Internally generated revenue igr and infrastructural. Of economics, university of ibadan research proposal introduction local governments are potentially very important for nigeria as they play a significant role in generating revenue and encouraging civil. Tobansiochiogu 1994 sees taxation as a levy imposed by the. Alao, esther monisola babcock university, ilishan remo, ogun state abstract revenue generation is a major source of income to nigeria and the states in general, even though it. These are the statutory allocation from the federation account. Volatility of internally generated revenue and effects of. Revenue generation and utilization of local government.
Nigeria is the ever dwindling revenue generation, discernible from budget deficits and paucity of. Problems of revenue generation in local government. If they are able to bring all taxable businesses into the tax net, they can survive outside oil. Revenue generation and utilization of local government areas includes abstract and chapter one, complete project material available revenue generation and utilization of local government areas a case study of umuahia north local government abstract revenue generation is the nucleus and the path to modern development. Revenue generation in local government councils in nigeria. Local governments in nigeria receive statutory allocations from the two higher tiers of government federal and states. Scope of the study tax revenue generated by the federal government of nigeria and tax revenue generated by some selected states were obtained in order to assess the impact of taxation on revenue generation by the federal government of nigeria and by some selected states in nigeria from 20022011. This study assessed the effects of internally generated revenue on infrastructural development in akwa ibom state. Revenue generation and local government administration in nigeria. Revenue generation involves the gathering of resources for the benefit of the society revenue generation in nigeria faces with so many challenges. These problems accounts for why the local government. Local government and challenges of revenue allocation in nigeria a study of yewa south local government, ogun state phillip musa department of public administration, the federal polytechnic, ilaro, ogun state, nigerian. Historically, the development of direct taxation in local government in. In the light of the above, the focus of this essay is on revenue generation in local government councils with particular reference to ikenne local government, ikenne.
Olalekan eyitayo ajibade department of political science and international relations. This page provides nigeria government revenues actual values, historical data, forecast, chart, statistics. Thus, the local government cannot embark, execute and possibly carryout the maintenance of these projects and other responsibilities without adequate revenue generation. This is because the state as the second tier of government needs revenue to. 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 overdependence on federal government allocation for the upkeep of the local government. Nigeria has three tiers of government systems, these are.
Get free research paper on the impact of poor revenue generation on the development of local government areas in nigeriaproject topics and materials in nigeria. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. Revenue generation in local government areas problems and prospects includes abstract and chapter one, complete project material available revenue generation in local government areas problems and prospects abstract the adverse situation in the various local government areas of nigeria has led the researcher to go into this very. Without revenue generation, government at all levels may not. Local governments in nigeria are recognized as a tier of government by the 1999 constitution, as the most responsive to the needs of the people in terms of political participation and development. According to franzsen and semboja 2004, prior to rationalization of taxes, 20 percent of local governments own revenues came from development levy. Nigeria depends on crude exports for about 70 per cent of government revenue and more than 90 percent of foreign exchange.
Revenue generation is the nucleus and the path to modern development. Local government internal revenue generation in nigeria. Pdf internal revenue generation and economic development. Revenue generation in local government areas problems and. They are also statutorily entitled to 10 per cent of states internally generated revenue.
Pdf revenue generation in lagelu local government area of. A case study of obafemiowode local government submitted by dairo isaac kunle dept. Problems of revenue generation in local government african. With the drop of the price of brent crude by more than half since peaking in june 2014, the ability of the fgn, sgs and lgs to deliver on their election promises is greatly undermined. All the 3tiers of government have to vigorously pursue tax revenue and other financial sources for their survival, as a matter of reality. Thus, revenue generation is also expected to be fundamental to the attainment of capital expenditure goals in nigeria. Funds are allocated to them from the federation account and subventions from state governments together with its internally generated revenue. Sources of government revenue in nigeria nigerian finder. The increasing cost of running government coupled with dwindling revenue has left various local governments in nigeria with formulating strategies to improve. So we work with all the stakeholders making sure that we can support government. Pdf problems of revenue generation in local government.
