Local Government Tax Mobilization and Utilization in Nigeria: Problems and Prospects By (original) (raw)
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The Implication of Ineffective Utilization of Local Government Revenue in Nigeria
Local governments in Nigeria have developed over a number of years. Historically, the development of direct taxation in local government in Nigeria can be traced to the British pre-colonial period under this period, community taxes were levied on communities (Rabiu, 2004) recently the revenue that accrues to local government is derived from two broad sources, the external sources and the internal source. An effective Local Government system rests majorly on the availability of human and material resources which the nation could mobilize and harness for local governments development. In 1976, the Federal Military Government then issued guidelines on local governments reforms. The reforms which gave recognition to local governments as the third tier of government whereby government activities at the local level were taken care of. In 1988, another reform of local government was established. This gave a substantial and unprecedented reform of autonomy to the local governments in the country. With this autonomy, greater responsibilities devolved on the local government therefore, became a common knowledge that most of the local government are finding it difficult to cope with the present level of responsibilities. In addition to the participation by the local governments with state government in drawing up the economic development policies and programs of the state, local governments should also provide, maintain and control social services at the local government level. Local governments also have responsibility for primary education, agriculture and natural resources, primary health services, construction and maintenance of rural roads and rural market.
Direct Revenue Allocation to Nigerian Local Governments: A Means to National Development
IJRDO - Journal of Business Management
The issue of revenue allocation remains very volatile, crucial and constitutes a major source of political and governmental tension in Nigeria. It has become a subject of hot debate because of the political nature of the exercise. This paper examines the revenue allocation system in Nigeria vis-à-vis the functional and institutional relevance of local government in national development. The paper strongly advocates for a direct revenue allocation to Nigerian local governments; it also identifies roles/functions capable of playing by local governments in national development; and showcases the operational and tactical roles of local government in enhancing national development. Typology of this research work is basically descriptive. Its research method is qualitative. Data for the study came primarily from secondary sources such as textbooks, journals articles, lecture notes, newspapers and academic research projects. This paper reveals the following facts: grassroots’ development i...
THE PROBLEMS OF EFFECTIVE UTILIZATION OF REVENUE AVAILABLE TO LOCAL GOVERNMENTS IN NIGERIA
ABSTRACT When the researcher chose this topic: THE PROBLEMS OF EFFECTIVE UTILIZATION OF REVENUE AVAILABLE TO LOCAL GOVERNMENT, she was inspired by the high rate of embezzlement, poor leadership, low rate of accountability, general laxity of the finance department and corruption in Nigeria Local Government, and Aninri Local Government in particular. To do this, the researcher developed four (4) Questions. This questions were administered inform of questionnaires to 195 staff who were selected as a sample of the population. Apart from this, secondary data were used. In organizing and presenting data collected, tables and percentages were used as well. The data analysis revealed that ineffective utilization of revenue in the local government had created a negative impact in Aninri Local Government Area. The researcher therefore recommended that the revenue available to local government should be handled by honest and accountable personnel, those who posses sound knowledge about revenue generation and utilization. The outcome would be an effective and efficient management and utilization of local government revenue in such a way that would deliver the needed development.
An Assessment of Revenue Mobilization in Nigeria Local Government: Problems and Prospects
Archives of Business Research, 2017
This study assessed the prospects and problems of revenue mobilization in Nigerian Local Governments. It specifically determined the significant impact of development on internally generated revenue of local government in Nigeria; assessed the impact of financial misappropriations on internally generated revenue in the local government in Nigeria. The study employed the use of closed ended and likert scale ranked, wellstructured questionnaire as the source of data collection. The responses of the questionnaire were coded and later analyzed with the use of inferential (multiple regression) statistics. The study revealed that development has significant impact of 21.9% (t= 3.575 and p< 0.05) on internally generated revenue of local government in Nigeria, while financial misappropriation has significant impact of 26.5% (t= 4.668 and p<0.05) on internally generated revenue of local government in Nigeria. The study concluded that the level of development (human and infrastructural) and the rate of financial misappropriation are determinants to the revenue base of Nigerian local governments. It is recommended that Nigerian local government authorities should ensure both human and infrastructural development in their respective constituencies as this is influential on the level of revenue derivation. In addition, local government authorities should ensure a carrot and stick approach whereby members of staff are rewarded on performance and strictly punished for perpetrating financial misappropriations in other to curb the menace of the anathema on the fabric of the society.
The existence of Government primarily to provide services that will make life worth living. Furthermore, local governments as third tier government are created to bring government closer to the people at the grassroots and for transformation of lives at the rural level.The purpose of this paper is to examine local government and the challenges of revenue allocation in Nigeria using Yewa South Local Government as a case study and to probe issues with revenue allocation among tiers of government with focus on the third tier of Government.This study employed both primary and secondary method of data collection. The paper concludes and recommends that state joint local government account should be abolished as it gives state government absolute control over local government.
Journal of Public Administration and Policy Research, 2013
The issue of revenue allocation remains very volatile and constitutes a major source of political and governmental tension in Nigeria. This paper examines the revenue allocation system in Nigeria vis-à-vis the functional and institutional relevance of local government in national development. The paper strongly advocates for a direct revenue allocation to Nigerian local governments; it also identifies roles/functions capable of playing by local governments in national development; and showcases the operational and tactical roles of local government in enhancing national development. Typology of this research work is basically descriptive. Its research method is qualitative. Data for the study came primarily from secondary sources such as articles, textbooks, lecture notes, journals, newspapers and academic research projects. The contents of numerous data gathered are fittingly analyzed. This paper reveals the following facts: grassroots' development is a forerunner of national development; basic social services are mostly needed at grassroots level; local governments afford citizens the opportunities for political participation, political socialization and political education; and local governments are capable of solving the perpetual problems of rural-urban migration, rural transformation and development. This paper assertively concludes that direct allocation of funds to local governments will facilitate promotion of grassroots' democracy, promotion of economic development, good governance, political accountability, agricultural growth and development, transparency, local freedom, accessibility to local needs, responsiveness to local wishes and initiatives, rural transformation and overall national development.
Problems of Revenue Generation in Local Government Administration in Nigeria
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 193 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.
Revenue generation is the nucleus and the path to modern development. Thus, the study was to discuss Local Government and the controversial revenue generation saga in Nigeria: The demurrals and wayforward. The discussion is indeed necessary because local government as the third tier of government and the closest to the people especially in the rural areas needed revenue to provide basic social amenities to the people. But it is unfortunate to note that the local government management have not lived up to expectation especially to provide basic social amenities to the rural people. Thus, the objective of the research was to analyze the challenges facing Local Government in the area of revenue generation and how it affect development of Local Government in Nigeria. The researcher used secondary methods of data collection to generate the needed data. The following were some of the findings which included poor development of the areas, lack of basic social amenities to the rural people and lack of revenue to maintain the existing infrastructures. The researcher therefore recommended that the local government should provide basic amenities of high quality. By doing so, the people's interest would be geared towards giving their maximum support to the local government which would lead to the development of the rural area.
Local Revenue and Services in Nigeria: The Case of Ogun State Local Governments
Annals of the Social Science Academy of Nigeria, 1992
This paper examines the links between the financial resources of local governments and the availability of local services. It also examines the 'equalisation effect' of grants from higher levels of government on resource disparities between local government areas. It was found that intergovernmental (financial) transfers do not necessarily eliminate need-resource gaps in local government areas. The existence of these gaps, in spite of grants from higher levels of government, implies that the allocation of grants negates an important objective of intergovernmental transfers, viz. to adjust for disparities in fiscal capacity among local jurisdictions caused by variations in resources, tax bases and population.