ABSTRACT
The
primary objective of this study is to ascertain the strategies of increasing
and improving revenue generation for development in the Nkanu East local
government area of Enugu state. The theories upon which the study is anchored
are the Structural Functionalism Theory, the Efficiency Theory and the
Functional Theory. The population of this study comprised of the staff of Nkanu East local government, which is a total of one
hundred and nine (109) persons. A sample size of eighty six (86) was drawn
using the Taro-Yamane (1967) statistical formula. Data for the study was
collected using self-administered questionnaires. The method of data analysis
utilized in the study was the frequency tables and percentages. Findings from
the analysis revealed that the strategies adopted in generating revenue in
Nkanu East are not sufficient; the primary challenges facing the efficiency of
revenue generation for development in Nkanu East Local Government Area of Enugu
state include corrupt practices among revenue collectors, and lack of education
and enlightenment by the local government to the citizens on the need for them
to pay their annual rates and fees to the local government; and the level of
revenue generation has made no significant impact on the development of Nkanu
East Local Government Area of Enugu state. It is therefore the recommendations
of this study that modern strategies should be adopted to enhance the internal
revenue generation in the local government; that adequate measures should be
adopted to curb the tide of financial corruption among revenue collectors in
the local government; and, that the revenue generated should be made to impact
positively on the development stride of the local government area, among
others.
CHAPTER ONE
INTRODUCTION
1.1
Background of the Study
Local government is
recognized by the 1999 constitution of the Federal Republic of Nigeria as the
third tier of government within the tripartite federal structure of governance
in Nigeria, with the state and federal government as the super ordinate
government. The government in Nigeria which exists at tripartite arrangement
(federal, state and local government) plays complimentary roles to each other
to meet the needs of the people which include infrastructural facilities
(Okpata 2004).
Furthermore, local
government is seen as a public sector organization, the third tier government
with assigned functions and responsibilities, administrative structure and
financial management both for maintaining itself and rendering it’s statutory assigned
functions to it’s citizens (Uguru 2011). Local government authorities as a
third tier of government in Nigeria are very important in the execution of both
central and component government policies and programmes. It is the nearest
government that deals with the problems of the masses of the country,
especially the grassroots.
One area which has
remained neglected over time by the local governments in Nigeria is revenue
generation. The usual practice in this country (Nigeria) is that political parties
and individual candidates often make promises to the electorate during
electioneering campaigns without being explicit on how they intend to finance
such programmes. In line with this practice, candidates seeking political
offices often promise vote-catching programmes with scarcely any attention to
the question of funding (Fajobi, 2010). The result is that ordinary citizens
may witness very little government activities and the impact of the government
will be felt in almost all sphere. This may lead to disappointment. It is quite
obvious that very little thought, if any, is given to how funds were to be
generated to implement the various programmes promised to the electorates.
Local governments
across the country are particularly guilty in this respect. Chairmen complain
of their inability to meet their wage bills with the current level of the local
government finances. Chief executive often tries without success to slash the
wages of their workers while others may resort to staff retrenchment in order to
save money to implement programmes.
Fajobi (2010)
argued that the acute dearth of fund currently facing the local government
could be squarely attributed to lack of creativity on the part of the local
government in seeking alternative sources to complement the allocation from the
Federation Account. Most local governments are suffering from hang-over of
overdependence on the centre for assistance, a norm during the military
governance. They are yet to break away from the practice of relying almost entirely
on extension from the Federal Government. The federal government, in turn also
depends entirely on revenue from oil and its apportionment of the lion’s share
of the Federation Account to itself. Local government will continue to be one
of the prime institutional movers of development in Nigeria and their
importance and impact on the daily life of citizens cannot be over-emphasized.
People are intimately affected by the activities of local government on a day
to-day basis and Nigeria, in particular, local governments, have historically
provided services of importance to citizens, literally from cradle to grave.
The standard of living of Nigerians either in rural or urban areas are
inevitably affected by local government activities through the provision or non
provision of basic services such as water supply, roads, health and educational
services etc. Local governments also remain the focal point of promotion of
development and cultural revival through community development projects and
mobilization of human and material resources for developments. It is on the
basis on the foregoing that this study will be focused on the strategies of
increasing and improving revenue generation for development in the Nkanu East
local government area of Enugu state.
1.2
Statement of the Problem
Obviously, the
internally generated revenue in Nigeria Local Government is far below
expectation. It has become imperative to diversify areas of revenue generation
especially with the dwindling federation allocation which has been the major
sources of revenue to the local government. Since inadequate revenue remains
one of the devastating challenges hindering effective local government
administration in the country, it then necessitated the general outcry by the
administrators (chairmen) of local government for a change in Revenue
Allocation Formula or strategies for improving revenue generation in the
development of their respective local government areas.
