Boosting Internally Generated Revenue in Local Government: Signage and Advertisement Revenue as an option for Consideration

Abstract

Internally Generated Revenue (IGR) constitute a small fraction of total revenue in most Local Government (LG), this has been a major factor to persistent insufficient funds experienced in LG. Constant paltry revenue in LG has led to inefficient service delivery and also perceived to have adversely affected LG performance and budget implementation. Therefore, there is need to diversify the IGR base of LG, this calls for study on how to boost IGR in LG with focus on Signage and Advertisement Revenue (SAR). Studies have been conducted on IGR, but not many studied the effect of SAR on IGR. Therefore, this study examined the probable effect of SAR on IGR of LG in Lagos State, Nigeria. The study employed exploratory research design. Secondary data were extracted from Auditor’s General Report 2015-2021, these were analysed with descriptive and inferential statistics at 5% level of significance. The study revealed that SAR positively have effect on total IGR (Adj.R2=0.713431, F(1,7)=347.0494, p=0.000). The study concluded that SAR has significant effect on IGR of local government and that SAR contribute maximally to total IGR of LG. The study further recommends that mechanism for enhancing IGR in LG should be entrenched while revenue automation is critical for efficient signage and advertisement revenue generation. LG should also ensure that IGR are invested on provision of goods and services that would enhanced citizens’ trust and payer revenue compliance. In addition, policies should be put in place to make IGR a priority for stimulating LG growth and development.