Effect of Boko Haram insurgency on Economic and Market Sources of Internal revenue generation in Maiduguri Metropolitan Council, Borno State

Abstract

Boko Haram-induced insurgency has posed one of the greatest constraints to business activities in North Eastern part of Nigeria and particularly, Maiduguri metropolis in Borno state. This has led to the closure of many businesses and the relocation of others, reducing the revenue generation potentials in Maiduguri Metropolitan Council (MMC). Accordingly, this study examined the effect of Boko Haram insurgency on market and economic sources of internal revenue generation in MMC by relying on the perceptions on the entire 356 staff of the Local Government's Treasury Department. The specific categories under both the market and economic sources of revenue in Maiduguri Metropolitan Council were identified. Subsequently, the reported average amount of revenue in the period before and during insurgency were examined. Descriptive and inferential statistics were employed in addressing the study's objective. Using paired sample t-test, the study found that insurgency generally reduces the amount of both market and economic sources of revenue generated internally in MMC. However, taxes from hotel registration; an aspect of the economic source of internal revenue, stood out as the only category whose collection has not declined despite insurgency in the state. As such, the amount of revenue generated from this source did not decline even in the period characterized by insurgency. The study concludes that the business environment is still sluggish and thus suggests government to do more in revamping the private sector