







































 Global Journal of Education and Allied  

Research (GJEAR) 
Volume.15, Number 10; October-2024; 

ISSN: 2837-3707 | Impact Factor: 7.80 

https://zapjournals.com/Journals/index.php/gjear  

Published By: Zendo Academic Publishing 

 

 

pg. 1 

 

INTERNAL REVENUE GENERATION METHODS UTILIZED BY 

SECONDARY SCHOOL PRINCIPALS FOR RAISING FUNDS FOR 

SCHOOL MANAGEMENT IN ANAMBRA STATE 

 
1Onyekwelu Raphael Azubuike, Ph.D. 

 

Article Info  Abstract 

Keywords: Internal Revenue 

Generation, Method, Principals, 

Fund, School Management 

 

DOI 

10.5281/zenodo.13909197 

 The main purpose of the study was to determine internal revenue 

generation methods utilized by secondary school principals for raising 

funds for school management in Anambra State. Three research 

questions guided the study. The descriptive survey research design was 

adopted for the study. The population of the study was 266 public 

secondary school principals in Anambra State. A validated 

questionnaire was used to collect data for the study. Application of 

Cronbach Alpha method on the instrument collected yielded reliability 

coefficient values of 0.87 and 0.85 for clusters 1 and 2 respectively 

with an overall reliability coefficient value of 0.86 mean was used to 

analyze data for the study. The findings of the study revealed that the 

findings of the study revealed that principals to a high extent use 

renting out school facilities and fundraising campaigns as internal 

revenue generation method for raising funds for school management in 

Anambra State. In contrast, principals to a low extent establish business 

ventures for internal revenue generation method for raising funds for 

school management in Anambra State. Based on these findings, the 

researcher recommended among others that the Post Primary School 

Service Commission (PPSSC) should organize training programme to 

educate secondary school principals on best practices and methods for 

implementing business ventures as a revenue generation method in 

secondary schools. 
 

 

Introduction 

Education is all deliberate and incidental efforts undertaken by a society to achieve specific objectives deemed 

beneficial to both the individual's personal development and the needs of the broader community. It is the process 

of gaining knowledge, skills, values, and attitudes through various instructional methods and learning 

experiences. Quality education involves not only the dissemination of knowledge but also the development of 

 
1Department of Educational Foundations, Faculty of Education, Chukwuemeka Odumegwu Ojukwu University, Igbariam 

Campus, Anambra State, Nigeria. 

https://zapjournals.com/Journals/index.php/gjear


Global Research Journal of Management and Social Sciences (GRJMSS) Vol. 15 (10) 

 

 
pg. 2 

critical thinking skills, problem-solving abilities, and the nurturing of creativity and innovation among learners. 

The Federal Republic of Nigeria (FRN) (2013) stated that Nigeria’s philosophy of education is based on a set of 

beliefs which one of it is that education is an instrument of national development and social change. In Nigeria, 

the education system is organized into distinct levels: basic education, secondary education, and tertiary 

education. 

Secondary education in Nigeria is crucial as it serves as a bridge between basic education and higher education 

or vocational training. The objectives of the National Policy on Education for secondary education are to equip 

individuals for a productive life within society and to enable them to pursue higher education (FRN, 2013). 

According to these objectives, secondary education in Nigeria should cultivate in each child the knowledge, 

interests, values, habits, and abilities that will help them find their role in society and use it to shape both 

themselves and society towards more elevated goals. The principal is responsible for the realization of the goals 

of secondary education. 

The principal serves as a central figure in educational institutions, wielding significant influence over all personnel 

and ultimately impacting the school's outcomes, whether positively or negatively. It's no surprise that the principal 

often bears the brunt of official blame when issues arise within the school (Amie-Ogan & Alabere, 2020). The 

principal holds the responsibility of leading the school professionally, collaborating with others to garner the 

commitment of the school community. Effective leadership involves fostering productive partnerships with staff 

to ensure effective cooperation and camaraderie. Similarly, Orhobo (2023) stated that the principals’ are trained 

on managing school finances in areas such as budgeting, accounting, procurement and financial reporting skills. 

Principals’ should have skills in management such as how to source for funds, budgeting skills, procurement 

skills, financial reporting and risk management (Njau et al., 2022). To plan school projects effectively, school 

heads should undergo financial training courses to warrant effective control and operation of physical resources. 

The funding of the education sector in Nigeria in the last 20 years has lagged some 15-20% suggested benchmark 

prescribed by the United Nations Educational, Scientific and Cultural Organization (UNESCO) (Amie-Ogan & 

Alabere, 2020).  This has increased the call by researchers for principals take advantage of internal revenue 

generation sources (Nemes et al., 2019).  

