BACKGROUND OF THE STUDY
Nigeria has three tires of government in line with the federal system of government. The federal system is the first followed by the state government as the second tier and the local government as the third tier. It came into existence in the year 1900. When the British indirect rule was introduced. Consequently each tier of government has its sphere of functional competence and influence. However, constitution has provision within which they can generate revenue respectively. The creation of local government was vested on the federal government and however seen as an effective channel to reach out to the citizens at the grass root. It is also vested with the responsibility of maintaining law, justice, peace and order as well as bringing some basic social service and public amenities to the grass root. Thus, to encourage corporate participation of habitants towards improvement of their standard of living and development of those areas, the need for the levle of government to enjoy the monopoly of self independence, thus, establishing enough fund internally and externally.
Bello Iman (1922) emphasized the relevance of finance to the development of every levy of the government. Thus stated that finance is the sinew of war for all functional organization in any economy consequently in implies that for the local government in particular to meet its mandate to individual s and groups who consume is output of public goods and services, the relevance of revenue generation should not be undermined.
The realization of local government goals have been characterized with several problems ranging from lack of adequate revenue base, manpower shortage rate, evasion fraud, malpractices amongst local government officials and poor response of the federal and state government in carrying out their statutory obligation towards the local government. Meanwhile, the primary function and purpose of local government are strictly in form of service supplied to the development of the economy. Such economic services are very imperative in the day to day activities. As a matter of fact the effective and efficient function of their administration is determined by certain factors. Hence it is observed that the relevance of revenue Have been a subject of conflict since the creation of local government in Nigeria. Thus the researcher seeks purposely to attempt looking into the various sources of revenue accruing o the local government and mostly how this revenue are managed and controlled internally and above all how they influence the development of this local government at large. Over the years it has been observed that local government has constituted a great problem in respect to the internally generated revenue and how they are managed, consequently several practitioners and expert has attempted to resolve through seminars and conferences. It is further state that success or failure as well as effectiveness or ineffectiveness of local government administration is dependent on financial resources available to respective local government and the way these resources are been managed or used.
On the 14th of December 1996 the Abacha administration created six (6) new additional states. This brought the total number of state to 36 state in Nigeria. Following this development new local government were also created. Consequently the number of local governments was increased from 574 to 774 (seven hundred and seventy four) presently. Delta state is one of the states in which new created local government area were created. One of the newly created local government in Delta State is Ndokwa West in kwale. It was created on the 27th of August 1991 by the Bendel state which is the study area. It generates its revenue from various sources these includes taxes, fees, fines property rate and grants from state and federal government allocations which are used in carrying out its obligation of providing some basic social and economic services to the people.