PROBLEMS OF REVENUE SOURCES IN LOCAL GOVERNMENT ADMINISTRATION IN NIGERIA (A CASE STUDY OF YAGBA WEST LOCAL GOVERNMENT AREA OF KOGI STATE)


PROBLEMS OF REVENUE SOURCES IN LOCAL GOVERNMENT ADMINISTRATION IN NIGERIA (A CASE STUDY OF YAGBA WEST LOCAL GOVERNMENT AREA OF KOGI STATE)  

TABLE OF CONTENTS

Title page……………………………………………………………………………..i

Certification………………………………………………………………………….ii

Dedication…………………………………………………………………………...iii

Acknowledgement…………………………………………………………………..iv

Table of Contents……………………………………………………………………v

CHAPTER ONE

1.0 Introduction…………………………………………………………………….1 

1.1   Aims and Objectives……………………………………………………………

1.2   Scope of Study………………………………………………………………….                                                                                                      

1.3   Significance of the Study……………………………………………………….                                                                                               

1.4   Research Methodology………………………………………………………….                                                                                                  

1.5   Literature Review……………………………………………………………….                                                                                                    

1.6   Definition of Key Concepts………………………………………………………                                                                                           

CHAPTER TWO: Historical Antecedents of Yagba West LGA

2.1   Evolution of Local Governments in Nigeria…………………………………

2.2   Historical Background of Yagba West Local Government Area………………...                                 

2.3   The 1976 Local Government Reforms……………………………………………                                                                          

CHAPTER THREE: Revenue Generation in Yagba West LGA

3.1     The Structure of Yagba West Local Area……………………………………….17

3.2      Revenue Generation in Yagba West Local Government……………………….18

3.2.1   Licenses…………………………………………………………………………19

3.2.2   Fines and Court…………………………………………………………………19

3.2.3   Gifts and Grants…………………………………………………………………19

3.2.4   Taxes…………………………………………………………………………….19

3.3      Problems of Revenue Generation in Yagba West Local Government……….....20

3.4      Problems of Yagba West Local Government Administration…………………..21

CHAPTER FOUR: Prospects of Funding in Yagba West Local Government

4.1   Federal Allocation and Management………………………………………………24

4.2   Prospects of Revenue Generation………………………………………………….26

4.3   Agricultural Development in Yagba West Local Government Area………………29

4.4   Industrial Growth of Yagba West Local Government Area……………………….29

4.5   Women and Youth Development…………………………………………………..30

        Conclusion………………………………………………………………………….30

        Bibliography……………………………………………………………………33

CHAPTER ONE

INTRODUCTION

1.0 BACK GROUND OF THE STUDY

Revenue has played an important role in the development of the local government administration in Nigeria. According to Wikipedia, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers1.Nigeria as a sovereign nation operating a federal system of government that is, it consists of the Federal Government, State Government and Local Government councils.Onwo (1992) observed that each level of the three tiers of government derives its powers not from the magnanimity of the central government but from the constitution; each level of government has defined responsibilities2. The evolution of local government in Nigeria has undergone a lot of changes. These are all geared towards making the local government a system that could serve the purposes for which they are created; grass root development. Nigeria was governed through the instrumentality of their traditional political institutions. These institutions were anchored on the people’s habits, thought, prestige and custom which are adapted to meet the new conditions for general development of their areas.

In 1986, the Babangida Administration made local government an effective third tier of the federal system, introduced reforms aimed at enhancing their autonomy and strengthening their administrative framework. All elected councilors constitute the legislative arm of the local government while the executive arm consists of the chairman, vice-chairman and supervisory councilors. The local government witnessed several reforms between 1991 and 1992. The reforms show a fundamental implication for local government administration, especially in regard to the reforms to the local government service. A total of 589 local government areas were in existence as of 1991.In the local government reforms, there was the establishment of the executive chairmanship of the local government with functions firmly entrenched in schedule for the constitution. Yagba west local government area was created on August 27th 1991 following the creation of additional states by the then president General Babangida Badamosi. Yagba West district has been in existence long ago since about 1947 when the traditional headship of Olu Okeri M.D. Dada was referred to as the AUTHORITY till late seventies3. When the military took over in 1972, efforts were made to restructure the districts. Meanwhile, the then Governor Bamgboye of Kwara state divided what was Yagba district into two called Egbe ( Egbe town council) and the west towns and villages( Area council)5. This comprises Odo-Ere, Odo-Eri, Ejiba, Odo-Ara, Iyamerin, Omi, Oga, Okunran, Okoloke, Okere, and Isanlu essa. It did not go well with the area council, as it was viewed as oppression. In the early eighties Hon Adebayo of Oga moved in the then Kwara house of assembly for the creation of Akumejo local government area integrating both Egbe and Area council. This was approved in 1982 and Akumejo local government area was created with its headquarters at Odo-Ere. These local governments, with many others in the country, wereshort lived.