Internally Generated Revenue (IGR) refers to funds that are generated by the school and non-government sources. 

Internally generated revenue is also known as non-statutory sources of revenue (Amie-Ogan and Alabere, 2020). 

According to Erhagbe (2014) it is a combination of all non-governmental monetary accruals to the institution and 

may involve diverse strategies. Orhobo (2023) stated that internally generated funds are those funds that are 

realized through the efforts or operations of an entity itself. Nwakpa (2016) opined that internally generated 

revenue refers to all the money that are generated by the administrator from all the additional non-statutory 

sources of funding This type of revenue is derived from the goods or services produced from the internal activities 

of an organization. This therefore implies that any formal organization that produces goods or services can 

generate revenue internally from these activities. This means that the funds gotten through internal generation are 

not realized through direct Government intervention. Amie-Ogan and Alabere (2020) averred that the purpose of 

internally generated revenue is to augment the often inadequate financial allocation from government in the case 

of public schools; and to minimize the frequency of loans and the loss of fund, the payment of interest on loans, 

in the case of private schools. The sources of this IGR vary such as: pupils’ fees, proceeds from school activities, 

donations from individuals and charity organization, appeal to NGO, PTA, student activity funds and special 

revenue funds, fund raising activities, participation in business ventures, special events, lease income and gifts or 

grants etcetera (Amie-Ogan & Alabere, 2020). The present study focused on renting of school facilities, 



Global Research Journal of Management and Social Sciences (GRJMSS) Vol. 15 (10) 

 

 
pg. 3 

establishing of business ventures and funding raising campaigns as internal revenue generation measures by 

principals in secondary schools. 

Renting out school facilities such as classrooms, halls, playgrounds, and other amenities during non-school hours 

or vacant periods can be a potential source of internal revenue generation for secondary schools. This practice has 

been explored by various researchers. According to Oke et al. (2017), renting school facilities to community 

organizations, businesses, or individuals for events, meetings, or activities can provide a steady stream of income 

for schools. They highlight the importance of establishing clear policies, pricing structures, and maintaining a 

balance between generating revenue and minimizing disruptions to the school's secondary educational functions. 

Apie and Moses (2019) stated that renting of school facilities can be an effective strategy for supplementing 

limited government funding. However, he cautioned that proper management, maintenance and accountability 

measures should be in place to ensure the sustainability and ethical use of these resources. Similarly, establishing 

business ventures is seen as another IGR source. 

Secondary schools can explore establishing small-scale business ventures as a means of generating internal 

revenue. These ventures can range from operating school canteens, bookstores, or producing and selling 

educational materials or souvenirs. Nye and Kpeh (2019) emphasized the importance of aligning business 

ventures with the school's mission, involving stakeholders in the decision-making process, and ensuring proper 

financial management and accountability. Igbineweka and Enowoghomwenma (2017) analyzed the impact of 

school-based enterprises on educational finance and found that when well-managed, these ventures can contribute 

to bridging funding gaps and supporting school improvement initiatives. Same thing can be said of fundraising 

campaign. 

Fundraising campaigns, such as organizing events, soliciting donations, or seeking sponsorships from local 

businesses or organizations, can be a viable internal revenue generation measure for secondary schools. Nye and 

Kpeh (2019) examined the role of fundraising in public schools and found that successful campaigns can provide 

additional resources for various educational programs, facilities, and initiatives. Nwakpa (2016) emphasized the 

importance of developing a strategic plan, fostering community engagement, and maintaining transparency in the 

utilization of funds raised. Amie-Ogan and Alabere (2020) suggested focusing on building strong relationships 

with stakeholders, leveraging existing social networks, and aligning fundraising efforts with the community's 

priorities. However, these views have not been empirically proven to be the internal revenue generation methods 

utilized by principals for raising funds for school management in Anambra State. It is against this background 

that the researcher empirically investigated internal revenue generation methods utilized by principals for raising 

funds for school management in Anambra State. 

