CHAPTER ONE
- INTRODUCTION
1.1 BACKGROUND OF STUDY
One of the greatest problems facing local government administration in Nigeria today is unarguably finance. Essential, this is needed for the execution of their statutory functions. It is now an established fact that funds from the existing traditional sources (internal, external and loans) are for one reason or the other inadequate to cope with present-day demands of governance. Also, it has been discovered that those officials entrusted with revenue collection of the local government treasury are not competent. Again, companies and individuals shy away from declaring their real profit(s) at the end of every fiscal year, thereby making it difficult for tax officials to know how much tax they should pay.
In this work, I will examine various sources of revenue generation and strategies to be adopted so as to improve revenue generation. Efforts will also be made to proffer suggestions on ways of revenue improvement where possible, though no matter the strategies or suggestion(s), successful revenue generation depends on the treasurer, the chief Accounts Officer, revenue Officials and the effective leadership of the local government Chairman.
- STATEMENT OF THE PROBLEM.
The purpose of this work is to find out various sources and strategies for improvement of local government revenue in Abia State with special reference to Ohafia L.G.A. the collection and revenue generation has been one of the main problems of local government in the state. The inability of local governments to generate their own internal revenue collection aroused the curiosity of the researcher to investigate into the remote causes and proffering suggestion where necessary.
- OBJECTIVE OF THE STUDY
The objective of this work is to help the policy makers, officials and administrations of local government as well as students of local government and public administration on the general finance of any local government. A thorough understanding of this work, will surely lead to the initiation of action towards improving our local government administration. We will adopt a multidimensional approach of empirical analysis for the advantages of the users. This work will also find and expose those influences that constitute problems to the topic under study.
- RESEARCH QUESTIONS
The local government system as a third tier of government in Nigeria is charged with enormous responsibilities as contained in the fourth schedule of the constitution of the Federal republic of Nigeria (1999). These responsibilities require availability of enough revenue to discharge it.
The inability of local government to raise their own internal revenue and the difficulty associated in revenue collection aroused the curiosity of the researcher to investigate into the remote causes and proffering suggestions where necessary.
Specifically, I will examine the following questions:
- Why do local governments source for revenue?
- Are there any known sources for revenue?
- Will the revenue help in providing the necessary infrastructural needs of the local people?
- Who manages the revenue of the local government?
- Does a federal and state government allocation prevent local governments from sourcing for more revenue?
- Is federal and state government the major sources of local government revenue?
- SIGNIFICANCE OF THE STUDY
The sources and strategies for improvement of local government revenue is an interesting and researchable topic. This work will enable the local government executive to know the various ways the council generates its revenue and thereby putting him in a position to make enabling decisions on how to use the hard earned revenue.
Infact, the topic under study is part of business studies. This study will highlight the problems that militate against revenue collection in Abia State. It will also serve as a parameter to other people who may wish to contribute their own ideas to this topical issue. The society and indeed the local people will benefit a lot from the study.
- SCOPE OF THE STUDY
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