Again, the problem of
seeing local governments as a mere appendage to the state and federal
government financially has beclouded the patriotic and entrepreneurship psyches
of local government administrators, hence most local government tilted
financially to the federal government for monthly statutory allocation from the
federation account. This problem of economic and financial overdependence of
the local government in Nigeria is devastating, uncalled for and against the
motives for the creation of local government as the third tier. Furthermore,
the inability of the local administrators to use in-sourcing techniques for
funds to finance the council through internally generated revenue is a thorn in
the flesh of meeting up their constitutional responsibilities such as the
provision and maintenance of social services (education and health care)
payment of the worker’s salary and so have given rise to whether to scrap or
restructure local government systems in Nigeria. It is in line with the above
problematic scenario that this research is motivated to carry out an empirical
analysis of the strategies for improving revenue generation for development in Nkanu
East Local Government Area of Enugu State.
1.3 Objectives of the
Study
The
broad objective of this study is to ascertain strategies for improving revenue
generation for development in Nkanu East Local Government Area of Enugu state.
Hence; the following specific objectives will be actualized:
i. To
identify strategies for improving revenue generation for development in Nkanu East L.G.A of Enugu East.
ii. To
ascertain the various challenges surrounding the efficiency of revenue generation
for development in Nkanu East Local Government Area of Enugu state.
iii. To
evaluate the impact of the level of revenue generation on the development of
Nkanu East Local Government Area of Enugu state.
1.4 Research Questions
In
line with the objectives of the study, the following research questions will
pilot the study:
1. What
strategies can be identified for improving revenue generation for development
in Nkanu East L.G.A of Enugu East?
2. What
are the existing challenges surrounding the efficiency of revenue generation
for development in Nkanu East Local Government Area of Enugu state?
3. What
impact does the level of revenue generation in the Local government have on the
development of Nkanu East Local Government Area of Enugu state?
1.5 Significance of the
Study
The
primary importance of this study is that it will empirically identify the
pragmatic strategies for improving revenue generation for development in Nkanu
East L.G.A of Enugu East. This will in essence be of great significance to
local government administrators, students of public administration and other
related departments, other researchers, the state and federal government as
strategy can be replicated.
1.6 Scope of the Study
The
focus of this study is to ascertain strategies for improving revenue generation
for development in Nkanu East Local Government Area of Enugu state.
1.7 Limitations of the
Study
This
research admits its short-comings or limitations. It is a mark of intellectual
honesty to admit that limitations did exist in a research undertaking and to
give an account of the way they have been manifested and taken care of. This
will enable future investigators to have an idea of what militating factors to
look out for and possibly to take care
of them. The basic limitations of the study are: financial inadequacies, time
factor, the uncooperative attitude of some respondents and scanty resource
materials on the subject under investigation.
Finance:
Limitation
of financial resources, coupled with other pressing personal demands militated
against the researcher's efforts to cover a wider geographical area. The
researcher had to spend so much to download materials from the internet. This
was however ameliorated through parental assistance and the adoption of cost
saving techniques during the course of the study.
Time
Factor: Time lag was also a major constraint because the
research was carried out within a given time-frame. This work was carried out
in an environment where the
researcher had to battle with lectures, assignments, class work and sourcing
for materials for the study. However, the researcher made tremendous efforts to
cover adequate issues in order to give value to the findings of the study.
Uncooperative
Attitude of Some Respondents: In the course of
carrying out this study, some respondents were reluctant to accept and fill
their questionnaire. However, the researcher discovered that their main purpose
for being reluctant was because of fear of private information disclosure. The
researcher however convinced them that every information will be treated with
the highest level of privacy.
Scanty
Resources Materials: One of the major hindrances of the study
was scanty materials on the strategies of increasing and improving revenue
generation for development. Very few journals, government and newspapers
publications exist. Hence, the researcher resorted to the available
publications and content analysis in order to beef up the content of the work.
1.8 Operational
Definition of Terms
Local Government: This
is defined as Government at the local level exercised through representative
council established by law to exercise specific powers within defined areas.
Revenue: In
the context of this study, revenue is defined as the fund required by the
government to finance its activities.
Strategy: In
this study, this is defined as a systematic proposed way to achieve a
particular aim or objective.
Development: This
is defined as the multidimensional expansion in the economic, political and
behavioral attitudes of a particular community, state or country.
Internally Generated
Revenue: This refers to the revenue or money collected by the
local government from its internal sources (within the Local Government Area).
The internal sources of revenue comprise many major and miscellaneous items
aggregated to provide the required fund for financing the enormous functions
ascribed to local government as third tier of government.
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