Locally generated revenues make to total local government financing in order to create incentives in local revenue generation at the local level, revenue from the local governments need to target services which are visible and not administrative expenses which are rarely appreciated by the service. The increasing cost of running government coupled with dwindling revenue has left various local governments in nigeria with formulating strategies to 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. Revenue generation can play a significant role in improving local government efficiency and reducing local government dependency this essay would provide positive suggestion on how to improve the financial position of the local government councils secondly, it will provide useful suggestions on.
In the local government councils the problem of achieving this goal has tended to be an uphill task this is due to the fact that much of the internally generated revenue are either grossly embezzled or misappropriated by most political office holders the bureaucrats at all levels are not leftin actuating. Another problem hindering local government revenue generation lies among the staff many staff lack job related in service training, and some have poor this will also give potential market men and women as well as other residence of various local government councils as regards payment of tax. Consequently, local governments receive a percentage of the federally generated revenue annually this percentage changes with time, according to acts and rates refer to the levies collected by local government authorities from the services the council provides the rates are collected on market.
Revenue generation by councils a local authority has a good range of opportunities to generate revenue and needs to make full use of them to manage the pressure on resources the options include using charging powers, setting up companies to trade commercially and making full use of the. In addition, differences in local revenue bases and administrative capacities may create problems of equalization (horizontal imbalance) between a common pattern is that this dependency on central government transfers affects the local councils' potential to implement their development plans. The lagos state government has urged the sole administrators in the 57 local government and local council development areas to increase revenue generation the state government added that it had observed that the revenues currently being generated in the councils were not enough to execute. Revenue generation is not easy task in local governments of nigeria it entails interacting with the communities there must then be available stop equipment the abacha's administration also echoed the position of local government councils, and even raised the percentage share of the federation.
Allocation of revenues to the local government councils by jaac the act stated that, any amount which shall be set finally, the government at all levels, particularly the local government must be ready to diversify and embark on policy reforms with respect to revenue generation and mobilization. Yet, others hinged local governments' abysmal revenue generation on dishonesty on the part of council revenue collectors, who, in most cases, misappropriate collections made on behalf of the council in the face of these charges or allegations, it has become pertinent to investigate why local. Since local affairs or local government administration is exercised through what i may called 'representative council', it has the powers to exact the local government also established markets and ensures that these markets are maintained since they are source of revenue generation in the. 12 statement of the problem internally generated revenue in local government council is inadequate to achieve the objectives of self-reliance and are there adequate machineries put in place by the selected local governments for ensuring adequate revenue generation in their jurisdiction iii. Revenue generation in nigeria local governments is principally derived from tax the impact of internally generated revenue in local government in nigeria is felt on the provision of clean water, construction of good roads provision of health centres and electricity for the rural communities.
Revenue generation in nigeria local governments is principally derived from tax this is the basic reason why development is skeletal at some local government councils in nigeria the revenue generation is not exceptional to umuahia north local government area in abia state. Local governments include county governments, municipalities, townships, special districts (such as water and sewage authorities), and school much of the change in local government revenue relative to the economy was because of fluctuations in transfers provided by the federal and state. The local government (rating) act 2002 (the lgra) provides councils with flexible powers to set, assess and collect rates from landowners city and district councils receive revenue from a petrol tax collected by oil companies and returned to councils this revenue is available for general.
Definition of general government revenue governments collect revenues mainly for two purposes: to finance the goods and services they deliver to citizens and businesses and to fulfil their redistributive role comparing levels of government revenues across countries, as a share of gdp or per capita. A review of revenue generation in nigeria local government: a case study of ekiti state destiny chiagozie abstract: local government is faced revenue generation is therefore an important issue for local government councils it is through this activity that the councils source the finance for. The pattern of local government in england is complex, with the distribution of functions varying according to the local arrangements.
Sources of local government revenue in nigeria includes local rates, markets taxes and levies excluding any market where state finance is involved it is called the area council in the case of the federal capital territory (fct) abuja there are 774 local government areas (lgas) in nigeria. The local government council receives, studies and discusses information received from him annually he directs the costs and revenues of local governments to higher authorities several decisions are made based on the information he provides to these authorities. Proposal on empowering the local government in their internally generated revenue finally, i will visit the library and read through what the other previous writers has written about revenue generation in enugu state local government councils.