Problem and prospects of internally generated revenue of local government administration in Nigeria

Description

Problem and prospects of internally generated revenue of local government administration in Nigeria.

Abstract

This research project attempt to examine the problem and prospect of internally generated revenue of local government administration in Nigeria. Local government administration in Nigeria is facing financial problems due to inadequate internal revenue. Such problems make the local governments depend heavily on the external source of revenue especially statutory allocation from the Federal Government. Therefore as a result of this, many local governments cannot be able to perform their functions without the intervention of an external source of revenue. Some factors are responsible for problems being experienced by the local government such as lack of adequate internal revenue sources especially rural based local governments such as local government, the inability to identify some other source of revenue apart from the already existing one, neglecting so many revenue sources which is the exclusive preserve of the local government as outlined in the 1999 constitution of the Federal Republic Of Nigeria. All these development tend to hinder the effective and efficient performance of the local government especially service delivery to the grassroots.  local government as one of the local governments in one Nigeria has been experiencing similar problems of internal revenue to some other local governments, especially in Katsina state. This study formulated two hypotheses: lack of adequate internal revenue sources led the local government to experience internal revenue problems, the second hypothesis is, that if the local government can be able to harness all the abandoned sources of revenue, its revenue will be improved.