Statement of the Problem 

Despite the importance of secondary education in Nigeria, its funding has fallen below expected standard in 

Anambra State. This situation has led to inadequate facilities and resources in secondary schools. The scarcity of 

funding has resulted in classrooms devoid of essential furniture like chairs and desks. Students are often forced 

to sit on the floor or improvise with makeshift seating arrangements, hampering their ability to concentrate and 

participate actively in lessons. This situation not only undermines the quality of education but also poses potential 

health risks, as prolonged sitting on hard surfaces can lead to discomfort and physical strain. Another glaring 

manifestation of the funding crisis is the overcrowding of classrooms. With limited resources to construct 

additional learning spaces or hire more teachers, many secondary schools in Anambra State are forced to 

accommodate an overwhelming number of students in a single classroom. This overcrowding creates an 

environment that is not conducive to effective learning, as teachers struggle to manage large classes and provide 

individualized attention to students. The prevailing conditions in these secondary schools appear to be a direct 



Global Research Journal of Management and Social Sciences (GRJMSS) Vol. 15 (10) 

 

 
pg. 4 

consequence of the poor funding from the government. As public secondary schools, these schools heavily rely 

on government allocations to maintain their operations and ensure the provision of quality education. However, 

the lack of adequate financial resources has led to a deterioration of infrastructure, scarcity of essential learning 

materials, and overcrowded classrooms, ultimately compromising the educational experience of students. It is 

against this background that the researcher empirically investigated internal revenue generation methods utilized 

by principals for raising funds for school management in Anambra State. 

Research Questions 

The following research questions guided the study: 

1. To what extent is establishing business ventures an internal revenue generation method utilized by principals 

for raising funds for school management in Anambra State? 

2. To what extent is fundraising campaign is an internal revenue generation method utilized by principals for 

raising funds for school management in Anambra State? 

3. To what extent is renting out school facilities an internal revenue generation method utilized by principals for 

raising funds for school management in Anambra State? 

Research Method 

Descriptive survey research design was adopted for the study. The study was carried out in Anambra State. The 

population of the study comprised all 266 public secondary school principals in Anambra State. A structured 

questionnaire was used to collect data for the study. The instrument was titled “Questionnaire on Internal Revenue 

Generation Methods Utilized by Secondary School Principals for School Management (QIRGMUSSPSM)”. The 

instrument contains 18 items. The instrument was structured on a 4- point rating scale of Very High Extent (VHE), 

High Extent (HE), Low Extent (LE) and Very Low Extent (VLE). The instrument was validated by three experts 

in the Department of Educational Management and Policy and Educational Foundations, Faculty of Education, 

Nnamdi Azikiwe University, Awka. To ascertain the reliability of the instrument, it was pilot tested on 20 public 

secondary school principals in Enugu State. Application of Cronbach Alpha method on the instrument collected 

yielded reliability coefficient values of 0.87 and 0.85 for clusters 1 and 2 respectively with an overall reliability 

coefficient value of 0.86. The researcher administered the questionnaire to the respondents’ through on-the-spot 

completion and retrieval method was used by personal visits to the respondents on appointment. Out of the 266 

copies of questionnaire administered, 247 copies (representing 93%) were retrieved and used for analysis with an 

attrition rate of only 7%.  The data collected was analyzed using mean. In discussing the mean, any item with 

mean rating of 2.50 and above was regarded as high extent. Conversely, any item with mean rating below 2.50 

was regarded as low extent. 

Result 

Research Question 1 

To what extent is establishing business ventures an internal revenue generation method utilized by principals for 

raising funds for school management in Anambra State? 

Table 1: Mean Responses on  the Extent Establishing Business Ventures is an Internal Revenue Generation 

Method Utilized by Principals for Raising Funds for School Management (N=247) 

S/NO Item Statement Mean Decision 

1. Establishing a cafeteria or canteen 2.32 Low Extent 

2. Rebrannding stationeries for pupils to purchase 2.12 Low Extent 
3. Establishing a poultry farm 2.10 Low Extent 
4. Operating a school bookstore selling textbooks, storybooks etc 2.41 Low Extent 

5. Providing transportation services for pupils 2.09 Low Extent 
6. Building stores for rent. 2.30 Low Extent 
 

Cluster Mean 2.22 Low Extent 
 



Global Research Journal of Management and Social Sciences (GRJMSS) Vol. 15 (10) 

 

 
pg. 5 

Data in Table 1 reveals that the respondents rated items 1-6 as the extent establishing business ventures is an 

internal revenue generation method utilized by principals for raising funds for school management in Anambra 

State with mean ratings ranging between 2.09 to 2.41. The cluster mean of 2.24 indicates that establishing business 

ventures is an internal revenue generation method utilized by principals for raising funds for school management 

in Anambra State to a low extent. 

Research Question 2 

To what extent is fundraising campaign is an internal revenue generation method utilized by principals for raising 

funds for school management in Anambra State? 

Table 2: Mean Responses on the Extent Fundraising Campaign is an Internal Revenue Generation Method 

Utilized by Principals for Raising Funds for School Management (N=247) 

S/NO Item Statement Mean Decision 

7. Launching an annual fund giving where parents, alumni, and community 

members are encouraged to make monetary donations to support the 

school's operations 

3.25 High Extent 

8. Organize events such as inter house sports 3.44 High Extent 

9. Seek financial support from local businesses 3.12 High Extent 

10. Seeking financial sponsorship from philanthropist  3.27 High Extent 

11. Soliciting donations from individuals who are passionate about education 

and the school's mission.  

