Legal challenges in the administration of internally generated revenue by states in Nigeria: The case of Lagos and Kwara
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Date
2022
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Faculty of Law, Kwara State University, Malete
Abstract
The state governments in Nigeria are faced with dwindling revenue in the face of growing responsibilities. Thus, it is forced to improvise because of the increasing gulf between revenue and expenditure. One of the ways of improvisation is the introduction of new taxes and the upward adjustment of the older taxes’ rates. Several levies and fees were also introduced by the states to shore up its revenue deficit. These taxes, levies and fees are termed Internally Generated Revenue (IGR). This study investigates the legal challenges in the administration of IGR in two selected states in Nigeria. The selected states are Lagos and Kwara. The basis of this selection is twofold. Firstly, to compare two states, one each from Southern and Northern Nigeria. Secondly, to examine the legal challenges faced by these two states, Lagos, being a state that has the highest IGR in Nigeria and Kwara, as a state that generates substantial IGR in Northern Nigeria. The methodology adopted is doctrinal, although some staff of the states’ Internal Revenue Services were interviewed. The study found that though there were many sources of revenue but the most reliable and enduring source is taxation. It further found that taxes and other revenue sources are besotted with varied legal as well as other challenges which militate against compliance. Also, the desperation of the states made them to promulgate laws that ultra vires their powers. The study recommends that the state should make laws within their powers and also assess the taxpayers’ ability to pay.
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Citation
Animashaun, O.O and Abdulhamid, O.Y (2022): Legal challenges in the administration of internally generated revenue by states in Nigeria: The case of Lagos and Kwara, KWASU Law Journal, 3(1): 182-195, Published by Faculty of Law, Kwara State University, Malete