EFFECT OF INTERNALLY GENERATED REVENUE ON BASIC EDUCATION SERVICE DELIVERY IN KADUNA STATE, NIGERIA

This study examines the effect of internally generated revenue (IGR) on basic education service delivery in Kaduna State, Nigeria. Despite significant fiscal reforms and IGR growth exceeding 70% between 2015 and 2020, the state continues to experience educational deficits including inadequate classroom infrastructure, teacher shortages, and poor learning outcomes. The study objectives were to: (i) examine the effect of IGR on education facility adequacy and teaching resources; (ii) assess the relationship between IGR performance and education service quality; and (iii) determine the extent to which IGR influences overall education service delivery in Kaduna State LGAs. A quantitative survey design was adopted, with structured questionnaires administered to 344 respondents across nine purposively selected Local Government Areas (LGAs) representing urban, semi-urban, and rural contexts. A composite index measuring education facility adequacy, teaching materials availability, teacher quality, student outcomes, and service accessibility was regressed against internally generated revenue (IGR) performance indicators using Linear Regression Analysis. The analysis revealed that IGR significantly and positively affects basic education service delivery, explaining 33.7% of the variance in education outcomes (R² = 0.337, p < 0.001), with a standardized coefficient of â = 0.580. For every one-unit increase in IGR performance, education service delivery improves by 0.652 units. Post-estimation diagnostics confirmed model validity (Variance Inflation Factor = 1.000), satisfying key regression assumptions. The study concludes that internally generated revenue is a critical determinant of education service quality at the grassroots level, with important implications for fiscal decentralization policy and education sector financing in Nigeria. Recommendations include strengthening revenue administration systems, establishing dedicated education financing mechanisms, and enhancing accountability structures to maximize IGR impact on education outcomes.