region. The data used in this study was sourced from credible publications, published studies, and 

other media outlets. This led to a significant increase in Internal Generated Revenue (IGR), an unavoidable 

outcome that revolutionized revenue creation in Nigeria's Kaduna State.  Okon and Uwah (2023) assessed the 

association between internally generated revenue and infrastructural development in Akwa Ibom State from 

2007 to 2020. Data were analyzed using simple regression analyses to test the hypotheses. The study found that 

internally generated revenue (IGR) has a positive relationship with infrastructural development in the State, 

showing a positive and significant relationship with development in education, and an insignificant but positive 

relationship with health and sanitation. Ibukun (2023) evaluated of the association between internally generated 

revenue and economic growth in Lagos State from 2012 to 2020. Data generated from National Bureau of 

Statistics and Lagos State Bureau of Statistics was analyzed with the Autoregressive Distributed Lag technique. 

The study show a long-run significant relationship for other taxes, direct assessment and road taxes with gross 

domestic product in Lagos state, leaving out pay as you earn with insignificant impact. Nwafor, Obineme, and 

Okey (2021) determined the returns from land-based revenue and internally produced revenue after budgeting. 

Using a descriptive technique, the study discovered that Abia state failed to realize what was anticipated nearly 

throughout the time, that the growth rate of both has remained negative, and that the contribution of land-based 

tax income to domestically produced revenue was less than 5% on average. Fasoye (2020) studied the factors 

that determine the Internally Generated Revenue (IGR) of State governments in Nigeria. The PAYE and road 

taxes were found to be the primary determinants of IGR for the States, as they appeared to be less affected by 

the prevalence of corrupt practices in Nigeria's public sector. This information was obtained using the Fully 

Modified Ordinary Least Square (FMOLS) technique. The study came to the conclusion that State governments 

in Nigeria have over the years fallen short of fully utilizing other internal revenue sources available to them. 

Joseph and Omodero (2020) examined the relationship between government revenue and economic growth in 

Nigeria. The study employed exploratory and ex post facto research design. Data from 1981 to 2018 were used. 

The study used the ordinary least square (OLS) regression technique. The result revealed that federally received 

revenue and value-added tax (VAT) have a moderate and positive impact on economic growth. Onwuka and 

Christian (2019) determined the effect of revenue generation on infrastructural development in Nigeria. 

Ordinary least square (OLS) regression analysis technique was employed in the study from 1981 to 2018. The 

study revealed that revenue generated has a significant impact on infrastructural development in Nigeria. Sani 

and Ahmad (2019), examined the effect of aggregate and disaggregate tax income on economic growth in 

Nigeria from 1979 to 2018 using a sample technique. They employed the ARDL model. The findings showed 

that PPT significantly affects the gross domestic product, with a coefficient of 0.4675 at the 5% significance 

level. Furthermore, there is a substantial positive correlation between corporation income tax and economic 

growth (coefficient 0.1975, p-value of 5% significant). The study showed that tax revenue significantly 



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influenced economic growth. The report suggests that the government should strive for economic 

diversification, as it must leverage petroleum profits to broaden its income streams. Overall, the results showed 

that tax income significantly influenced overall economic growth. Almustapha (2018) used a field survey 

research design to investigate the factors that contribute to tax evasion in the informal sector in the 

Northwestern states of Nigeria. The study found that a number of factors, including fiscal and tax issues, 

economic and administrative issues, and others, statistically influence tax evasion behavior. Michael (2018) 

ascertained the effect of internally generated income (IGR) on Nigeria's economic growth. In Nigeria, the issue 

of states' and local governments' insufficient income collection, which makes it difficult for them to meet their 

spending commitments, has gained significant attention. This study used an ex post facto research design to 

find out how total intergovernmental revenue (TIGR), federal government independent revenue (FGIR), state 

intergovernmental revenue (SIGR), and local intergovernmental revenue (LIGR) affect the real gross domestic 

product (RGDP), which is a measure of the growth of the economy as a whole. The Central Bank of Nigeria's 

(CBN) Statistical Bulletin provided the temporal data used in this study, which covered the years 1981 to 2016. 