This work will embrace an examination of the internal and statutory source to the total revenue. Journal of public administration, finance and law issue 102016 55. Problems of revenue generation in local government administration in nigeria. Generally, a substantial part of the revenue of the federal, state and local government of nigeria is realised from taxation but theres more to government earnings than just taxation. Revenue generation and utilization of local government areas. In such situation, we decided to conduct a research into revenue generation and utilization of local government system in nigeria using udi local government of enugu state as a case study. Data for the study were gathered from facetoface interview, available records in iwo local government, text books, lecture notes, journals, reports, seminar presentation and internet materials. Between 2010 and 2017, the average government revenue in nigeria is n833. Nigeria government revenues 20102019 data 20202022. The abolition of local government revenue sources in 2003 had a significant negative impact on local government revenue collections. Kiabel and nwokah 2009 corroborate this idea by saying that the dwindling revenue and increased cost of running government require all tiers of nigeria government to look for alternative means of improving their revenue.
Scholars generally agree that local governments in nigeria face diverse problems in generating revenue. Pdf this paper examined sources of tax revenue and its utilisation in lagelu local. The revenue generation system in the state requires sound leadership in the board of internal revenue, good revenue driven policy, transparent tax revenue consulting and innovative approaches by the labour force for improved revenue system. The purpose of this study is to investigate on the impact of revenue generation is local government administration in nigeria with enugu north local government area as a case study. Government willingness to address the prevailing issues would enhance stability in the revenue generation. In nigeria, it is a factor to be reckoned with in federal government s.
Vat and revenue are some of the most important sources of funds for the government. Local governments in nigeria have developed over a number of years. This is the basic reason why development is skeletal at some local government councils in nigeria. What is the importance of vat and revenue generation in nigeria. Department of public administration, the federal polytechnic, ilaro, ogun state, nigerian. Revenue generation profile of local government councils in cross river state local government generates revenue from two main sources. Firs generated n4tr tax revenue in 2017 vanguard news. Local governments are potentially very important for nigeria as they play a significant role in generating revenue and encouraging civil involvement, as well as creating a visible link between taxes and service delivery. It also examined the relationship between revenue generation and service delivery. Local government authorities can also generate revenue apart from the statutory allocation. Vause and human relations approach of elton mayo et al. Internally generated revenue of nigerian states trends.
This is approved for students in accountancy, business, computer science, economics, engineering, arts. Additionally, avoidance of tax by the private sectors and rich individuals raises a fundamental challenge to revenue generation and local government admini stratio n in nigeria. The study was based on the theoretical foundation on financial management theory approach by r. Strategies for improved revenue generation in local. The major reason objective of local government are to make appropriate service and development activities responsible for local wishes and initiatives by developing or delegating local government representative bodies and to facility the exercise of democratic self government close to the local level of our contemporary society and encourage initiative and leadership potentials generally. Revenue generation and capital expenditure in selected. Pdf this study examined internal revenue generation and economic development in local government areas in nigeria. Revenue generation in nigeria local governments is principally derived from tax.
Pdf internal revenue generation and economic development in. Revenue generation and collection in nigeria local government. Revenue generation and local government administration in. Of economics, university of ibadan research proposal introduction local governments are potentially very important for nigeria as they play a significant. Dandago and alabade 2000 described revenue as an income required by governments to finance its growing expenditure. Fgn federal government of nigeria fmf federal ministry of finance gems growth and employment in states lga local government authority. Tax is however, a compulsory levy imposed by government on individuals. A critical success factor in local government using the balanced scorecard alao, david oladimeji, ph.
Internal revenue generation and economic development in local government areas in nigeria article pdf available in imperial journal of interdisciplinary research ijir 35,2017. Adamolekum 1976 new local government system in nigeria. Nigeria runs a federal system of government that consists of three tiers, that is, the federal, state and local governments. The adverse situation in the various local government areas of nigeria. Despite the arrangement made for local government reform in 1976, the issue of revenue generation and utilization continues to be serious problem.
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