Analysis of options for Maximizing Local Government internally generated Revenue in Nigeria
Subtitle: Traditional Sources of Revenue to Local Governments in Nigeria
Publisher: International Journal of Learning & Development
Published: September 05, 2012
Format: Local Government internally generated Revenue in Nigeria
Number of pages: 11
ISBN-13: 2164-4063
Description: This study examined the various options for maximizing internal revenue generation in the Nigerian local governments.
Table of contents: title: Abstract; title: This study examined the various options for maximizing internal revenue generation in the Nigerian local governments. It took critical and hard look on the various sources of internal revenue in the local governments, problems of exploiting the various sources for revenue generation, and the reason why most of the sources remain untapped or under-tapped by the local government in Nigeria. The study suggested feasible and pragmatic ways to maximize internal revenue generation in the local governments. It observed that prior to 1976 Local Government Reform; most local governments were able to maximize their internal revenue generation and discharged their primary responsibilities with little or no financial assistance from the higher tier governments. However, with the introduction of statutory allocations to the local governments following the 1976 Reform, most of the local governments abandoned the hitherto viable internal revenue sources in preference to the revenue from statutory allocation. This unwholesome attitude of most local governments, among others, was identified as the bane of internal revenue generation at this level of government. The paper concludes, by stating that unless the local governments look inwards to maximize their internal revenue sources it cannot be financially self-reliant. The implication of this is that it cannot enjoy reasonable degree of autonomy as a third tier of government if it continues to be heavily dependent on the financial assistance from both the federal and the state governments, to be able to function effectively. The reason is because as the saying goes, “he who pays the piper dictates the tune.”; title: International Journal of Learning & Development; title: ISSN 2164-4063; title: 2012, Vol. 2, No. 5; title: 95 www.macrothink.org/ijld; title: Keywords: Local Government, Revenue, Reforms, and Administration Introduction The 1976 Local Government Reforms in Nigeria has since remained the greatest in the development of local government administration in the country. The aims and objectives of the Reform were meant to make the local government in Nigeria a real third tier or level of governmental administration after the Federal and State Governments. The main thrust of the reform was to enable the local government extend social services and the development of rural infrastructure to the grassroots. It was in recognition of these objectives that the Fourth Schedule of 1979 Constitution of the Federal Republic of Nigeria, outlined in detail, the development functions of local governments in Nigeria. In addition to the participation by the local governments with state government in drawing up the economic development policies and programs of the state, local governments should also provide, maintain and control social services at the local government level. Local governments also have responsibility for primary education, agriculture and natural resources, primary health services, construction and maintenance of rural roads and rural market. Also, the Committee on the Review of Local Government Administration in Nigeria, 1984 (otherwise referred to as the Dasuki Committee) recommended the following basic/detailed functions which should be carried out through strict compliance with the budgetary guidelines to be set annually by the Local Government Council in their Approved Annual Estimates:; title: a) Basic environmental sanitation and other aspects of preventive health;; title: b) Provision of maternity centers, dispensaries, leprosy clinics and health centre;; title: c) Construction and maintenance of roads, drains, excluding Federal and State roads;; title: d) Local inland waterways not designated for international waterways;; title: e) Provision of rural water supply and extension of urban supply;; title: f) Community Development;; title: g) Agriculture and Veterinary Extension Services;; title: h) Construction, maintenance and equipment of primary schools;; title: i) Town and country planning;; title: j) Markets, motor parks, parks and gardens;; title: k) Maintenance of law and order; and; title: l) Afforestation.; title: In order to be able to carry out these functions at the grassroots, the Federal Military Government extended in 1976, a grant of N100 million to the then 301 Local Government Areas in the country and also proceeded, in 1977, to appoint the Aboyade Technical Committee on Revenue Allocation to determine a revenue formula that would entrench into the 1979 Constitution of the Federal Republic of Nigeria. Even though the recommendations of this committee were not included in the 1979 Constitution, the Revenue Act of 1981, in accordance with Section 149 of the 1979 Constitution, made local governments in Nigeria, for the first time, to be recognized and included among the three tiers of government that would benefit from the statutory allocation of the Federation Account; and the following formula was adopted for the local governments:; title:  10 percent share of the Federation Account;