To evaluate hypotheses, the data analysis employed the statistical techniques of t-tests and multiple regressions. 

The results of the study show that TIGR, SIGR, and LIGR have a strong and statistically significant positive 

effect on RGDP. Nkechi and Onuora (2018) ascertained the effect of internally generated revenue on the 

infrastructural development of the southeastern states in Nigeria. The ex-post facto design was used in the 

study. Secondary data were used, and they were extracted from budget estimates of each of the five South 

Eastern States of Imo, Abia, Ebonyi, Enugu, and Anambra state from 2013 to 2017. The study employed 

descriptive statistics, correlation, and linear multiple regression for data analysis and data interpretation. 

Findings from the study revealed that there is a significant relationship between internally generated revenue 

and the cost of infrastructure in the South East States as of the date of the study, thus suggesting that 

government should increase IGR in other to meet up the cost of infrastructure. Amin (2018) ascertained the 

sources of revenue generation, the capacity of the Asa local government area of Kwara State in generating 

revenues for developmental programs, and the extent to which the generated revenues have been used for 

community development in the local government. The finding from the study showed that: Asa local 

government generates revenues from internal and external sources. External sources are the statutory allocation 

from federal accounts and borrowed money from the State government. The local government generated huge 

amounts of revenue from market rates and levies and permit fees on land and establishment. Tax enforcement is 

not efficient and a majority of the respondents agreed that local government officers are more efficient than 

consultants. Mbah and Onuora, (2018) ascertained the effect of internally generated revenue on infrastructural 

development of south-east states of Nigeria. The study adopted an ex-post facto research design. The data used 

were secondary. The study employed descriptive statistics, correlation and multiple linear regressions for data 

analysis. The study revealed a significant relationship between internally generated revenue (IGR) and the cost 

of infrastructural development in the southeast states of Nigeria. Oyetakin and Yahaya, (2017) analyzed the 

effect between internally generated revenue and infrastructural development in the public universities in Ondo 

state, Nigeria. Data were generated from questionnaires of 50 management staff were sampled. The study found 

a negative and significant relationship between internally generated revenue (IGR) and the amount spent on 

infrastructural development in public universities in Ondo state. Ajiteru, Adaranijo, and Bakare (2018) studied 

the association between internally generated revenue and infrastructural development in Ogun state. Data 



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obtained through a survey. The questionnaire was analyzed using descriptive statistics. The study found that tax 

revenue is a very strong tool for infrastructural development in the state.  

Methodology  

Ex-post Facto research design was employed. An ex-post facto investigation seeks to indicate the possible 

association on existing condition or state of affairs and searching back in time for plausible contributing factors. 

The population of the study was five states (Edo, Delta, Akwa Ibom, Rivers and Cross River states) of South-

South Region. Data were generated from the publications of State Internal Generated Revenue (SIGR) of the 

five South-South States Central Bank of Nigeria (CBN), Annual Reports and Statement of Accounts and 

Statistical Bulletins of various issues for fourteen (24) years spanning from 2011 to 2024. 

Research Variables 

Independent Variables 

The independent variable in this study is state internal generated revenue (IGR),  

The dependent variable is economic growth, which is proxied by:  

i. Real Gross Domestic Product: was sourced from Central Bank of Nigeria Statistical Bulletin, World 

Bank Statistical Bulletin and National Bureau of Statistics. 

