ABSTRACT
The research project is on the problem of revenue generation strategy in Enugu State local government system. The main source of local government fund is the 20 percent statutory allocation from the consolidated revenue fund. This fund is not enough for the local government to discharge its responsibilities to their people. It therefore, become necessary for the local government to look for other means of generating fund internally to supplement the 20 percent federal allocation to them. They still do not meet up with their social, economic and political responsibilities to their area of governance for instance, salaries and wage are not paid to workers regularly. This results in workers not being able to pay house rents, school fees for their children and PHCN bills. Again, the roads in the local government are not maintained, there are pot holes everywhere, causing untold hardship to the motorists, unnecessary traffic hold up and as a result the workers report late to work. This study therefore, seeks to investigate into the factor problems that limit revenue generation strategy in Enugu State local government system. To achieve this, data for the research were collected mainly through the primary source of questionnaire, which were structured closed-ended questions specifically designed in line with the research question. The questionnaire was distributed to 85 workers of the accounts, and its treasury and personnel departments of the local government. Face to face interview with some staff from selected department in the local government and also the research personal observation were used to supplement the questionnaire. The simple random sampling method was used to collect the data. Data collected were analyzed using percentage analysis and several finding were made. These includes: That there was lack of effective planning and control of government financial resources. That there is lack of investment foresight, mismanagement, and employment of inexperienced personnel. In view of these findings, the researcher made some recommendations, which if fully implemented will reduce eliminate these limiting factors and encourage good increasing and progressive revenue earning in the local government. These recommendations include: Mounting enlightenment campaign to educate the citizens on their right and duties. A percentage of the amount realized should be reinvested in a capital project. The federal government should also increase the statutory allocation to local government.
LIST OF TABLES
Table 1: What is the percentage distribution of the
respondent department? 69
Table 2: What are the main source of revenue to the local
government ? 71
Table 3: What categories of workers go for revenue
collection in your local government area? 72
Table 4: What are the academic qualification of these staff
or workers? 73
Table 5: What are the problems encountered by the revenue
collectors in a your local government? 74
Table 6: Have your local government ever had any to cash
of misappropriation of fund before? 75
Table 7: What is the nature of the misappropriation? 76
Table 8: Do your local government have any commercial
undertakings? 77
Table 9: What are the problems encountered in the
management of the business undertaking? 78
Table 10: Do your local government invest in securities, like
treasury bills, shorter fixed deposit and
company securities? 79
Table 11: Why do they not invest in securities? 80
Table 12: Do you think that savings by direct labour cost
and better purchase arrangements? 81
Table 13: Do you think that your local government taps
those source to the fullest? 82
Table 14: Do you think that your local government treasury
is efficient in the management of local government funds? 83
Table 15: Is your local government efficient in revenue
generation? 84
Table 16: What is your recommendation for improvement of
revenue generation strategy in your local government council? 85
TABLE OF CONTENTS
Cover Page i
Title page ii
Approval page iii
Dedication iv
Acknowledgement v
Abstract vi
List of Table vii
Table of Contents viii
CHAPTER ONE
INTRODUCTION
1.1 Background of the study 1
1.2 Statement of the Problem 6
1.3 Objective of the study 8
1.4 Significance of the study 10
1.5 Research Questions 11
1.6 Statement of Hypotheses 12
1.7 Scope and Limitation of the Study 14
1.8 Definition of Terms 15
References
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.0 Review of Related Literature 18
2.1 Historical Background of Enugu 18
2.2 Source of Local Government Revenue 21
2.2.1 Capitation Rate 22
2.2.2 Property Rate 23
2.2.3 Licenses, Fees and Fines 24
2.2.4 Commercial Undertaking 25
2.2.5 Other Source of Revenue 26
2.2.6 External Sources 27
2.2.7 Statutory Allocation 27
2.3.0 Problems of Revenue Generation 32
2.3.1 Tax Evasion and Avoidance 32
2.3.2 Lack of Qualified Manpower 34
2.3.3 Motivation and Corruption 36
2.3.4 Mismanagement and Incompetent 38
2.3.5 Lack of Management Audit 42
2.3.6 Lack of accumulated capital for Investment 44
2.3.7 Lack of accumulated recurrent fund 45
2.3.8 Lack of Local Government /Public Loan 47
2.3.9 Financing Officers 49
2.3.10 Poor Banking Facility 53
2.3.11 Lack of Adequate Data for Census 54
2.3.12 Tax Payers Ignorance, Illiteracy and Poverty 54
References
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Method and Sources of Data 58
3.2 Research Population 59
3.3 Sampling Method 59
3.4 Description of the Research Instrument 60
3.5 Determination of Sample size 60
3.6 Method of Data Analysis 62
References
CHAPTER FOUR
PRESENTATION, ANALYSIS, AND INTERPRETATION
4.0 Presentation, Analysis, and Interpretation 65
4.1 Data Presentation 65
4.2 Percentage Analysis 68
4.3 Test of Hypotheses 86
CHAPTER FIVE
5.1 Summary of Findings 94
5.2 Conclusion 97
5.3 Recommendations 98
Bibliography
Appendix
