1.0 Introduction
One of the greatest problems facing local government administration in Nigeria today is unarguably finance. Essentially, this is needed for the execution of their statutory functions. It is now an established facts that funds from the existing traditional sources (internal, external and loans) are for one reason or the other inadequate to cope with the present-day demand of governance.
Also, it has been discovered that those officials entrusted with revenues collection of the local government treasury are not competent. Again, companies and individuals shy away from declaring their real profits(s) at the end of fiscal year, thereby making it difficult for tax officials to know how much tax they should pay.
In this works, I will examine various sources of revenue generation and strategies to be adopted so as to improve revenue generation. Efforts will also be made to proffer suggestions on ways of revenue improvement where possible, though no matter the strategies or suggestion(s) successful revenue generation depends on the treasures, the chief account office, revenue officials and the effective chairman.
1.1 Background of the Study
Ohafia Local government is situated on the cross River Basin. It is bounded on the North by AfiKpo /Edda Local government in Ebonyi state; in the south by Arochukwu .L.G.A.the three main clans of Ohafia included Ohafia main land, Abriba and Nkporo.
In 1976, Arochukwu-Ohafia L.G.A was created by the Federal Military government but in 1983, Ohafia L.G.A was in first administered by chief Barrister Ogbonnaya Dike from Abia village. The local government Head quarter is Isiama which has become a cosmopolitan center. The people of Ohafia are noted for their farming prowess, they produce agricultural products such as yam, palm oil, palm Kernel, cashew nuts, timbers, groundnut, Garri etc. these products are a source of revenue to the local government.
The local government has not been able to attract either state or federal government investments except federal Army Barracks. The people are noted for their trading activities hence, the name Ohafia. The people of the market besides training, are noted for their hospitality to strategies.
The famous Obanyi Isingwu, Uduma and Usmang Abriba to name but few are the only source of water supply. During dry season, water is always scarce. It is necessary to observe that the famous celebrated wear dance, Ekpe cultural dance and (Dibu ugwu Dance) are a beauty to behold. Therefore this study shall examine the remote cause of not generating adequate internal /revenue in Ohafia local government area to be precise and the way out of this problem.
1.2 Statement of the Problem
The purpose of this work is to final out various sources and strategies for improvement of local government revenue in Abia state with special reference to Ohafia L.G.A. The collection and revenue generation has been one of the main problems of local government. However, to generate their own internal revenue has aroused the curiosity of the researcher to investigate into the remote causes of not generating internal revenue and proffering suggestion(s) where necessary.
1.3 Objectives of the Study
I. To help the policy markers, officials and administrations of local government as well as students of local government and public Administration on the general finance of any local government.
ii.To find and expose those influences that constitute problems to the topic under study.
1.4 Research Questions
The local government system as a third tier of government in Nigeria is charge with enormous responsibilities as contained in the four the schedule of the constitution of the federal republic of Nigeria (1999). These responsibilities required availability of enough revenue to discharge it.
The inability of local government to raise their own internal revenue and the difficulties associated in revenue collection aroused the curiosity of the researcher to investigate into the remote causes and proffer remote cause and proffering suggestion (s) where necessary.
Specifically, I will examine the following questions.
- Why do local governments source for revenues?
- Are there any known sources for revenue?
- Will the revenue help in providing the necessary infrastructural needs of the local people?
- Who manages the revenue of the local government?
- Does a federal and state government allocation prevent local government from sourcing for more revenue?
- Is federal and state government the major source of local government revenue?
1.5 Significance of the Study
The sources and strategies for improvement of local government revenue is an interesting and researchable topic. This work will enable the local government executive to know the various ways the council generates its revenue and thereby putting him in a position to make enabling decisions on how to use the hard earned revenues.
In fact, the topic under study is part of business studies, this study will highlight the problems that militate against revenue collection in Abia state, it will also serve as parameters to other people who may wish to contribute their own ideas to this topical issue. The society and indeed the local people will benefit lot from the study.
1.6 Scope of the Study
This study will cover the area of problem emanating from collection of revenue. In Abia state, which does leads to stress. This study though limited to Abia state will not lose sights of the facts that it should be done in such a way that will make it relevant to any other local government In other states. Though the research does not intend to deviate from the focus of this study but will rather study every aspect of it given the available data and information.
1.7 Limitation of This Study
Every effort will be made to carry out this research work meticulously, though there is certain limitation due to opposing variables militating against the progress of the research, the factors are stated below.
I. Finance:
only the economic realize the cost of things as regards to the research about making other necessary provisions and findings.
Ii. Time:
There is a limited time frame available for the study, which results mainly dues to the shortness of the academic session. This time factor will in no small way effect the study.
Iii. Academic Workload:
There are other opposing factors in the sense that equal attention has to be paid to other assignments.
1.8 Definition of Terms
For the purpose of understanding and clarity, the following terms are defined in the content in which they apply in this work.
Revenue:
this applies to all monies realized either from the federal or state government or internal source.
Local Government:
This is a forum of public administration which in a majority of contents, exists as the lowest tier of administration within a given state.
Strategies:
this is the direction and scope of an organization over the long term which achieves advantage for the organization through its configuration of resources within a challenging environment, or it is a plan of action designed to achieve a specific goal.
Source:
Sources are those points at which something spring into being or from which it derives is or are obtained.
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