Assessment of Risk in the Internally Generated Revenue (IGR) Structure of Abia State, Nigeria

Philips O.O. Nto


The study assessed risk in the Internally Generated Revenue structure of Abia State, Nigeria. The specific objectives included (I) estimation of factors and significant input variables influencing risk in IGR structure of the State and (II) examination of risk reducing practices. Data which were collected from 50 management staffs of revenue yielding Ministries, departments and agencies in Abia State were analysed with factor analysis, Tobit regression analysis and descriptive statistics. The results of the factor analysis grouped the significant input variables which scored 0.33 and above into institutional and non-institutional sources of risk while that of Tobit regression analysis revealed that significant variables which cause variation between expected and realised IGR of the State are lack of database; mismanagement of fund by government; delay in payment of revenue by tax payers; difficulty in tracking tax evaders; and weak internal control mechanism. The results point to the fact that policy on tax identification number (TIN) should be strengthened and linked to the bank account of the tax payer so that relevant revenues are deducted at source.


Assessment; Risk; Internally generated; Abia State

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