Effect of Internally Generated Revenue on Socioeconomic Condition in North-western State in Nigeria

This study examined the effect of Internally Generated Revenue (IGR) on socioeconomic conditions in Northwestern Nigeria, a region characterized by widespread poverty, unemployment, limited fiscal autonomy, and institutional challenges. Using Structural Equation Modeling (SEM) as the main analytical technique and ordinal logistic regression as a robustness test, the study assessed how improvements in internally generated revenue contribute to socioeconomic development across the states. The SEM results showed that IGR had a positive and statistically significant effect on overall socioeconomic conditions, indicating that enhanced revenue generation can support poverty reduction, employment creation, improved demographic management, stronger fiscal autonomy, and better responses to external socioeconomic pressures. The model explained 81.2% of the variation in socioeconomic conditions (R² = 0.812), demonstrating strong explanatory power. The ordinal logistic regression results confirmed the robustness of the findings, producing consistent direction and statistical significance. The study concludes that strengthening IGR is essential for improving socioeconomic wellbeing in Northwestern Nigeria. It recommends enhanced tax administration, broadening of the revenue base, improved accountability, investment in productive sectors, and the effective allocation of public revenue toward social and economic development. The findings provide useful insights for policymakers and development stakeholders seeking to promote sustainable socioeconomic progress in the region.

Internally Generated Revenue, Socioeconomic Conditions, Northwestern Nigeria

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