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
Title page
Certification
Dedication
Acknowledgements
Table of content
CHAPTER ONE
- Introduction
- Statement of problems
- Purpose of the study
- Scope of the study
- Organization of student
CHAPTER TWO
- Literature review
- Definition of the term
CHAPTER THREE
- Research methodology
- Research design
- Population of the study
- Sampling method and size
- Research method used
- Source of data collection
- Statistical technique used in analysis data
CHAPTER FOUR
- Data presentation and analysis
- Method of data anlysis
- Historical background of Ifelodun local government
- Analysis of data
- Problems toward the achievement of effective revenue generation in Ifelodun local government
- Solution to the problem of revenue generation in the local government
CHAPTER FIVE
- Summary
- Recommendations
- Conclusion
INTRODUCTION
The creation of more states from the former region of Nigeria in 1967 and 1976 respectively, was aims at bringing the government closer to the people at the grass root level. It was also aimed at solving the problem of distance and remoteness of the seat of the central or state government from the local people.
In the same vein, the creation of more local governments thorugh the country in 1976, following the recommendation of the Udoji public service review commission of 1974, was a set forward in encouraging full local participation in the art of government upon which the state and the federal government is to be built.
Local government in Nigeria are created to provide efficient social services to the local communities in the most economical ways out of the limited revenue which are being collected from the communities inform of taxes, rate feex profit from commercial undertakings and other miscellaneous earnings.
Inspite of the fact that the 1975 local government reform has invariably established a united local government system, more declaration was made in the budget speech of 1st January 1991 by president Babangida that, local government will be accorded full administrative autonomy and allowed to operate in accordance with split and a letter of the constitution and direction by the state or federal government the discharge of these constitutional responsibilities. The subvention will come to them directly. However, more responsibilities have been given to the local government.
“The full ones and responsibility of providing the basic needs including primary education for their communities are now on them”.
Apart from the above spelled out functions there are other already established functions and since the primary aim of setting up local government council is to bring the administration closer to the people. It the follows that more service attention is to be paid to the communities
For instance provisions of basic health facilities, provision of assess roads, for the farmers and traders to beringtheir product to the market centers and going about their trading activities.
There are still lots more to be leant from the mistakes problems and achievements regarding the operation of the system in the various local government areas. It is principally a sainst this background that professional administrations, councilors and individual in the whole past of the country may find if useful to understand the operative system of local government revenue generation elsewhere in Nigeria.
The general public will also like to know how their councils obtain much needed revenue and how such revenue is generated for the development of their localities.
Furthermore, the students of local government and administration cannot afford to continue studying the structure of state of federal government finance without having interests in a vital aspect of the structure which is local government revenue generation.
This project work is therefore intended to provide road information on the system used by our local government councils in their revenue generation in KwaraState.
The Ifelodun Local government shall be the area of study in Kwara state of Nigeria.
- STATEMENT OF THE PROBLEM
The effectiveness efficiency and survival of any local government depends on the functions, finances and staffs, including the authority that may be granted to it by the enabling laws of the state and federal government.
This study is therefore, intended to examine the relationship between the spelled out constitution of the federal republic of Nigeria 1979 and that of local government revenue and revenue generation included in the president budget speech of 1st January 1991 page 7 respectively.
Is shall among others study the origin of revenue generation objectives of revenue generation, source of revenue, problem of revenue generation if Ifelodun local government and recommendation shall be givesn as to the ways by which effective generation of revenue can be made in the Ifelodun Local government.
1.3 SCOPE OF THE STUDY
One of the importance of this study is to extend the sphere of knowledge to the direction of Ifelodun local government “the relation between the varied revenue sources and the effectiveness of it generation” since limited study on this topic and issue has been done in this “remote” direction.
This study will not only identify the obstacles militating against effective revenue generation in Ifelodun local government, but also provide suggestive solution to them.
While this study will be of particular value of the general readers, local government practitioner’s and training institutions concerned with local government in developing countries, it is hoped that students of local government who read it will derive more benefits from using it.
1.4 ORGANIZATION OF THE STUDY
It is a paper collated into five chapters in which chapter one is on the general introduction to the topic, which states the statement of the problems and purpose of the study. Other things discussed in chapter one include scope of the study.
Chapter two deals with the review of some literature on Ifelodun local government area and definition of the terms.
Chapter three of research work is on research methodology historical background of Ifelodun local. Government, origin of revenue generation, objectives of revenue generation, policy of revenue generation, objective of revenue generation, policy of revenue generation and the administration, the functions of local government source of revenue in the local government and function of revenue section in the finance department of the local government.
Government control of local government by central government the solutions to the problems of revenue generation in the local government and roles and advantages of credit institutions of local government (revenue).
The last chapter deals with the summary of the research work conclusion and recommendation respectively.