          Thus, Akumejo local government area was abrogated along with others. But duringthe creation of the local government areas across the country, Yagba west local government area was created out of “Ajiwan” comprising all the communities both at Area and Egbe councils, with the headquarters at Odo-Ere.  In 1991a reformed Kogi state from formerKabba provinces was created out of Kwara and Benue states. The numbers of local governments in Okun land which comprised the former Kabbadivision rose from 2 to 4. The two Local Governments in Yagba referred to their colonial names of Yagba East and Yagba West local governments which were changed in 1982 to Akumejo and Oyi local governments respectively.

From oral history, Odo-ere has been the central meeting point at Okuta-dudu for the people of Yagba west, before and during the colonial era. The Odo-Ere customary court was the only native court in the early fifties that was presided over by all the Obas- Olu –Okeri, Elere, Eleri, Elegbe and Elejiba,thus establishing the centrality to other Yagba west communities. Odo-Ere has since then been the District headquarters.

        In Yagba West, the Area Council and the Egbe Town Council were merged into West Yagba joint council under the chairmanship of Oba J.I. Eledere. Aside from oral history, the first Oba Yagba, after an extensive deliberation among the Yagba people, it was agreed that the first Oba must come from Odo-Ere. Furthermore, all towns and villages in Yagba West, Egbe inclusive,attended crucial meetings at Okuta dudu, Odo-Ere. These informed the choice of the town to be the headquarters during the Akumejo local government period of existence and subsequently that of Yagba West Local Government Area. 

Change was difficult to accept by the communities.Some felt that such headquarters would be located in their own towns to boost the socio-economic and political status of their community. Whilst theArea Council was scattered into differentcommunities.About 14 communities were scattered all over the local government total.The Egbe Town Council came together at one place, portraying them as a large community because their villages were merged together to form an enlarged Egbe. It is with this impression that Egbe people agitated for the headquarters while other communities had less agitation for this. Some Egbe people believed their community is larger with many secondary schools, hospitals economic buoyance and other social amenities to justify their agitation.

1.1 AIMS AND OBJECTIVES

The purpose of this research is to critically analyze and appraise the problems of revenue sources in Yagba West Local Government Area as a case study. The specific objectives are:

1. To identify major problems of revenue sources in Yagba West Local Government Area.

2. To examine possible avenues for generating local government revenue service.

3. To find out whether or not the revenue is adequate for the council’s expenditure.

1.2 SCOPE OF STUDY

This is centered on the problems of revenue sources available to local governments in Nigeria during the period (1991 to 2011)but due to the vast nature of this topic, the researcher now chose Yagba West Local Government as a case study to deal with these particular problems as related to other local governments in Nigeria.

1.3        SIGNIFICANCE OF THE STUDY

The research will be of great benefit to the Yagba West Local Government administration as it will enlighten them on the potential sources of generating revenue. Revenue sources will also help the council to strengthen its financial base as the study would identify some problems hampering the revenue source in the council.

It is hoped that this study would be a guide to other researchers who may want to embark on a similar topic in Yagba west local government area in particular and any other local government council in Nigeria in general.

1.4 RESEARCH METHODOLOGY

     In writing this thesis, the researcher embarked of different methods for data collection.ie primary and secondary sources. A lot of efforts were put in place to go round all the towns and villages of Yagba west local environment area for oral interview. The researcher prepared a document containing some questions which served as a guide to the researcher. Care was taken to interview more than one person or group of people on each of the items listed for discussion to ensure the correct information was documented.

       On secondary source, books written on settlements on Yagba land and “O-kun” speaking communities were carefully read through for collection of information on the topic at hand. Also, some documents on local government reforms in Nigeria embarked upon by both the military and civilian administrations were carefully gone through. The researcher visited the university of Ilorin library to peruse some newspaper publications to see the reactions of some communities in Yagba west local government Area as soon as the creation was pronounced in 1991. Also, the university gave me some opportunity to go through some thesis written on Yagba west local council and “O-kun” speaking communities. All the information from these sources was collated for the completion of this thesis.

