LOCAL GOVERNMENT AND CHALLENGES OF REVENUE GENERATION IN NIGERIA: A CASE STUDY OF OREDO LOCAL GOVERNMENT COUNCIL OF EDO STATE

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ABSTRACT

The study examined Local government and the challenges of revenue generation in Nigeria: A case study of Oredo local government council of Edo State. The population of the study comprised employees of Oredo local government secretariat which is given at 652. A sample of 163 was derived from the population using the Taro Yamane formular. The simple random sampling technique was used to select the respondents from Oredo local government council employees. One instrument titled “Local Government and the Challenges of Revenue Generation Questionnaire” (LGCRGQ)” was used to collect data for the study. Five research questions and two hypotheses were raised for the study. The analysis was done using frequencies, percentages, mean for the research questions and Pearson Product Moment Correlation to test the hypotheses.

Findings from the analysis revealed that inadequate funding, corruption, lack of autonomy, poor budgeting and accounting system and over dependence on oil as source of revenue from the federation account affected revenue generation.

Based on the findings, it was recommended that there is need to embark on effective decentralisation policy that would discourage overconcentration of power and resources in the central government. Persons convicted of corruption or other economic crimes should be disqualified from holding public office or participating in politics. The abolition of state joint LG account from the constitution to ensure allocation of funds directly to the LGs. Local government officials should be equippedwith better education and training and a soundorientation about proper and effective budgeting and accounting mechanisms, accountability and transparency must be encouraged and promoted in the local government administration system so as to attain good governance for effective development at the grassroots level. Federal Government should strengthen the implementation of the measures for strategic revenue growth initiatives, since the government recognised the necessity, relevance and challenge of revenue generation in discharging constitutional responsibilities of government at various levels.

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