THE NEXUS BETWEEN INTERNALLY GENERATED REVENUE, ECONOMIC GROWTH, AND INFRASTRUCTURE ENHANCEMENT IN DELTA STATE, NIGERIA

Abstract

This study investigates the nexus between internally generated revenue (IGR), economic growth, and infrastructure enhancement in Delta State, Nigeria, for the period of 2008 to 2018. Using the Ordinary Least Squares (OLS) regression analysis, we examine the impact of IGR on government expenditure in the health and education sectors, focusing on infrastructural development. The data for this study were sourced from a combination of published materials and data from the Delta State Ministry of Finance.

The study findings reveal that IGR has an insignificant impact on government expenditure in the health sector, indicating that the revenue generated internally within the state has not led to significant improvements in health infrastructure spending. However, in the case of education infrastructure, the study shows a significant positive impact of internally generated revenue on government expenditure, suggesting that Delta State's IGR has indeed contributed to the development of educational infrastructure.

This research provides unique insights into the utilization of internally generated revenue for infrastructure development in Delta State. Based on our findings, we recommend that the government allocate a minimum of 40 percent of IGR to financing the health sector through improved budgetary provisions. Additionally, the Delta State government should implement measures to enhance the total revenue generated internally, including levying and collecting appropriate taxes, to further boost infrastructural development.