Problems of Revenue Generation in Local Government Administration in Nigeria

Abstract

Every local jurisdiction has its unique economic, social and physical  characteristics and its historical tradition which are better understood by its  people. Thus, the Local Government Areas are created to provide the  services which the Federal and State Governments cannot easily undertake due to their remoteness from the local communities. Therefore, the  concept of local government is to bring governance closer to the people at the grassroots, with the aim of caring for the socio-economic and  development needs of local populace. Over the years, it has been observed that massive rural-urban migration and over congestion are heating up lives in the cities. Others have contended that Local  Governments are docile in terms of aggressive revenue collection to  augment allocations from the federation account which they get on monthly basis. 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 Governments in the country have poor revenue generation efforts.  The thrust of this paper therefore is to find lasting solutions to the financial problems hindering local governments in Nigeria, most especially strategies to ameliorate the over-dependence on Federal Government allocation for the up-keep of the Local Government. The paper also recommends  amongst others, that any official who divert local government funds to their personal purse should be punished in accordance with the law of the land, use of council staff for revenue collections should be encouraged and stop using agents who are not council staff. The paper concludes that  undoubtedly, for Local Governments to be able to perform these functions creditably, they need sufficient funds.

Key words: Local, Relevant, Mobilize, Revenue, Autonomy, Allocation.