INTERNAL AUDIT AND REVENUE GENERATION IN NIGER STATE INTERNAL REVENUE SERVICE: EVIDENCE FROM A CROSS-SECTIONAL SURVE
Keywords:
Control Activities, Internal Audit, Information and Communication, Monitoring Activities, Niger State Internal Revenue Service, Revenue GenerationAbstract
Revenue generation remains a vital tool for every nation as the main source for financing the country's budget. Despite the existence of internal audits in government revenue-generating agencies, challenges including revenue loopholes, weak internal controls, lack of compliance with regulations, and absence of audit independence reduce the efficient revenue generation. This study examines the relationship between internal audit and revenue generation in the Niger State Internal Revenue Service. The study employed a cross-sectional research design. The population comprised 296 staff, and the sample size covered the entire population. The study employed the census sampling technique, and data were gathered using five-point Likert scale structured questionnaires. The study used Cronbach's alpha coefficient with a 0.7 threshold to measure the reliability of the response. The data were processed using STATA 17 version and analyzed using ordinary least squares regression. The findings revealed that internal audit and information and communication have a negative insignificant relationship with revenue generation in the Niger State Internal Revenue Service. The study also found that control and monitoring activities have a significant negative relationship with revenue generation in the agency. The study concluded that reforming internal audit, information and communication, control activities, and monitoring activities are essential for operational efficiency and can significantly enhance revenue generation. Based on the findings, the study recommended that the agency should ensure systematic reform in internal audit independence, robust control activities, effective information and communication, and regular monitoring activities by ensuring full implementation of new systems, thereby minimizing fraud, enhancing transparency, restoring accountability, and promoting efficient revenue generation.
References
Adegbite, T. A., & Fasina, H. T. (2019). Taxation and revenue generation in Nigeria: International Accounting and Taxation Research Group, 3(1), 82-92. Retrieved from http://www.atreview.org
Adetula, D. T., Abalogun, S., Uwajeh, P., & Owolabi, F. (2020). Internal control system in the Nigerian tertiary institutions: Innovation management and education excellence vision 2020. Regional Development to Global Economic Growth, p4505-4508.
Afolabi, C. S., Ogunleye, J. K., & Olukoya, O. A. (2020). Effect of internal control systems on the financial performance of deposit money Banks in Osun State, Nigeria. World Journal of Innovative Research, 9(1), 59-66.
Agbenyo, W., Jiang, Y., & Komlah, P. C. (2018). Assessment of government internal control systems on financial reporting quality in Ghana: A case study of Ghana revenue authority. International Journal of Economics and Finance, 10(11), 40-50. doi:10.5539/ijef.v10n11p40
Agbo, I. S. (2022). Information and communication technology (ICT) as a tool in revenue generation and tax administration: A Study of Federal Inland Revenue Service Ebonyi State, Nigeria. Global Journal of Computer Science and Technology, 3(22), 7-10.
Akhmetshin, E. M. (2017). The system of internal control as a factor in the integration of the strategic and innovation dimensions of a company’s development. Journal of Advanced Research in Law and Economics, 6(28), 1684 – 1692. doi:10.14505/jarle.v8.6(28).03
Akinleye, G. T., Olaoye, C. O., & Ogunmakin, A. A. (2019). Internal audit and revenue generation in the public sector: Evidence from developing economies. Journal of Accounting and Taxation, 11(3), 45–56.
Akuro, P. P. (2020). Social internal control mechanisms and revenue generation in Rivers State Internal Revenue Service. Art and Social Science Journal, 1(10), 1-8. Retrieved from doi:10.4172/2151-6200.1000431
Aliyu, A., & Mustapha, S. (2020). Challenges of internally generated revenue in northern Nigeria states. African Journal of Public Administration, 8(2), 77–89. Federal Inland Revenue Service (FIRS). (2022). Annual report and financial statements. Abuja: FIRS.