Model Specification 

This model modified the model of Ofoegbu, et. al. (2016) presented functionally as: 𝑅𝐺𝐷𝑃 = 𝑓(CIT, PPT, 

VAT, CED)…………………………………………………....…………i 

𝐻𝐷𝐼 = 𝑓(CIT, PPT, VAT, CED)………………………………………………………ii 

Thus, the testable models were specified in econometric form as follows: 

Model I 

𝑙𝑛𝑅𝐺𝐷𝑃𝑡 = 𝛼0 + 𝛼1𝑙𝑛𝐶𝐼𝑇𝑡 + 𝛼2𝑙𝑛𝑃𝑃𝑇𝑡 + 𝛼3𝑙𝑛𝑉𝐴𝑇𝑡 + 𝛼4𝑙𝑛𝐶𝐸𝐷𝑡 + 𝜀𝑡…………… iii 

Model II 

𝑙𝑛𝐻𝐷𝐼𝑡 = 𝛽0 + 𝛽1𝑙𝑛𝐶𝐼𝑇𝑡 + 𝛽2𝑙𝑛𝑃𝑃𝑇𝑡 + 𝛽3𝑙𝑛𝑉𝐴𝑇𝑡 + 𝛽4𝑙𝑛𝐶𝐸𝐷𝑡 + 𝜀𝑡....…...............iv 

Where: 

RGDP = Real Gross Domestic Product is market value of final goods and services produced by persons, 

businesses, governments and foreigners less inflation 

Thus, the Modified Model used for the study is represented in a functional form as shown as: 

GDP = ƒ(IGR, IFR) ....…… ..   ………………………………………………………….i . 

In a linear function, the following models were constructed in line with the study objectives: 

GDPit = βo + β1IGRt + β2IFRt + µt   - - - - -  - - i 

Where: 

IGRt = Internal Generated Revenue for period t (Independent variable) 

IFRt = Inflation rate for period t (control variable) 

βo = Constant term 

β1= Regression coefficient of the independent variables 

µt = Error Term for period t 

Method of Data Analysis 

Descriptive and Inferential statistics of the data to be used in this study were conducted via the aid of E-View 

9.0 statistical software, using: 



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i) Descriptive statistics: is a good measure of central tendency that provides information on the mean, 

standard deviation, skewness, kurtosis, minimum and maximum values of the variables observed during the 

period under investigation.  

ii) Multiple Regression analysis:  predicts the value of a variable based on the value of the other variable 

and explains the effect of changes in the values of variable on the values of the other variables.  

Decision Rule 

The decision will be based on 5% (0.05) level of significance. The null hypothesis (Ho) will be accepted, if 

probability value (P-value) calculated is greater than  (>) than the  stated 5% level of significance, otherwise 

reject. 

Data Analysis and Results 

Table 1: Descriptive Statistics  

 GDP IGR_B_ IFR 

 Mean  466.6584  58.27071  15.56571 

 Median  451.8100  55.49000  12.73500 

 Maximum  671.9200  92.60000  39.93000 

 Minimum  375.7500  28.02000  8.050000 

 Std. Dev.  73.33862  22.80060  8.111267 

 Skewness  1.411209  0.235935  1.904210 

 Kurtosis  4.936059  1.573653  6.249574 

 Jarque-Bera  34.16692  6.583288  73.10270 

 Probability  0.000000  0.037193  0.000000 

 Sum  32666.08  4078.950  1089.600 

 Sum Sq. Dev.  371120.1  35870.85  4539.693 

 Observations  70  70  70 

For gross domestic product (GDP), the mean value is 466.66 with a standard deviation of 73.34, showing a 

moderate dispersion of data around the mean. The negative skewness of 1.412, suggests that the distribution is 

skewed to the right, implying a longer tail on the positive side. The high kurtosis of 4.94 is showing heavy-

tiredness and potential outliers in the distribution. The Jarque-Bera test's extremely low probability (0.000) 

signifies a departure from normality, reinforcing the presence of non-normal distribution characteristics. The 

maximum value of 671.92 and the minimum of 375.75 reflect the range of gross domestic product, with the 

data potentially containing extreme values or outliers. 

For Internal Generated Revenue (IGR), the mean is 58.27 with a small standard deviation of 22.80, showing a 

relatively narrow dispersion of data around the mean. The positive skewness of 0.23 suggests a longer tail to the 

right, showing potential right values. The kurtosis of 1.57 reflects normal-tiredness and the potential for 

extreme values. The Jarque-Bera test with a probability of 0.037, accepts the normality assumption, revealing 

non-normal distribution characteristics. The minimum value of 92.60 and the maximum of 28.02 indicate a 

limited range of return on assets values, suggesting relatively consistent profitability levels among the banks, 

with potential for outliers on the lower end.  

