Agricultural Revenue Accounting and Fiscal Sustainability of Ebonyi State Government

Ebonyi State's endowment with significant agricultural resources presents an opportunity for diversifying state revenue beyond statutory federal allocations, yet the adequacy of existing agricultural revenue accounting frameworks in capturing and channeling these resources to the state's fiscal base remains under-examined. This study examined the impact of agricultural revenue accounting practices on the fiscal sustainability of Ebonyi State Government, covering the period from 2018 to 2023. The study was grounded in fiscal federalism theory, which addresses revenue sharing, own-source revenue development, and inter-governmental financial accountability. An ex-post facto and descriptive research design was adopted. Secondary data were sourced from Ebonyi State Ministry of Agriculture reports, the Accountant-General's annual accounts, and Central Bank of Nigeria state fiscal data. Variables analyzed included internally generated agricultural revenue, agricultural levy collections, and fiscal balance ratios. Data were analyzed using descriptive statistics, trend analysis, and ordinary least squares regression. Findings revealed that agricultural revenue contributed less than 12 percent of Ebonyi State's total internally generated revenue across the study period, with significant recording and remittance gaps identified. Agricultural revenue growth was positively correlated with improvements in fiscal balance ratios. The study concluded that poor agricultural revenue accounting undercuts the state's fiscal sustainability potential. It was recommended that the Ebonyi State Board of Internal Revenue should establish a dedicated agricultural revenue unit with enhanced monitoring and e-collection systems.

Keywords: Agricultural revenue accounting, fiscal sustainability, internally generated revenue, fiscal federalism, Ebonyi State