Modeling the relationship between Internally Generated Revenue and Statutory Allocation in Akwa Ibom State:- Bassey, Nnammonso E

ABSTRACT

This study examined the relationships that exist between the Internally Generated Revenue and Statutory Allocation in Akwa Ibom State. Quarterly time series data ranging from 2000q1 to 2020q4 was collected from the audited report of Akwa Ibom State internal generated revenue. The ordinary least square method of regression analysis was employed to analyze the data. The results show that internally generated revenue has a significant and positive effect on statutory allocation in Akwa Ibom State. The result further reveals that internally generated revenue account 21% for the total variation in the statutory allocation. The recommendation is that state government should strive to improve Akwa Ibom State internally generated revenue to ensure availability of funds for infrastructural facilities, since revenue from the federation account may not be sufficient for such purpose.