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PROBLEMS AND PROSPECTS OF REVENUE GENERATION IN NIGERIAN LOCAL GOVERNMENT SYSTEM

PROBLEMS AND PROSPECTS OF REVENUE GENERATION IN NIGERIAN LOCAL GOVERNMENT SYSTEM

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PROBLEMS AND PROSPECTS OF REVENUE GENERATION IN NIGERIAN LOCAL GOVERNMENT SYSTEM

Abstract

Local governments in Nigeria confront numerous challenges in producing appropriate funding to carry out their constitutional tasks; such issues constitute a cog in the wheel to the effective operation of local government administration. These issues include dishonesty on the part of officials collecting revenue, such as when officers print receipts.

This incident has affected the activities of Anambra State’s Njikoka Local Government Area. This study investigates the issues and potential for revenue production in Nigeria’s local government system, with a focus on the Njikoka local government area of Anambra state.

The study is a qualitative descriptive analysis, with data gathered through secondary sources. Systems theory provided a theoretical foundation for analysis. The findings show that, despite foreign and internal revenue sources for Njikoka local government, corruption and bad administration,

public cynicism, a lack of qualified revenue collectors, and a lack of financial autonomy all impede tax collection. It also reveals that enlightenment

and motivation of revenue collectors are effective approaches for improving revenue collection prospects in local governments. It thus advises honest and credible leadership as a solution to Njikoka local government’s financial shortages.

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