CHAPTER FIVE
- RESEARCH FINDINGS
The aim of the study is to examine the relationship between the local government revenue generation and the sources of the revenue with the laid down rules. It is also aim at providing the readers with a broad information on the policy of revenue generation and the administration with the laid down function of revenue section the finance department of Ifelodun local government Area.
This study examined the problems encountered forewarned the achievement of effective revenue generation in Ifelodun local government and workable solutions to the problems of revenue generation in the local government shall be highlighted.
Varied, revenue sources have been allocated to local government by both the federal and the state government.
Its hope that with an effective and efficient management of those sources taping of the financial resources, local government would be able to execute the much needed rural development programme of their areas wheather these functions are actually being performed adequatelely, and or whether the revenue sources available to the local government particularly in Ifelodun local government are being the major questions that agigate the winds of the people in general.
5.1 SUMMARY
The native authority was the unit of local government this country. The aim in establishment of the native amalgamation of 1914.
Was to formalize the country customary power of the chiefs as well as to oblige them to use the powers for the maintenance of law and order.
The local government reforms of 1976 was introduced by the Obasanjo’s regimes because the administration was satisfied that they were desirable and crucial to the success of the political programme of the country.
The local government reform of 1976 and 1988 therefore meant to user in final solution to the above mentioned proble,s hence, elevated to the state of being the third her of government in Nigeria, it is mounted to changing the old system in order to;
- Mobilized human and material resources through the involvement of members of the public in their local government
- To provide a two-way channel of communication between local communities and government (state and federal)
The reform was designed in such a way to take care of all detected of they previous local government system in terms of financial affective.
Political supervision and proper accountability, which Ifelodun local government is among. Some items which are the responsibilities of the local government includes, the provision of markets, motor park sanitary waste, slaughter slap, recreation centers park etc. in order to reduce the financial problem of local government the federal government promise to give out more 10% of the annual recurrent expending as a financial laid through the state government.
5.2 RECOMMENDATIONS
Local government, particularly in Nigeria is confronted with myriad of problems. Among them are financial problem, corruptions among officials, lack of qualifies personnel, economic in ability of some local government insufficient staffs, grossly efficient system collecting rate and lately unnecessary interference by the central government.
- Financial problem: To carry out their functions properly and efficiently, local government needs money to operate, despite the fact that they received grants from central government and to generate their own sources of revenue yet many local government face financial difficulties, this is borne out of the fact that citizens do not pay their levies regularly. Therefore, in taking this problem, government should come up with a law and decree of enforce the people.
- Insufficient staff: It has been stiupulate about that some people always prefer to work in the urban centers to work in the local government areas where some basic social amenities must be provided to encourage the young school levels to work in the local government areas.
GROSSLY INEFFICIENT SYSTEM COLLECTING RATES AND TAXES
The machinery and system of collecting rates is grossly inefficient noiceas been made to be meaningful, there is need for the council to have reasonable degree of financial independence, the current situation where by local government depend heavily on external source particularly on statutory allocation from the federation account for their finance is not in the best interest and stability of the councils.
The high reliance of local governments on statutory allocation based on the fortunes of oil revenue, need drastic reduction. Along this line, the revenue base on local government should be broadened and strengthened for the local government to effectively carry out increased responsibilities.
To end this some source of revenue currently being collected by state government should be transferred to the local government such as paye, tax collected within the local government areas, tax on small-scale industries and business enterprises registration of business enterprises, registration building plan to mention a few.
The essence of improved collection machinery of local government is to enable the councils have enough financial strength and ability to be able to meet the yearning and aspiration of their people particularly toward the execution of their capital development projects and programme.
It is therefore appropriate that the local government should now consider all these problem any other peculiar to the individual councils and therefore find permanent solutions to the problem so as to be able to enhance a rapid socio-economic development at the grass root.
Rate assessors and tactollctors are poorly educated, corrupt and inefficient and most cases do not return to the officers of the local government the required revenue collected. In addition, many local government authorities do not have proper method of assessing the property rate.
They do not employ qualified hands like the quantity surveyors toassess the value of buildings.
The system of houses to house collection of taxes from the communities must be established in order to make sure that taxpayers did not evade the payment of taxes.
UNNECESSARY INTERFERENCE BY THE CENTRAL GOVERNMENT
This happens especially when government parties tries to use the local council to achieve their aims.
More so several project planed by local government cannot be executed without the formal approval of the central government and state government this lead to delay in the execution of certain important project which may be tailored towards raising the standard of living of local people.
Conclusion
In this with up, I have tried to identify the general problem militating against effective revenue collection, which may vary in local government.
Them general situation revenue collection effort in most of the local government.
Have been examined, possible solution to the problems have also been suggested.
It should be put in place however, that if the autonomy of the local government of which so much.
