REVENUE GENERATION IN LOCAL GOVERNMENT AREAS
1.0 INTRODUCTION:
BACKGROUND OF THE STUDY:
Nigeria has three- tiers of government systems,
These are; (i) The federal government
(ii) The state government and
(iii) The local government.
The essence of this division of government into federal, state and local levels is to enable the government exercise her administration easily and effectively. However the 1979 constitution spells out the functions of each level of government. Generally it can be said that the governments are responsible for the provision of the collective (social) goods and services on a non- commercial basis as well as the provision of other social and economic services. In order to meet up with the foretasted goals and services, the government needs to collect revenues.
Local government, which this work emphasizes on, can be described as the government at the local level, exercised through representative council, established by law to exercise specific power within definite areas. The government of such body is selected or otherwise locally selected.
The administering of government at local level in Nigeria traced as far back as colonial period, when native authorities were established in their rudimentary forms, that is in their own ideas. They represented a system of indirect rule, which sought to establish a form administration through traditional authorities
Between 1950 and 1955, the first elected local government council based on the model was shadbushes in logos and in the former Eastern and western Region. Though, the traditional members constituted a maximum of 25 percent in most of the councils, the emergence of members elected on a political basis instigated the traditional rulers to gradually withdrawn from active participation in local administration in Nigeria.
Presently, local government administration is still in existence assigned with numerous. Responsibilities like, bawling of market square, provision of pipe-born water, motor parks, rehabilitation of local and rural roads, sanitary and health inspection, maternity home and dispensaries e t c.
Finally, local governments have two (2) main sources of revenue or fund. They are
(i) External sources of fund.
(ii) Internal sources of fund.
The External sources of fund include;
(a) Statutory allocations from the federal and state government (i.e., 20% considered federal revenue and 10% of internally generated state revenue).
Special grants which aim at assisting local government finance their aforementioned projects. In addition, local government source fund internally through receipts on rent and rates on their
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