Neco Model Questions Vol1 2021 Government Question 14

The Local Government Act stipulates that at least \(30\%\) of a local government's total annual revenue must be derived from internally generated revenue (IGR). In 2022, the revenue of Riverine Local Government was as follows: - Federal allocation: ₦120 million - State allocation: ₦80 million - Internally generated revenue: ₦50 million - Grants from NGOs: ₦10 million During 2023, the local government implemented a market revitalisation programme that increased its IGR by \(40\%\) but caused a \(10\%\) reduction in the federal allocation (due to a performance‑based cut). All other revenue sources remained unchanged. (a) Calculate the total revenue for 2023. (b) Determine the percentage of the 2023 total revenue that is IGR (rounded to two decimal places). (c) Based on the constitutional requirement, does Riverine Local Government meet the \(30\%\) IGR threshold in 2023? Answer "Yes" or "No".