Impact of revenue generation and local government administration towards economic development


The Impact of revenue generation and local government administration towards economic development in Nigeria


Today’s Local Government Administration in Nigeria is faced with varieties of problems. There are the problems of sourcing for adequate revenue from the federal andstate governments. And there are also the problems associated with sourcing for funds via internally generated revenue. These mired problems are cogwheels to smooth running of local government administration in Nigeria. There are the problems of dishonesty on the part of revenue officers who often times, divert council’s money for personal use; there is also the encroachment of other levels of government by diverting local government funds. There is therefore, an urgent need to review local government revenue generation to meet its need toward the development of the rural areas. The objectives of the present study is to critically examine the impact of internally generated revenue on local government administration in acheiving economic developemt, and to establish a nexus between internally generated revenue, and level of development. To analyze the machinery internally generated revenue, as well as to review the various sources of internally generated revenue. Data were collected from selected Local Government council of River State for this study. The analysis is through descriptive and inferential statistical tools. The descriptive analysis involved the use of simple percentages, tabulation and counts, while inferential statistical method employed, chi-square analytical instrument. It is concluded and recommended that keeping of appropriate accounting records and books, supply of social and economic service, establishment of people oriented projects, staff motivation; training and retraining of revenue officers can set the local government system in the right direction to improving internally generated revenue