THE IMPACT OF REVENUE GENERATION ON LOCAL GOVERNMENT ADMINISTRATION IN NIGERIA                                                         

CHAPTER ONE

INTRODUCTION

 1.1       BACKGROUND OF THE STUDY

The local government in the country with particular reference to Enugu North Local Government Area has been performing below the expectations of the people it is meant to serve.

Local government is the third tier of government and is defined according to local government reform guideline of the Federal Republic of Nigeria, 1976 as “A set of Local Government with their own identify, powers and sources of revenue established under state legislation and with functions for which they are responsible to the state”. 

The aim of creating local government as the third tier of government is to enable government to get closest to the people at the grass-root there by ensuing that its productivity to the people can sensitize and satisfy the people’s needs in terms of development and provision of services through the involvement of members of the public in the development of their area.  It was in pursuance of this aim that both the various state and local government edicts and the for the schedule of the 1979 constitution of Nigeria assigned functions to local governments.  These functions were divided into provisions of social services and economic development of the local government area.

However, it is glaring that there were criticism on the mocks – operandi of the staff employed to run its affairs.  The criticism ranged from discontinuity, improper policy implementation, misplaced priority, reluctant to changes in its environment, bribery corruption, red tapism and inefficiency.

These malfunction and indeed the merit impediment to the smooth running of our local management services include the issues of misappropriation of funds generated which in effect, militate against the full discharging of the responsibilities of Enugu North local government area in particular and other local government in general.

Based on the above problem, the Enugu North local government area which was created for effective and qualitative rural transformation has not faired efficiently in the accomplishment of these objectives, which includes provision of basic need and infrastructural changes.

The autonomy granted to the local government has retarded the efforts of the local government service commission in bringing uniformity in the employment procedures in the local governments.  The issue of mint was not therefore given a favourable consideration as it ought to be.  It was based on political compensation, fancily ties, god-fatherism and local patrotism.  One therefore wonders how a square peg could be put in a round hole.

In consideration of all these problems planning the Enugu North local government and all the other local government in the country, the need for this study should not be over emphasized.

1.2       STATEMENT OF THE PROBLEM:

The local governments have not faired in its aspect of revenue generation, which is one of the essential instrument in the achievement of their stated objectives.

As a matter of fact, inadequate and under-utilization of resources as well as lack of proper planning in the exploitation of the local government financial resources has been the major hindrance militating against the fully discharging of the responsibilities of Enugu North Local Government.

In the same vein, lack of management resourcefulness and administrative competence has been hampering the development of the local government.

Some staff of the local government who are employed to generate revenue are not properly trained.

“Most staff of local governments in Nigeria do not know the objectives or the impact, revenue generation has in government establishment, as a result of this, many to officials defraud such local governments through unexecuted, incomplete and inflated constracts” (Onoja, 1986:3) the further noted that the system of employment is localized and most suitable qualified applicants are sacrificed for unqualified ones.

The problem facing the Enugu North Local Government is diverse are varied.  But, the crucial one is improper accountability of the revenue generated.  Most of the revenue collectors do not make daily remittance to the financial and supply department.  This is because no daily banking instructions have been passed by the authority.  This, therefore, signify weakness in the internal control system of the local government.

1.3              PURPOSE OF THE STUDY

The purpose of this study is to research into the impact of revenue generation in local government administration in Nigeria, using Enugu North Local Government as my case study, with a view to suggesting better means to a viable revenue generation in the local government.

1.4              SCOPE OF THE STUDY

The study or research based its theoretical foundation on financial management theory approach by R. Vanse and human relations theory approach of Elton Mayo e tal.

The Vause financial management theory was to the view that every person responsible for finance, whether to is the finance of an organization or the house- keeping money, is confronted with the prospect, during the coming days, months or years, of an inflow of payments on the other, and it is his or her responsibility to try to make sure that inflows and outflows are so arranged that money is always available to make necessary payments as they arise.  The theory views money to be considered in any organization after human beings.

The Elton Mayo et al human relation theory states that the individual (workers) should actualize his interest within the organization.  Where as the organization will achieve its core objectives through human energy and resources realized by the revenue generators who as a result of job social environment find himself or herself in a work environment where co-operation, creativity and thus productivity are facilitated.

The principle of the theory states that the management should try to satisfy the ego needs of the employees, not only the primary needs of survival.

This theory is based on management efficiency goals as it was focused on the workers in their group.  (Mockle,1970).  This principle should service as a guide to those that are piloting the affairs of Enugu North Local Government in various approaches to the utilization of human and material resources.  Human relation theory is concerned with creating an internal environment in which people of different needs and aspirations are bought together into the organization with its stated and over all objectives.  The organization must create a conducive atmosphere where by the worker (individual) and the organization (employees) relates to each other in a harmonious manner.

So the workers and the executive of Enugu North Local Government should strike at a balance so that the best is made out of the finance unit workers through better financial resources management which will in turn enable the executive achieve the overall objectives of the local government service there by winning the administration and aspiration of the masses.

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