Description
ABSTRACT
Every local jurisdiction has its unique economic, social and physical characteristics and its historical tradition which are better understood by its people. Thus, the Local Government Areas are created to provide the services which the Federal and State Governments cannot easily undertake due to their remoteness from the local communities. Therefore, the concept of local government is to bring governance closer to the people at the grassroots, with the aim of caring for the socio-economic and development needs of local populace. Over the years, it has been observed that massive rural-urban migration and over congestion are heating up lives in the cities. Others have contended that Local Governments are docile in terms of aggressive revenue collection to augment allocations from the federation account which they get on monthly basis. Yet, others hinged Local Governments’ abysmal revenue generation on dishonesty on the part of council revenue collectors, who, in most cases, misappropriate collections made on behalf of the council. In the face of these charges or allegations, it has become pertinent to investigate why Local Governments in the country have poor revenue generation efforts. The thrust of this paper therefore is to find lasting solutions to the financial problems hindering local governments in Nigeria, most especially strategies to ameliorate the over-dependence on Federal Government allocation for the up-keep of the Local Government. The paper also recommends amongst others, that any official who divert local government funds to their personal purse should be punished in accordance with the law of the land, use of council staff for revenue collections should be encouraged and stop using agents who are not council staff. The paper concludes that undoubtedly, for Local Governments to be able to perform these functions creditably, they need sufficient funds.
TABLE OF CONTENT
COVER PAGE
APPROVAL PAGE
DEDICATION
ACKNOWLEDGEMENT
TABLE OF CONTENT
1.1 INTRODUCTION
1.2 CONCEPT OF REVENUE GENERATION
1.3 SCOPE AND LIMITATION OF THE STUDY
1.4 AIM OF OBJECTIVE OF THE STUDY
1.5 THE IMPORTANCE OF THE STUDY
1.6 CONCEPTUAL MEANING OF THE TERMS USED
1.7 ORGANIZATION OF STUDY
CHAPTER TWO
2.1 INTRODUCTION
2.2 THEORETICAL FRAME WORK
2.3 CURRENT TRENDS IN THINKING
2.4 PRINCIPAL AIM OF LOCAL GOVERNMENT
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 INTRODUCTION
3.2 SAMPLE AND POPULATION OF THE STUDY
3.3 SOURCES OF DATA
3.4 METHEOD OF DATE ANALYSIS
3.5 THE RESEARCIT PROBLE:-
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS
4.1 INTRODUCTION
4.2 BRIEF HISTORY OF THE CASE STUDY
4.3 PRESENTATION OF DATA
.CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 SUMMARY
5.2 CONCLUSION
5.3 RECOMMENDATIONS
CHAPTER ONE
INTRODUCTION
1.1 INTRODUCTION
Revenue generation simply means raising funds in the most economic and suitable manner. The history of revenue generation in Nigeria is traceable to eighteen century before the coming of the British, when the Fulani Empire was in place, when the emirates were divided into districts and village and when the hakims districts heads were made tax collectors.
Hakims is were to collect different types of taxes such a Jangali live stocks tax land tax Kharey, and the capitation tax called Gandu in Cowry. Shells currency for the Gmir who was more or less the government.
Lugard and the subsequent native revenue ordinance of 1917 could be said to be the evolution of revenue generation of the modern local government administration system of the north. Though the amending ordinance passed in 1918 extended the provision of 1917 to the south Nigeria, it was only to impose tax on all taxable adults and individual residents in the colony are a composed of Lagos, Epe and Ikorodu, the jurisdictional area of the administrator of the colony.
However in 1927 another legislation was enacted which imposed tax on all native adult and non-native alike in Nigeria.
Today neither the orthodox method of revenue generation nor the native authority system of local government in the north and south exist.
The Nigeria local government reform of 1976 has made the modern local level in deed. Now it is a government exercised through representative council of the local citizens, established by law and strengthened with specific power of substantial control over affairs, institution staffs and finance for the initiative and direct the provision of service and also to determine activities of federal and state governments in their areas as well as to ensure through devolution and through activities participation of people and tradition that local initiatives and responses to needs and conditional are maximized.
Based upon these premises in which the modern local government’s abodes it needs to be viable for it to achieve the objectives and purposes as assigned to it by the constitution. The viability of local government in turn depends not only of the nature of power apportion to it in the political system of the society as well. Local government to perform it’s function and to control it’s affairs.
Consequently it is imperative that everybody is involved that the entire people, all able bodied citizens of the council area involved and mobilized to participate in the local generation of funds for good government and the council activities effective local development. And effective local development is local participation, which is the active involvement of the local populace in the local fiscal policy formulation and execution.
1.2 CONCEPT OF REVENUE GENERATION
Revenue as define by Oxford Advanced learner’s dictionary of current English is income especially the total annual income of the state, government department which collects money for public fund. As related to local government, revenue is any income, proceeds or returns accruing or derived from the higher levels of government of from any other operation of law or source including.
- Any receipt however described, arising from the operation of law.
- Any return however described, arising from or in respect of any property held by the local government.
- Any return by way of interest on loans and dividend for share or interest held by the local government in any company or statutory body.
Revenue generation is the art of securing for money or funds to accurate to the local government from taxes and rates, fees from licenses permits, charges from commercial services, loan and grants statutory allocations from federal or state government and any other sources not here specifically mentioned but not of which the public expenses are defrayed.
