INTRODUCTION Economic performance in every nation is enhanced through adequate revenue generation at all levels of the government. In Nigeria there are three tiers of government charged with the responsibility to generate revenue internally to supplement the allocation from the federation account. The statutory allocation from the federation account in Nigeria is not sufficient to achieve the overall economic performance targeted in the nation at large, therefore, it is the responsibility of government at all levels to devise strategies to exploit revenue opportunities in their jurisdiction. The inability of many state governments in the country to generate sufficient revenue internally has been a big obstacle to their economic development. The misuse of the IGR for political settlements is also a big challenge in Nigerian States. For this period of 36 years under review, statistics have it that the IGR accruing to the Federal, States and LGAs are N2,927.80, N6,827.69 billion and N405.22 billion respectively (CBN Statistical Bulletin, 2016). Apart from Lagos and Rivers States that have huge IGR, many other states depend so much on the federation account. This undue dependence on federal allocation has hindered economic development in various States in Nigeria. In the light of these problems, the study seeks to determine the impact of internally generated revenue (IGR) of the three tier of the government on the economic performance of the country. The study examines the impact of internally generated revenue (IGR) of the three tiers of government oneconomic performance in Nigeria. Inability of the various levels of the government to exploit IGR sources and over dependence on allocations from the federation account has affected economic performance in Nigeria. The specific objectives of the study are basically to establish the influence of internally generated revenue of the federal, state and local governments on per capita income in Nigeria. Therefore, the study made use of annual time series data which spanned from 1981-2016 and were obtained from CBN Statistical Bulletin, CBN Annual Reports and World Bank website. The data were collected on Per Capita Income(PCI), Federal Government Independent Revenue (FGIR), State Government Internally Generated Revenue (SIGR) and Local government Internally Generated Revenue (LIGR). Ordinary Least Squares (OLS) method was employed to carry out the multi-regression analysis with the aid of e-views version 9. The result indicated that FGIR has insignificant positive impact on PCI while SGIR and LGIR have significant positive impact on PCI. Based on these findings, the study suggests that government at all levels should put more efforts in taking advantage of all IGR sources within their domain in order to achieve the desired economic goals in the country. ABSTRACT INTERNALLY GENERATED REVENUE AND NIGERIA'S ECONOMIC PERFORMANCE Key Words: Internally generated revenue, per capita income, economic performance, government, Nigeria CORDELIA ONYINYECHI OMODERO, JOSEPH UCHEBELONWU AZUBIKE & MICHAEL CHIDIEBERE EKWE Department of Accounting, College of Management Sciences, Michael Okpara University of Agriculture, Umudike, Abia State, Nigeria. E-mail: cordeliaomodero@yahoo.com; 224 AE-FUNAI JOURNAL OF ACCOUNTING, BUSINESS AND FINANCE(FJABAF) www.fujabf.org ISSN:2635-392X Alex-Ekwueme Federal University Ndufu-Alike Ikwo Ebonyi State Nigeria