Allahverdi, M., & Kuzucu, S. C. (2017). E-Transformation process of Azerbaijan tax system and the effect to tax revenue. Innovatıon and global issues in socıal scıences extended abstracts book, Antalya.
Annette, S. (2019). COSO internal control integrated framework: An implementation guide for the Healthcare provider industry governance and internal control. MBA Thesis, University of Narobi. Retrieved from https://www.communicationtheory.org/control-theory/
Audited Financial Statement of Niger State Government (2022). Report of the state auditor general on the accounts of the government of Niger State for the Year ended 31st December 2022.
Audited Financial Statement of Niger State Government (2023). Report of the state auditor general on the accounts of the government of Niger State for the Year ended 31st December 2023.
Berger, T. M. M. (2025). IPSAS Explained: A Summary of International Public Sector Accounting Standards. Revenue from Exchange Transactions. Japan, 2nd Edition.
Bruno, A. (2018). Internal control systems and revenue collection: A case of Uganda revenue authority, Bushenyi Branch, Uganda. A Masters Dissertation. Kampala International University.
Byrne, B. M. (2016). Structural equation modelling with AMOS: Basic concepts, applications, and programming (3rd ed.). Routledge.
Cantwell, B. (2019). Are international students’ cash cows? Examining the relationship between new international undergraduate enrollments and institutional revenue at public colleges and universities in the US. Journal of international students, 5(4), 512-525. Retrieved from doi:https://doi.org/10.32674/jis.v5i4.412
Daniel, E. K. (2018). Role of auditors in fraud detection and prevention in deposit money bank in Nigeria. Conference Proceedings Managing National Economic Recovery, 7(2), 173-187.
Daoud, J. I. (2017). Multicollinearity and regression analysis. Journal of Physics: Conference Series, 949(1), 012009.
Federal Inland Revenue Service (2022). FIRS 2022 performance update report. Abuja, Nigeria: Federal Inland Revenue Service.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2018). Multivariate data analysis (8th ed.). Cengage Learning.
Ganyam, A. I., Ivungu, J. A., & Anongo, E. T. (2019). Effect of tax administration on revenue generation in Nigeria: Evidence from Benue State tax administration 2015-2018. International Journal of Economics, Commerce and Management, 7(7), 394-414.
Hyera, D. W., Kadigi, M. L. & Ndyetabula, D. W. (2025). Internal control systems and the revenue collection performance among local government authorities (LGA) in Tanzania. Journal of policy and development studies, 4(1), 1-15. https://doi.org/10.51317/jpds.v4i1.676
Ibrahim, N. A. (2020). Effect of internal controls on revenue collection at Kenya revenue authority, Kenya. A Research Project, Jomo Kenyatta University of Agriculture and Technology JKUAT.
Institute of Internal Auditors, (2004). The role of internal audit in enterprise wide risk management. Retrieve from https/www.theiia.org/guidance/standards-andpractices/positionpapers/current-positionpapers
Kiplangat, D. S. (2016). Assessment of internal control systems effects on revenue collection at Nakuru level five Hospital. MBA Thesis, Jomo Kenyatta University of agriculture and technology.
Kline, R. B. (2023). Principles and practice of structural equation modeling (5th ed.). Guilford Press.
Kumari, K. A. H. M., & Weerasooriya, W. M. R. B. (2019). Impact of effective internal control implementation on private commercial bank’s financial performance: Special reference to central province of Sri Lanka. International Journal of Scientific and Research Publications, 9, 405-417. Retrieved http://dx.doi.org/10.29322/IJSRP.9.12.2019
Lukinda, J., & Tlegray, J. B. (2022). The impact of internal control on revenue collection: The case of Tanzania official seed certification institute in Morogoro Municipality. Current Journal of Applied Science and Technology, 41(3), 25-31. Available at doi:10.9734/CJAST/2022/v41i331656
Mohammed, A. (2018). Effect of internal control on revenue collection in Kintampo municipal assembly. MBA Dissertation, University of Cape Coast.
