Revenue generation in local government areas: problems and prospect

Thesis Overview

<p> </p><p><strong>INTRODUCTION</strong></p><p><strong>1.1 STATEMENT OF PROBLEM</strong></p><p>Local government council as third and last tier of government is faced with this primary function of bringing as close as possible the impact of government to people of a particular locality. Impacts such as government regulatory policies government protected service government development projects e.g. road net work hospitals school markets pipe borne water etc.</p><p>This primary function of the local government has in recent times faced a lot of set back due to insufficient revenue emaciating from the councils liability to generate (internal) revenue from the local dwellers. This problem cannot be over- emphasis as it has become a major concern to both he state and federal government</p><p>In relation to the above stated problem the researcher will be investigating on why and how this problem can be tackled for be tackled for better efficiency of the local government.</p><p><strong>1.2 RATIONALE OF THE STUDY</strong></p><p>This study “Revenue generation in local government Areas is considered necessary for various essential reasons. As a matter of fact since we all know that development of any area depends on the revenue generated. This revenue generation in local government area enables the area to carry out some development project such as electricity water and road construction project etc.</p><p><strong>1.3 SIGNIFICANCE OF THE STUDY</strong></p><p>The inhabitants of the various local government areas of the nation (NIGERIA) will have the course to enjoy the affirmative results to certain extent of all or part of these problems to re3venue generation in local government are properly tackled. Hence such myriad of problem of revenue generation which also gives rise to untold hardship will generally be under control or a thing of the past.</p><p>This will become a tool for most local government area to a speedy set-up of some strategies which will enable them to generate their revenue easily and as well as executing their project effectively. This study will be of paramount significance to the society mostly to those students in school of financial studies (banking &amp; finance) who are making or intending to carry out research in the problems that confront most local government in Nigeria on revenue generation.</p><p>This will also give potential market men and women as well as other residence of various local government areas to comply with their respective local government councils as regards payment of tax rates charges etc.</p><p>Finally it will enable the researcher to have an in-depth knowledge of the study. Therefore the significance of this study is by no virtue exhaustive.</p><p><strong>1.4 DEFINITION OF TERMS</strong></p><p><strong>· TAXATION:</strong>&nbsp;This is one of the ways local government generation revenue. It is a compulsory levy imposed by the local government on most of the entire members of the society who are capable of paying tax or who are expected to pay tax.</p><p><strong>· PERSONAL INCOME:</strong>&nbsp;This is a form of direct tax which is levied on the wages salaries and other earnings of individuals. In assessing this kind of tax certain allowances (wife children dependent relative allowance etc) are deducted this balance is then taxed to determine this amount to be paid as tax.</p><p><strong>· LOAN:</strong>&nbsp;loan can be described as financial aid with interest payable. Sometimes local government borrow money in from of loans from other bodies like: bank, state government federal (if possible) etc to enable them execute their project when they are in short of fund. However this loan is payable at a given interest rate over a specified period of time.</p><p><strong>· RENT &amp; ROYALTY:</strong>&nbsp;these re payment made to the local government body by hose who make use of local government properties such as : Land, building e.t.c</p><p><strong>· GRANTS:</strong>&nbsp;Grants are said to be financial aids without interest. This implies that grants are forms of gift granted to local government by a body (federal state or any other body without paying back.</p><p><strong>· CHARGE FINES &amp; FEES:</strong>&nbsp;These are among the means of generating revenue by the local government they are payments made to local government by those who indulge in one commercial activity or the other. Such fees are: motor licensee fees road/bridge tolls market fees e.t.c</p> <br><p></p>