The primary objective of this study is to ascertain the strategies of increasing and improving revenue generation for development in the Nkanu East local government area of Enugu state. The theories upon which the study is anchored are the Structural Functionalism Theory, the Efficiency Theory and the Functional Theory. The population of this study comprised of the staff of Nkanu East local government, which is a total of one hundred and nine (109) persons. A sample size of eighty six (86) was drawn using the Taro-Yamane (1967) statistical formula. Data for the study was collected using self-administered questionnaires. The method of data analysis utilized in the study was the frequency tables and percentages. Findings from the analysis revealed that the strategies adopted in generating revenue in Nkanu East are not sufficient; the primary challenges facing the efficiency of revenue generation for development in Nkanu East Local Government Area of Enugu state include corrupt practices among revenue collectors, and lack of education and enlightenment by the local government to the citizens on the need for them to pay their annual rates and fees to the local government; and the level of revenue generation has made no significant impact on the development of Nkanu East Local Government Area of Enugu state. It is therefore the recommendations of this study that modern strategies should be adopted to enhance the internal revenue generation in the local government; that adequate measures should be adopted to curb the tide of financial corruption among revenue collectors in the local government; and, that the revenue generated should be made to impact positively on the development stride of the local government area, among others.




Title page                                                                                                    i

Approval page                                                                                           ii

Certification page                                                                                       iii

Dedication                                                                                                  iv

Acknowledgements                                                                                     v

Table of contents                                                                                        vi

List of tables                                                                                               vii

Abstract                                                                                                      viii


1.1 Background of the study                                                                      1

1.2 Statement of the problem                                                                     4

1.3 Objectives of the study                                                                                   5

1.4 Research questions                                                                                         6

1.5 Significance of the study                                                                       6

1.6 Scope of the study                                                                               7

1.7 Limitations of the study                                                                       7

1.8 Operational Definition of Terms                                                                    8


2.1 Introduction                                                                                          10

2.2 Conceptual Framework                                                                        10

2.2.1 The Concept         of Local Government                                                     10

2.2.2 The Concept of Rural Development                                                  12

2.2.3 The concept of Revenue                                                                    13

2.2.4 Strategies of Revenue Generation                                                     14

2.3   Empirical Literature                                                                                   15

2.4.0 Theoretical Framework                                                                        25

2.4.1 Structural Functionalism Theory                                                       26

2.4.2 The Efficiency Theory                                                                       27

2.4.3 The Functional Theory                                                                     27


3.0 Introduction                                                                                          29

3.1 Research design                                                                                    29

3.2 Sources of Data                                                                                    29

3.2.1 Primary Source of Data                                                                     29

3.2.2 Secondary Source of Data                                                                           30

3.3 Area of the Study                                                                                         30

3.4 Population of the Study                                                                       30

3.5 Sample Size Determination                                                                            32

3.6 Sampling Technique                                                                             32

3.7 Method of Data Collection                                                                             33

3.8 Instrumentation                                                                                            33

3.9 Validity of the Research Instrument                                                     33

3.10 Reliability of the Instrument                                                                 34

3.11 Method of Data Analysis                                                                   34


4.1 Data Presentation                                                                                 35

4.2 Data Analysis                                                                                                35

4.3 Discussion of Findings                                                                              36


5.1 Summary of findings                                                                                      50
5.2 Conclusion                                                                                           51

5.3 Recommendations                                                                                51

Bibliography                                                                                                 53

Appendix                                                                                                   57

Questionnaire                                                                                             58




1.1 Background of the Study

Local government is recognized by the 1999 constitution of the Federal Republic of Nigeria as the third tier of government within the tripartite federal structure of governance in Nigeria, with the state and federal government as the super ordinate government. The government in Nigeria which exists at tripartite arrangement (federal, state and local government) plays complimentary roles to each other to meet the needs of the people which include infrastructural facilities (Okpata 2004).

Furthermore, local government is seen as a public sector organization, the third tier government with assigned functions and responsibilities, administrative structure and financial management both for maintaining itself and rendering it’s statutory assigned functions to it’s citizens (Uguru 2011). Local government authorities as a third tier of government in Nigeria are very important in the execution of both central and component government policies and programmes. It is the nearest government that deals with the problems of the masses of the country, especially the grassroots.

One area which has remained neglected over time by the local governments in Nigeria is revenue generation. The usual practice in this country (Nigeria) is that political parties and individual candidates often make promises to the electorate during electioneering campaigns without being explicit on how they intend to finance such programmes.

In line with this practice, candidates seeking political offices often promise vote-catching programmes with scarcely any attention to the question of funding (Fajobi, 2010). The result is that ordinary citizens may witness very little government activities and the impact of the government will be felt in almost all sphere. This may lead to disappointment. It is quite obvious that very little thought, if any, is given to how funds were to be generated to implement the various programmes promised to the electorates.

Local governments across the country are particularly guilty in this respect. Chairmen complain of their inability to meet their wage bills with the current level of the local government finances. Chief executive often tries without success to slash the wages of their workers while others may resort to staff retrenchment in order to save money to implement programmes.




2.1 Introduction

This section of the research is focused on reviewing existing literature connected to the topic under study. This section is divided into conceptual framework, theoretical framework, empirical literature and gap in literature.

2.2 Conceptual Framework

2.2.1 The Concept of Local Government

This refers to the revenue or money collected by the local government from its internal sources (within the Local Government Area). The internal sources of revenue comprise many major and miscellaneous items aggregated to provide the required fund for financing the enormous functions ascribed to local government as third tier of government.

The term local government has been defined variously by different scholars. In the view of a scholar like Wraith, local government refers to locally elected councils whose main purpose is to provide or administer services with as great degree of independence as modern circumstance allow (Wraith, 2004). For Golding, local government is the management of their own affairs by the people of their locality (Golding, 2009).

Some other scholars have attempted to expand on and perhaps give greater expression to the definitions given above. For Sorka, local government connotes the decentralization or dispersion of authoritative decision making where by the authority to make decision is displaced downwards from remote points near the top administration or outward from geographical locations, thus bringing authority closer to the people affected by it (Sorka, 2008).

In the same vein, Oyediran sees local government as the diffusion of political process on area basis, i.e. local self administration and inclusion of noble ideals of impartiality, protection of minority rights and integrity, all of which are considered essential to the evolution of a liberal democratic society (Oyediran, 2009).


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