1.3 SCOPE AND LIMITATION OF THE STUDY
The study is limited in scope to Oke-Eru Local Government Area of Kwara State. The study provides an insight into the various sources of revenue to the local government, the types of revenue machinery, it’s method of collection, administration efficaciousness and otherwise as well as problems and prospect.
1.4 AIM OF OBJECTIVE OF THE STUDY
The purpose of writing this project is to highlight the problems, challenges or hindrances and prospects associated with revenue generation generally and in Oke-Ero local government is the extent of its financial independent even when more public goods and services and demands, become necessary for the society to love averagely comfortable its ability to control most of it’s financial resources has a great deal to do within its capacity to discharge competently its function. Next .to this fact is that for local government to be able to execute the functions allocated to it by the constitution as the third her government efficiently, it must have not only executed capacity and discretionary power but also adequate finances.
Since most of these functions and service cannot lend themselves easily to individual ownership because of the huge capital out lay necessary for their execution, it thus requires, team efforts greatly from the locality, federal government and from state government who should be frank in the part it plays to pull resources together for local government so as to provides these indispensable goods and service that require colossal sum of money for their provision.
As a result of the solution to the perennial financial crises faced by local government can only be found in efficient and effective generation of revenue.
The general principles is to provide an sight the general altitude of the people of this local government can only be found in the course of revenue collection and to give meaningful advice and various recommendations on how these problem can be overcome so as to ensure the effectiveness collection of various revenue in local government.
The write up will show the efforts made by the local government to reduce the problems encountered during revenue generation and prefer some useful suggestions or recommendation on how to effectively and efficiently generate more revenue for the local government to enable it implement it programmes for which it was establish.
1.5 THE IMPORTANCE OF THE STUDY
The fact remains that local government is the basic cell of the series of the decision making levels of a nation. But the fact also remains that Nigeria local government councils are severally limited by paucity of financial resources. This situation makes it important for every student of public administration and local government management that want to engender ways out of the poverty.
This work being an engagement in these directions wills surely benefits sets of policy formulation policy implementers’ public managers and local government employees. The various issues that are reviewed employees. The various issues that are reviewed or analyzed and recommendations that are preferred shall certainly be of good assistance to the people in their official engagements. The research work may also benefit future research work may also benefit researchers in their fields serving as source of references for their works.
1.6 CONCEPTUAL MEANING OF THE TERMS USED
Effective Operation: Effective operations are operations that optimally served the objective themselves are optimal in relation to higher objective.
Efficient operation: these are operation in which the various of out put produce to resources used, is the highest desirable one under the prevailing circumstances. That is the those operation in which the optimal processes are employed to convert resources available into services and goods they are intended to produce.
Special grants: special grants are made and tied to important national or state economic or social programme to be handled by the local government.
Revenue allocation: revenue allocation is a mechanism or a system where by the local government has a direct share of its specific item or the total nationally derived revenue.
Statutory allocation: these allocations are by both the federal and state government in principle statutory allocation are intended to cover both recurrent and capital requirement of local government.
Special rate: these are rates levied every adult in a local council area for special purpose such as education and water supply. Some people call it development rate.
Flat rate tax: it is a common rate levied upon every male adult in a local council area payable only once in a year.
1.7 ORGANIZATION OF STUDY
The study is organized and divides into five unequal chapter for a better understanding and for an easy development of point so as to drive the fact embodied in the topic home clearly.
Chapter one: this chapter is the background of the study. It is the introduction into the topic (local government administration and revenue generation). The chapter of revenue generation, scope and limitation of the study aim and objective of study, type of research method used and the importance of the study aim and.
Chapter two: this is the literature review just as the title portrays, it consists of the reveiew of ideas, views and opinions of some other authors asa related to the write up so that they can shed more light on the discuss for instance Geoff and sean honan gave us an insight into what revenue generation, policy on revenue generation the (principals aim of local government reforms as related to revenue.
Chapter three: this chapter is mainly about the historical background of oke-ore area, the people, their local government and the structure of the local government. It tries to explain to a single manner, the history, and composition, cultural heritage of the people, their religious beliefs ceremonies tourism attractions in the land and the functions of their principles officers alike.
Chapter four: this is the analysis and interpretation of idea which are apprising the over whelming financial dependence of local government on federal and state government finding. The chapter went further to explain the legitimacy of self dependence through internally generated revenue duties of collectors, sources of revenue open to oke-ero local government and problem of revenue generation in oke-ero council area.
Chapter five: this chapter deals extensively on what it takes to change the trends of financial dependences of the local government to a better financial position of self – reliance and financial buoyancy.
REFERENCES
Anyawu u.d local government administration (1996-120) awolola f.o public financial management student companion (1997:2)
Oladosu s.a Kaduna essay in local government (1981:135)
Ajayi .r. local government reform under president babangida (1995:53).
Oxford advance learner’s dictionary of current English (1974:725)
Local government law (1983:12).
CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION
The major sources of government revenue is by taxation yet it cannot do without some other minor sources of revenue that are opened through persons who are made to contributes part of their income with a specific amount for the purpose of administration and development of the society. This can be defined as a compulsory payment levied by the government not imposed by any legal offenses but
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