         There is a death of written work on Yagba west local council especially on problems of revenue generation in in the local council. As such most of the data collected on this thesis relied heavily on oral sources. In conducting interviews with informants, most of the people were politically biased in their discussions with the researcher at Egbe for example, where it was gleaving that some of their actions as soon as the pronouncement was made in 1991 were condemnable, they tried to justify their actions. Some of the informants had no idea of data. They associated some of their information with events in the land especially the illiterates they tried to justify why Egbe should be the right place to be chosen as the headquarters for the new council.

         It was equally difficult to get some of the former workers at the council at home for oral interview. The researcher had to visit some homes several times before they were available for interview. Some of the elders demanded for gratification before them. By and large, the information collected was collated in the production of this thesis. 

1.5   LITERATURE REVIEW

Since local government administration is the central focus of the study, it is important to commerce the examination of its basic principles.

A number of scholars amongst whom are HUME, MARTINES, W.A. ROBSON, have attempted so many times to define local government in different ways but they all reached a logical agreement as what should be the basic definition of local government.Local government, which can be simply described as government at the local level has been defined by various scholars in different ways. The United Nations Office for Public Administration defines local government as a political subdivision of a nation or (in a federal system) State, which is constituted by law and has substantial control of local affairs including the powers to impose taxes or to exact labour for prescribed purposes. 

Some authors described it as government at the grass root; it is often called the third tier of government.

 According to the Handbook of the reform of local government in Nigeria of 1976, local government it is defined as the government of local government level, exercised through representing council, established by law to exercise specific power within defined areas7.

          According to Adedeji and Rowland (1972), local government is a political sub-division of a nation or (in a federal system) state which is constituted by law and has substantial central or local affairs including the power to impose taxes or to exert labour for prescribed purpose. The governing body of such entity is elected or otherwise locally elected8.

 On the whole or in a broader context, a local government has the same essential characteristic with the state and federal government; what basically differentiate them are the sizes.

1.6     DEFINITION OF KEY CONCEPTS

          LOCAL GOVERNMENT: is a political subdivision of a nation which is constituted by law and has substantial control on local affairs, including the power to impose taxes or to exact labor for prescribed purpose.

ADMINISTRATION: It can be defined as the art of organization, directing and coordinating individuals or group of individuals towards a particular direction for the purpose of accomplishing a specific task.

          REVENUE: Revenue refers to all those moneys, each and otherwise received by way of statutory allocation, grants, subvention from higher levels of government, taxes, rates, licences, fees, royalties, loans and charges which enable the government to meets its day to day expenses 

CHAPTER FIVE

CONCLUSION

The statutory allocation forms the main source of revenue to the Yagba west local government area. The major problems of Yagba west local Government are the evils of corruption and perpetual mismanagement of public funds by the local government officials, lack of proper training and unqualified staff in the local government. The staff recruitment  to belong to low level educational qualification which has dominated Yagba West Local Government.

             Yagba west local government is encountering many problems in the task of revenue generation. Some of these are transportation problems, attitude of revenue officials towards public fund is another major problem, and this has become rampant as some revenue collectors divert the money collected into their private purse. Migration problems as inhabitants of the local government tend to move to urban areas in search of white collar jobs. This movement tends to affect revenue generation of the local government. No job for school levers at home which could have helped revenue generation in the council through check-off system.

             The internally generated revenue sources of the Yagba west local government include: local rates, markets taxes and levies, local license fees and fines from customary courts, tenement rate fees from schools established by the council, marriage, birth and death registration fees, earnings from commercial undertakings, rent on local government property, interest received and dividends, community poll tax, development levy. There is also Right of occupancy fees on lands in the rural areas, radio television licenses fee, earningfrom environment sanitation services, etc. The multitude of problems in terms of revenue generation in Yagba west local government area of Kogi State has for many years continued to hinder the growth and development of the council. It is only when these issues are addressed that the rural dwellers of Yagba west will enjoy full dividends of democracy, and also enhances the revenue base of Yagba west local government area for the social and economic development of the area.

.

PROBLEMS OF REVENUE SOURCES IN LOCAL GOVERNMENT ADMINISTRATION IN NIGERIA (A CASE STUDY OF YAGBA WEST LOCAL GOVERNMENT AREA OF KOGI STATE)



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