The Impact of Poor Revenue Generation on the Development of Local Government Areas
PURPOSE/OBJECTIVE OF THE STUDY
The broad objective of the research is to evaluate the impact created by poor revenue generation on the development of Umuahia North in Abia State.
The other objective of this study includes:
- To determine the level of modern social amenities available in Umuahia North.
- To find out the level of poverty associated with the rural people as a result of poor development
- To find out the degree of rural-urban migration.
- To make useful suggestions to solve the problem of poor revenue generation as development depends on revenue generated.
DEVELOPMENT OF LOCAL GOVERNMENT IN NIGERIA
The evolution of local government in Nigeria has under gone alots of changes. These are all geared towards making the local government a system that could serve the purposes for which they are created, before the emergence of the British Colonial/ Administration; various communities in Nigeria were governed through the instrumentality of their traditional political Institutions. These institutions were anchored on the people’s habits of thought, prestige and custom which are adapted to meet the new conditions for general development of their areas.
Local authorities were empowered to charge and collect developmental rates based on a certain percentage of the income of the rate payers. The council enjoyed the social autonomy of providing certain social services to the community, for instance the local government was vested with the responsibility of healthcare services delivery with the transfer of primary healthcare delivery system.
In the 1950s, election was introduced according to the British model in the western and eastern parts of the country with some measure of autonomy in financial, general administration and in personnel which gave rise to tide of progress, growth and development experienced in the local government.
Prior to this period, the British introduced native courts chaired by Chiefs, native treasuries where taxes collected from people were paid in for use by the local government. Native authorities were created with traditional rulers at the head of each authority. The traditional rulers continued to dominate local government’s administration until the military took over power. In 1966, from then the powers of the traditional rulers, especially in the northern region, reduced gradually. The newly created states in the Northern region increased popular participation in local government administration. Larger local authorities were broken to smaller ones and native authorities were changed to local governments.
The local government reform of 1976 provided the guidelines for local governments in Nigeria. The reform created large-sized local government areas throughout the federation based on a certain minimum population requirements, these results in uniform local government areas. The federal government for the first time was involved in the funding of local governments. The local government gets statutory percentages share of Federation accounts and state revenue. The local government was made a third tier of government, which means the local government has its own powers. There were about 301 local government councils as at 1976.
In 1986, the Babangida Administration made local government an effective third tier of federal system, introduced reforms aimed at enhancing their autonomy and strengthening their administrative framework. All elected councilors now constitute legislative arm of the local government which the executive arm consists of the chairman and vice-chairman and supervisory councils.
The local government witnessed several reforms between 1991 to 1992. the reforms snows a fundamental implications for local government administration, especially in regard to the reforms to the local government service. 589 local government areas were in existence as of 1991 local government reforms and there was establishment of the executive chairmanship of local government with functions firmly entrenched in schedule four of the constitution.
The federal government established the local government service commission aimed at preserving the independence of the local government staff. The federal government increased the local government share of the federation accounts to twenty percent. This increase in revenue base gave local governments high degree of confidence and power to equip them for the challenging role, facing them.
The methodology adopted for conducting this research is aimed at finding out the impact of poor revenue generation on the development of local government areas with references to Umuahia North in Abia State.
Research design aimed at showing the various methods and procedures of the research work. The methodology adopted for this work reflects the researchers sense of originality and power of mental enquiring. The method of enquiring data collection, questionnaire design and data analysis technique will substantiate this fact.
Research design according to Osuala E.C. (2001) is the blue print or plan which determine the nature and scope of study carried out or proposed.
The research design used in this project is descriptive design which seek to describe the existing status of what is being investigated and it will also help the researcher to know where the variable are gotten and how the objectives could be achieved.
This descriptive approach involves the normal gathering analysis and interpretations or a set of data so as to explain the underling factors that surround the problems that triggered of the research.
AREA OF STUDY
This study centres on the impact of poor revenue generation on the development of local government areas. It covers only Umuahia North Local Government in Abia State.
Population is the number of respondents, the researcher is investigating. This also known as the universe. The population under study consists of 200 staffs of Umuahia North Local Government.
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter deals with the presentation of data collected in the course of the study. In analyzing the data collected, tables were used in the presentation of data. The simple statistical method of frequencies and percentage were applied. The research questions were also analyzed.
SUMMARY OF FINDING, RECOMMENDATION AND CONCLUSION
In this chapter, the research presents the summary findings based on the analysis of the data collected, base on the result of findings, recommendations are made which leads to conclusion.
SUMMARY OF FINDINGS
The researcher discovered that the impact of revenue generation on the development of the local government areas could be rated below average which has resulted to poor development of the rural areas.
The researcher also found out that the revenue generation within Umuahia North local government area was grossly inadequate for the provision of modern social amenities.
Due to poor revenue generated to provide basic social amenities, such as accessible road, schools, portable pipe-bore water, electricity among others it was impossible for rural people to sell the agricultural crops, drink portable water, pay school fees. Thus the poverty is very high.
The researcher also discovered that due to poor revenue generation to provide basic social amenities especially in the rural areas. There was exodus of rural dewellers to the urban centres.
Included in the researchers findings was that the major method to be adopted by the local government in order to improve revenue generation base should be the enlightenment of the citizens on the need and important of regular payment of taxes.
Based on the findings, the following recommendations have been made.
The efforts of local government should not only be directed toward the revenue yielding alone but also to the provision of social amenities such as basic health facilities, accessible roads, town halls, electricity and water supply which will help to improve the socio-economic of life of the rural people.
These facilities provided by Umuahia North Local government should be of high quality by doing this; the people’s interest will be geared towards giving their maximum support to the government which will lead to the development of the area.
There should be constant campaign and awareness programme within Umuahia North local Government to enlighten the rural peoples on the benefits of prompt payment of taxes to the government as when due, it will go a long way in improving the revenue generation.
The local government should embark on the establishment of small scale industries which will provide employment opportunities for the youths in the rural area to tackle the problem of rural-urban migration.
There should be improvement and development with agricultural sector, such improvement will encourage participation of the rural people within Umuahia north local government which will improve their standard of living of the people.
In the research, it is clear that poor revenue generation by local government in Nigeria have affected the spread of development to all the nooks and crannies of the country. Thus local government councils and their management should strategically plan on proper measures to generate revenue as to meet with their functions as provided by the constitution of the country.
This will enhance their financial ability to implement their constitutional functions or responsibilities to the rural peoples.
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