1.0 Introduction
1.1 Background of the Study
Organizations are set up to achieve some clearly defined goals. The goals which tend to vary may be social, economic, political or varied combinations of these. Revenue has been considered as a significant issue in the economic development of any nation. Its importance cannot be over emphasized, be it the federal, state or local government. It serves as a life wire of every business which helps the organization to attain its goals, revenue. It is of great importance to national development.
The origin of revenue generation and utilization in the local government started with local government reform of 1976, where local government of revenue for the development of people in the local government area.
This gave the rural people a sense of belonging in the allocation of national cake since Nigeria constitution provides local government authorities with unique opportunities and challenges to achieve self generation of income for economic growth and development.
1.2 Statement of the Problem
This can be observed that revenue generation is an activity that needs skilled and experienced head in the sense that deals with several dependence and independence variables such as energy, time and labour.
Again, due to the problem of the limited resources of the people to satisfy their living very well revenue generation becomes very difficult.
These problems includes: poor constructed road for revenue collection, inadequate supply of social amenities, insufficient industrial unit etc.
This research work is designed to investigate the various problems associated with revenue in the local government of Mbaitoli in Imo state and proffer possible solution for efficient generation of revenue in the above mentioned local government.
1.3 Objectives of the Study
Based on the above, the study is designed to outline the following.
- To find out if any adequately generated revenue will promote economic growth and development of the area.
- To see if increased revenue generation will aid quality income distribution in Mbaitoli local government council.
- To x-ray some of the problems militating against revenue generation in Mbaitoli locality.
1.4 Research Questions
This research on revenue generation and utilization in local government, problems and prospects with particular reference to Mbaitoli local government Imo state has raised some questions among experts and professional, which this study has attempted to address. The research questions then are the following.
- Does Mbaitoli local government have the aim of revenue generation?
- Does inadequate logistics create problems for revenue generation in Mbaitoli local government?
- Is effective planning and budgeting necessary to improve revenue generation in Mbaitoli local government?
- Is there stability or instability in revenue generation in Mbaitoli local government?
- Is it necessary to audit the revenue generated in Mbaitoli local government?
These research questions forms the basis of investigation, which the study is designed to accomplish.
1.5 Significance of the Study
The research work is a paramount importance to Mbaitoli local government authority and other local government areas because of the role of finance to the organization and institutions.
The work is also helping to advice the researcher(s) and enable him contribute in finding solution to the problem for which the research is based.
The work will also enable the researcher to determine the possible course of failure in revenue generation, which will aid her in advising the government on the steps to take in solving them. It will be of immense benefits to the local government if it takes the findings and recommendations of this research into consideration when making policies and decision concerning revenue generation.
It will be a great importance to the board on internal revenue, ministry of finance etc. it can serve as a reference document for further research.
Finally, the work will contribute to the stack of knowledge and stimulate further research into the subject matter by students and lecturers in the faculty of social and management sciences.
1.6 Scope of the Study
The scope and range of the study would have been wide enough to encompass grossly all the commercial local government in Imo state and beyond.
But the study will be focusing on revenue generation and utilization in local government. Problems and prospects with particular emphasis on Mbaitoli local government, also comparison may be made with other local government areas and when necessary.
1.7 Limitation of the Study
The researcher during the course of the work encountered some problems. The problem of time stood in the way of the researcher because time for the work was very short to have thorough study or research.
Financial predicament was another imitating factor the researcher faced within the course of this study. As a result of this, it became difficult for regular visit to Mbaitoli local government at least to afford her the opportunity of observing from time to time techniques of revenue generation and utilization as regards to its problem and prospects.
Unnecessary bureaucratic processes within the local government posed a great deal of problem such as writer was not able to get at some of the staff of the council. Based on these limitations, the study became restricted to revenue generation, its problems and prospects in Mbaitoli local government areas.
1.8 Definition of Terms
There are terms which their explanation according to the context of their usage in the study will help enhance the understanding of this research. They are as follows:
Revenue:
This can be defined as an income the local government derived from taxes and other sources.
Taxation:
This is defined as a compulsory payment made by individuals, corporate bodies or institutions to government at intervals its sustenance.
Internal Revenue:
These are those revenue generated in a given period.
External Revenue:
These are those revenue generated outside the local government in a given period.
Personal Income:
This can be defined as the sum of total compulsory payment to government by citizen of certain percentages of the total income during a period of time, usually a year.
Statutory Allocation:
This is the mechanism for sharing the country's financial resources among the different tiers of government in the generation, with the overall objectives of enhancing economic growth and development minimizing inter government tension and promoting national unity. Nworji, (2004).
