Does sub‐national government revenue have an effect on socio‐economic and infrastructural development in Nigeria? A geographical analysis

Abstract

Given the geographical variation in socio-economic and infrastructural development in Nigeria, this study examines the possible effect of the different sources of sub-national government revenue across the country. This is in contrast to previous studies that are either based on individual unit level of analysis or examined the relationship between the aggregated composition of government revenue with socioeconomic and infrastructural development in the country.

Federal government tax independence, statutory quota and capital investment

“…Other revenues, which included donations from municipal councils for the accomplishment of collaborative projects, as well as donations and support from local and international governments, suggested a favorable but small link. According to Adeleke et al [ 29 ], sub-national public funds was densely deployed, with federal distribution accounting for the majority of sub-national state spending, implying weak internal cash flow production by states. The observations of Odinakachi et al [ 30 ] revealed that the central government conserved money; non-oil earnings and recurring spending were sufficient to explain the link with output growth term, but infrastructure investment was not.…”