Internally Generated Revenue in Local Government: The Role of Signage and Advertisement Agency

Abstract

Internally Generated Revenue (IGR) is vital to the total funds of Local Government (LG) for financing LG expenditures. IGR plays an important role in good governance but constitutes a small fraction of LG's total revenues. However, IGR losses and untapped revenues are very common in LG. This is perceived to have adversely affected LG funds. Many studies have been done on IGR, but not many focused on the role of Signage and Advertisement Agency (SAA). This study examined IGR and the role of agents in revenue generation, using Lagos State Signage and Advertisement Agency (LASAA) as a case study. The study employed an explanatory research design. Secondary data on LASAA revenues generated for LGs were used. Descriptive statistics of data analysis were employed. The study revealed that LASAA as an agent of LGs generated ₦13.69 billion for the years covered. Similarly, generated revenues increased by 138.68% in 2021 over 2015 figure. Also, the study revealed that the creation of SAA in the state for revenue drives and control of outdoor advertising has been an added value to LG funds for providing goods and services. The study recommends that SAA should design appropriate assessment methods that would be acceptable and affordable for payment by all payers. LGs should ensure that signage revenues are invested in public goods and services. This would enhance the standards of living of the citizens and also build payers' trust for voluntary compliance. Additionally, LASAA should increase its public awareness and enlightenment on the importance of signage and advertisement payment to all stakeholders.