3.00 High Extent 

12. Promoting planned giving opportunities where supporters can make 

contribute to the school's endowment fund 

2.89 Low Extent 

 

Cluster Mean 3.16 High Extent 

Data in Table 2 reveals that the respondents rated items 7-12 as the fund raising campaign is an internal revenue generation 

method utilized by principals for raising funds for school management in Anambra State with mean ratings ranging between 

2.89 to 3.44. The cluster mean of 3.16 indicates that fundraising campaign is an internal revenue generation method utilized 

by principals for raising funds for school management in Anambra State to a high extent. 

Research Question 3 

To what extent is renting out school facilities an internal revenue generation method utilized by principals for raising funds 

for school management in Anambra State? 

Table 3: Mean Responses on the Extent Renting Out School Facilities is an Internal Revenue Generation Method 

Utilized by Principals for Raising Funds for School Management (N=247) 

S/NO Item Statement Mean Decision 

13. Renting out the school fields for church crusades 3.46 High Extent 

14. Renting out the school classrooms to churches 3.44 High Extent 

15. Renting out classrooms during weekends to organisations offering 

tutoring services 

3.48 High Extent 

16. Renting out the school fields for community league 3.24 High Extent 

17. Leasing school facilities for religious camps during holidays 3.33 High Extent 

18. Rening out school spaces as parking space for events 3.18 High Extent 

 

Cluster Mean 3.36 High Extent 
Data in Table 3 reveals that the respondents rated items 13-18 as the renting out school facilities is an internal 

revenue generation method utilized by principals for raising funds for school management in Anambra State with 



Global Research Journal of Management and Social Sciences (GRJMSS) Vol. 15 (10) 

 

 
pg. 6 

mean ratings ranging between 3.18 to3.46. The cluster mean of 3.16 indicates that renting out school facilities is 

an internal revenue generation method utilized by principals for raising funds for school management in Anambra 

State to a high extent. 

Discussion 

The finding of the study revealed that establishing business ventures is an internal revenue generation method 

utilized by principals for raising funds for school management in Anambra State to a low extent. The finding of 

the study may have resulted because It's possible that some principals lack the training and entrepreneurial abilities 

needed to launch and run successful businesses. Lack of business experience might make it difficult for them to 

recognize good business prospects, create business strategies, and run these endeavors efficiently, which would 

discourage them from engaging in such activities. This finding is in disagreement with Nye and Kpee (2019) who 

reported that establishing business ventures was an internal revenue generation measure for managing schools. 

Amie-Ogan and Alabere (2020) reported that establishing business ventures such as school canteens, bookstores, 

and tutoring services was a common strategy adopted by school administrators to generate additional income. 

Similarly Njau et al. (2022) identified the establishment of school-run enterprises as a prevalent means of 

generating internal revenue. Furthermore, Okoi et al. (2023) stated the significance of entrepreneurial activities 

initiated by school leaders to supplement government funding and enhance financial sustainability.  

The finding of the study revealed that fundraising campaign is an internal revenue generation method utilized by 

principals for raising funds for school management in Anambra State to a high extent. The finding of the study 

might have resulted because fundraising campaigns often involve the active participation of the local community, 

including parents, alumni, local businesses, and other stakeholders. In Anambra State, the strong sense of 

community and the recognition of the importance of education may lead to high levels of support for these 

campaigns. The finding of the study is in line with Amie-Ogan and Alabere (2020) who reported that engaging 

parents, alumni, and the community in fundraising activities are fund raising measures for managing schools. Nye 

and Kpee (2019) stated that fundraising campaigns complement facility rentals as they tap into the generosity of 

donors and supporters beyond rental income. Wakama and Ikechi (2019) suggested that schools that actively 

engage in fundraising campaigns alongside other revenue-generating activities may exhibit greater financial 

resilience. 

The finding of the study revealed that renting out school facilities is an internal revenue generation method utilized 

by principals for raising funds for school management in Anambra State to a high extent. The finding of the study 

may have resulted because compared to other revenue generation methods, such as starting a business venture, 

renting out school facilities generally involves lower financial risk. The primary costs associated with renting 

facilities are maintenance and management, which are often manageable within the existing school budget. This 

finding is in agreement with Nye and Kpee (2019) who found that schools often engage in facility rentals as a 

means of generating internal revenue, particularly in areas where public funding is limited or unreliable. Similarly, 

Njau et al. (2022) stated that the widespread practice of renting out school facilities as a revenue-generating 

strategy, citing case studies where schools successfully utilized this approach to supplement their budgets. 

