Internal Revenue Generation and Security Expenditure amidst Armed Banditry in Sokoto State Nigeria

Abstract

Alhaji Kabiru, Shehu Mohammed, Yuhanazu Ahmed and Luba Adamu Kwazo

This study examines the impact of security expenditure on internal revenue generation amidst armed banditry in Sokoto State, Nigeria. Using the PMG model with panel data of seven selected local government areas in the state, the study found a negative impact of security spending on internal revenue generation. The study also discovered a positive impact of the interaction term of security expenditure and armed banditry on internal revenue generation in the state. The study recommends higher security expenditure in the state in the midst of armed banditry for the smooth running of businesses and increasing revenue generation in the state.

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