For inflation rate (IFR), the mean is 15.57 with a small standard deviation of 8.11, showing a relatively narrow 

dispersion of data around the mean. The positive skewness of 1.90 suggests a longer tail to the right, showing 

potential right values. The kurtosis of 6.25 reflects normal-tiredness and the potential for extreme values. The 

Jarque-Bera test with a probability of 0.000, accepts the normality assumption, revealing non-normal 



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distribution characteristics. The minimum value of 39.93 and the maximum of 8.05 indicate a limited range of 

return on assets values, suggesting relatively consistent profitability levels among the banks, with potential for 

outliers on the lower end.  

Test of Hypothesis 

In other to examine the effect between the dependent variable GDP and the independent variable, and control 

variable  IGR and IFR respectively. The study used a pooled multiple regression analysis since the data had 

both time series (2011-2024) and cross sectional properties. The pooled interaction based multiple regression 

results are presented and discussed in Table 2 below. 

Table 2 Panel Least Square Regression analysis testing the relationship between GDP, IGR and IFR 

Dependent Variable: GDP   

Method: Panel Least Squares   

Date: 08/18/25   Time: 18:15   

Sample: 2011 2024   

Periods included: 14   

Cross-sections included: 5   

Total panel (balanced) observations: 70  

     
     Variable Coefficient Std. Error t-Statistic Prob.   

     
     C 317.2112 22.56702 14.05641 0.0000 

IGR_B_ 1.116803 0.289438 3.858524 0.0003 

IFR 5.420260 0.813604 6.662037 0.0000 

     
     R-squared 0.458872     Mean dependent var 466.6584 

Adjusted R-squared 0.442719     S.D. dependent var 73.33862 

S.E. of regression 54.74820     Akaike info criterion 10.88528 

Sum squared resid 200823.5     Schwarz criterion 10.98164 

Log likelihood -377.9847     Hannan-Quinn criter. 10.92355 

F-statistic 28.40771     Durbin-Watson stat 1.303629 

Prob(F-statistic) 0.000000    

     
     Source: Analysis Output using E-views 9 (2025)  

The Adjusted R-squared, at 0.44, takes into account the number of predictors and the sample size, providing a 

more conservative estimate of the model's explanatory power. The F-statistic of 28.408 is statistically 

significant with a p-value of 0.000000, indicating that the joint effect of the independent variable (internal 

generated revenue) significantly contributes to explaining the changes in gross domestic product. Therefore, the 

internal generated revenue model has a meaningful effect on understanding and predicting gross domestic 

product among the studied.  

The internal generated revenue (IGR) shows a substantial coefficient of 1.116803, indicating that a one-unit 

increase in results in a significant 112 increase in the natural log of total GDP. This positive and highly 

significant effect, with a probability of 0.000 that is less than 0.05, underscores the pivotal role of IGR in 

shaping GDP. The alternate hypothesis was accepted that internal generated revenue has a significant positive 



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effect on gross domestic product among in Nigeria (p-value = 0.000).  

Conclusion  

This study ascertained the effect of internal generated revenue on gross domestic product in South-South States 

in Nigeria. Data were generated from the publications of State Internal Generated Revenue (SIGR) of the five 

South-South States and Central Bank of Nigeria (CBN), for fourteen (14) years spanning from 2011 to 2024. 

Regression analysis was employed to test the hypothesis. The study found that internal generated revenue has a 

significant positive effect on gross domestic product among in Nigeria. 

Though the IGR has a positive significant effect on gross domestic product, and it can be used for policy 

making. Deliberate actions needed by South-South States governments to improve internal generated revenue 

of their states, as well develop a proper mechanism for the appropriate application of their resources.  

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