Musongole, M. (2023). Assessing the effectiveness of internal controls on revenue collection & management; a study of Malawi police service. International Journal of Humanities Social Science and Management (IJHSSM), 2(3), 31-38
Mutua, G. M. (2023). Effects of internal control components on revenue generation among corporations. Africa Journal of Commercial Studies, 2(1), 1-11. doi:https://n2t.net/ark:/69431/AJoCS.v2i1.1
Njagi, A.W. (2018). Effect of internal controls practices and revenue collection of level five Hospital in Kiambu County in Kenya. Masters Dissertation. University of Nairobi.
Njagi, M. (2023). Independence of Internal Auditors: Significance, Guidelines, and Influencing Factors. East African Finance Journal, 1(2), 56 – 63. DOI: 10.59413/eafj/v2.i1.8
Nkechi, M. A., & Onuora, J. K. J. (2018). Effect of internally generated revenue on infrastructural development of south east states of Nigeria. International Journal of Economics and Business Management, 4(7), 1-10.
Okidi, M., Akello, J. A., & Opio, B. C. (2021). Internal control system and revenue collection in local governments: A case study of Lira district local government. Research Journal of Finance and Accounting, 12(14), 47-56. doi:10.7176/RJFA/12-14-05
Okoye, E. I., & Gbegi, D. O. (2013). Effective internal control system and revenue generation in Nigeria. International Journal of Business and Management Invention, 2(6), 60–70.
Olaoye, C. O., & Afolabi, T. S. (2020). Internal audit quality and revenue generation in Nigeria public sector. Journal of Accounting and Financial Management, 6(1), 15–28.
Organization for Economic Cooperation and Development (2023). Revenue statistics 2023. Paris: OECD Publishing.
Oshioma, O., & Aimuan, E. (2017). Impact of information and communication technology (ICT) on efficiency in Edo state civil service. University of Benin Journal of Administration and Development, 2(1), 102-118.
Owolabi, T., & Ogan, T.P. (2022). Business Growth and Internal Auditing. International Journal of Economics, Management, Business and Social Science (IJEMBIS), 2(1), 22-33. https://cvodis.com/ijembis/index.php/ijembis/article/view/43
Pallant, J. (2020). SPSS survival manual: A step by step guide to data analysis using IBM SPSS (7th ed.). McGraw-Hill Education.
Salawu, R.O., Odesola, O.T., & Gidiga, J.O. (2024). Internal control system and revenue generation: evidence from an emerging economy’s research institute in Nigeria. Open Journals of Management Science, 1 (5), 1-17. Retrieved at DOI: 10.52417/ojms.v5i1.553
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). John Wiley & Sons.
Shaban, O. S., & Barakat, A. I., (2023). Evaluation of internal audit standards as a Foundation for carrying out and promoting a wide variety of value-added tasks evidence from emerging market. Journal of Risk and Financial Management, .16(185), 1-13. https://doi.org/10.3390/jrfm16030185
Thyaka, F. V., & Kavale, S. (2021). Effects of internal controls on revenue collection: A case of Kenya revenue authority. The Strategic Journal of Business and Change Management, 8 (1), 347 – 363.
Tobin, J. M. (2024). What is GAAP in accounting? Generally accepted accounting principles: A Guide.
Umar, H., & Dikko, M. U. (2018). The effect of internal control on performance of commercial Banks in Nigeria. International Journal of Management Research and Review, 8(2), 13-32.
Wambui, M. M. (2020). Effect of internal control systems on efficient revenue collection at the National transport and safety authority.
World Bank. (2021). Nigeria public finance review: Strengthening domestic revenue mobilization. Washington, DC: World Bank.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License, which permits unrestricted use, distribution, adaptation, and reproduction in any medium, provided that the original work is properly cited.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors are permitted to post their work online in institutional/disciplinary repositories or on their own websites. Pre-print versions posted online should include a citation and link to the final published version in Journal of Librarianship and Scholarly Communication as soon as the issue is available; post-print versions (including the final publisher's PDF) should include a citation and link to the journal's website.