Furthermore, Wakama and Ikechi (2019) conducted a comparative analysis that revealed schools actively 

involved in facility rentals demonstrated greater financial sustainability compared to those that did not engage in 

such practices. This suggests that renting out school facilities is not only a common practice but also an effective 

strategy for managing primary school finances. 

 

 



Global Research Journal of Management and Social Sciences (GRJMSS) Vol. 15 (10) 

 

 
pg. 7 

Conclusion 

Based on the findings of the study, the researcher concludes that principals employ various internal revenue 

generation measures for managing primary schools in Anambra State. The findings of the study revealed that 

principals to a high extent use renting out school facilities and conducting fundraising campaigns as internal 

revenue generation method. In contrast, the establishment of business ventures as internal revenue generation 

method is utilised to a low extent. Therefore, it is crucial to implement strategies to enhance internal revenue 

generation methods in secondary schools. 

Recommendations 

Based on the findings of this study, the researcher proffers the following recommendations: 

1. The Post Primary School Service Commission (PPSSC) should organize training programme to educate 

secondary school principals on best practices and methods for implementing business ventures as a revenue 

generation method in secondary schools. 

2. Principals should continuously develop and promote school facilities rental avenues for raising funds. 

Schools can invest in improving the condition and attractiveness of their facilities to attract more renters.  

3. Principals of secondary schools should read books and journals on alternative source of fund generation 

for school management. 

REFERENCES 

Amie-Ogan, O.T. and Alabere, I.J. (2020). Managing Internally Generated Revenue for implementation of 

administrators functions in senior secondary schools In Port Harcourt Metropolis of Rivers. International 

Journal of Innovative Social & Science Education Research, 8(4), 150-158. 

Apie, E.M., and Moses, E.G. (2019).Financing Basic Education in Nigeria: The Alternative Methods. 

International Journal of Education, Learning and Development, 7 (6), 10-15. 

Erhagbe. (2014). University education financing in Nigeria: Using Oshodin‟s strategy to convert intangible to 

tangible development. In E. O. Ojeme, & L. I. Salami (Eds.), Transformational leadership in the 

University of Benin. A publication of the Faculty of Education, University of Benin, I3enin City. 

Federal Republic of Nigeria (2013). National policy on education (6th ed.). NERDC. 

Igbineweka, V.O. and Enowoghomwenma, D. E. (2017). Internally generated revenue (IGR) suitability and 

quality assurance in some Nigerian Universities. International Journal of Educational Benchmark, 7(2), 

116-124. 

Nemes, J., Mlaki, E. and Fabian, F. (2019). Effects of income generating activities On primary school pupils’ 

attendance and academic performance. Asia Pacific Journal of Education Arts and Sciences (APJEAS), 

6(2), 64 – 72. 

Njau, L.K., Ogoti, E. & Lyamtane, E. (2022) Assessing the availability of school-based income-generating 

activities in the public secondary schools in Kilimanjaro Region, Tanzania. European Journal of 

Educational and Development Psychology, 10(2), 1-20. 



Global Research Journal of Management and Social Sciences (GRJMSS) Vol. 15 (10) 

 

 
pg. 8 

Nyeh, C. O. & Kpee, G. G. (2019). Generating and allocating internal revenue for public secondary school 

administration in Cross River State. Advances in Social Sciences Research Journal, 6(10) 249-260. 

Nwakpa, P. (2016). Alternative sources of financing secondary education in Ebonyi State by the school 

administrators. British Journal of Education, 4(4), 10-14. 

Oke, T.I., Mainoma, H.M., and Bukar, I.B. (2017).Exploring Alternative Sources of Funding Universal Basic 

Education for Sustainable Development in Nigeria.KIU Journal of Social Humanities 2(2A), 31-38. 

Okoi, I. I., Okon, E. E. and Odok, L. O. (2023). School-based income generation activities and secondary school 

goal attainment: implication for quality assurance in Calabar Education Zone of Cross River State, 

Nigeria. Global Journal of Educational Research, 22, 151-157. 

Orboh, E.S. (2023) Management of internally generated revenue in Nigerian universities: Emergent Issues. 

American Journal of Science Education Research, 133, 1-5. 

Wakama, J. I. K. & Ikechi, C. (2019). Principals’ perception of internally generated revenue strategies for 

financing public secondary schools administration in Rivers State. International Journal of Innovative 

Finance and Economics Research, 7(1),1-9  


