Background of the Study
Internally Generated Revenue (IGR) is essential for state governments to achieve fiscal independence and sustainable development. However, Nigerian states face significant challenges in maximizing IGR, often relying heavily on federal allocations (Abdullahi & Musa, 2024). These challenges include inadequate tax base, low compliance, and weak enforcement mechanisms.
Kano State, one of Nigeria's most populous states, grapples with similar issues. Despite its economic potential, IGR remains underwhelming due to factors such as informal sector dominance, lack of public trust, and insufficient infrastructure (Danjuma et al., 2023). Addressing these barriers is critical for improving Kano State's financial stability and ability to deliver public services effectively.
Statement of the Problem
The over-reliance on federal allocations in Kano State has exposed its vulnerability to economic fluctuations. Weak IGR systems result from inefficient policies, corruption, and a poorly structured revenue collection framework. This situation has led to inadequate funding for critical sectors such as healthcare and education (Suleiman & Ahmed, 2025).
Despite various reform initiatives, the persistence of these challenges underscores the need for a detailed examination of Kano State's IGR framework. Understanding the root causes of inefficiencies will enable policymakers to develop targeted solutions for sustainable revenue growth.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
The study is focused on IGR challenges in Kano State, analyzing revenue policies, administrative systems, and taxpayer behavior. Limitations include limited data availability and difficulty in assessing informal sector contributions.
Definitions of Terms
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