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Budget transparency and internal revenue mobilisation at sub-national government level: evidence from Nigeria

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  • Mohammed Aminu Yaru

    (Department of Economics, University of Ilorin, Ilorin, Nigeria)

Abstract

Internal revenue mobilisation by governments at the sub-national level has been low in Nigeria. In view of the rise in the level of budget transparency at the subnational level in recent times, this study examines the hypothesis that improved budget transparency leads to greater revenue mobilisation. The study adopts both cross-sectional and panel regression analyses based on data for 2015, 2018 and 2020. The findings suggest that the hypothesis that improved budget transparency improves revenue mobilisation cannot be rejected, but population density (urbanisation), poverty and unemployment are the dominant factors that explain revenue mobilisation by the state governments in Nigeria. The study also reiterates the need to control corruption in order to make sustainable progress in revenue mobilisation at sub-national level.

Suggested Citation

  • Mohammed Aminu Yaru, 2022. "Budget transparency and internal revenue mobilisation at sub-national government level: evidence from Nigeria," Public Sector Economics, Institute of Public Finance, vol. 46(4), pages 505-531.
    • Handle: RePEc:ipf:psejou:v:46:y:2022:i:4:p:505-531
    DOI: 10.3326/pse.46.4.4
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    References listed on IDEAS

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    More about this item

    Keywords

    tax; revenue; budget transparency; sub-national government; Nigeria;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue

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