The impact of Local Government internally revenue is
likely to be felt by the people in the community in the sense that, all
development in the community area are been carried out by the Local Government
of the community. This is so because, in the local government, like any
organization, there are people with knowledge, technique, equipment and
facilities to work together or through integrated activities to provide social
amenities. The study was carried out suing a correlation study of descriptive
survey research design, which entails seeking information from Ifelodun Local
Government area of Lagos State. A total number of 100 respondents both male and
females with an average 18 to 58 years cutting across staff of Ifelodun Local
Government and members of community were selected through random sampling
method. They were given questionnaire seeking other personal dispositions and
responses relating to revenue generation and community development. The data
collected was presented in a tabular form using simply percentage and
hypotheses were tested using chi-square test of goodness of fit. The result
showed that, dishonest attitude of staff tend to affect revenue yield in local
government. There is no relationship between local government revenue and
community development. There is no relationship between revenue estimate and
actual collection of revenue at the grassroots level in Nigeria. The impact of
local government revenue on community development is likely to be felt by the people
in the community. In line with the above, the study to a great extent provided
answers to the research questions. Also it was revealed that factor like
finance, time and commitment plays a role in bring development to the community
areas. The study revealed that such effects has made little or no impact on the
TABLE OF CONTENTS
to the Study
of the Study
of Research Question
of Research hypothesis
of the study
of the Study
of the Study
of the Study
background of Local Government
of Local Government
for the Establishment of Local Government
of a Local Government
and Organization of Local Government
of Local Government Internally Generated Revenue
of Internally Generated Revenue in Local Government
in Local Revenue Generation
Recommendation for Encouraging in Local Revenue Generation
of the Study Population
and Sampling Techniques
of the Research Questions
of the Research Hypotheses
Collection Instruments and its Administration
and Reliability of the Data Collection Instrument
of Data Analysis
of the Methodology
AND ANALYSIS OF DATA
Analysis According to Research Questions
4.2.1 Analysis of Biographic Data
4.2.2 Analysis of Operational Data
4.3 Test of
CONCLUSION AND RECOMMENDATIONS
for Further Studies.
1.1 BACKGROUND TO THE STUDY
The constitution of the Federal Republic of Nigeria
recognizes Local Government as the third tier of government. According to the
United States Office of Public Administration, a local government is seen as a
political sub-division of a nation state, which is constituted by law and have
substantial control of Local affairs including the power to impose taxes or to
exact labour for peaceful purposes.
The local government system in Nigeria has undergone
several reforms among which were 1976, 1984, 1991 and 2003 reforms
respectively. The reasons for these reforms were to make the Nigeria local
government virile, independent and more functional. Literally, local government can be defined as
government at the local level exercised through representative councils. Local
governments are to exercise specific powers within defined areas: such as,
these powers should give councils substantial control over initiation and
direct provision of social services, in order to be able to determine and
implement projects to complement the activities of state and federal government
in their areas.
Government administration is useful in the provision of
public needs because the world changes.
It is hard to say that economic conditions, competition, public needs
and the other factors will be the same, some years to come. The importance of this process is that it
enables a government to help to shape its own future than to simply prepare for
The aims and objective of local government are to
recognize the increasing role of the government in the management of resources
and the provision of essential service to the community.
Community can be defined as a group of people living in a
geographically defined area or a group that interacts because of social,
economic or political interest. There
are thus many communities within each local government area. These communities like Ifelodun local
government have different needs some of which the local government is expected.
Generally, funds are always the main stream through which
the survival of any organization depends, especially for execution or carrying
out its civic responsibilities. The federal, state, and local governments like
any other organization have a range of functions which they are expected to
perform. In addition to the maintenance of law and order, these are other
functions like the provision and maintenance of certain social amenities and
services. For local government to perform these functions effectively they need
funds, they must have adequate financial resources.
Local government generates their funds from two (2) common
ways one is through Internally General Reserve (IGR) and the other is statutory
allocation. The IGR is revenue generated within local government areas, like
rates, fines etc, while statutory allocation are funds from the federal
government allocation, value added tax (VAT), state statutory allocation that
is 10 percent of the state's resources.
However, the three (3) tiers of government have their own
way of sharing the national collected revenue, which is based on the revenue
allocation formula. Even with the funds from the central pool, and local
government still face a problem of several fiscal imbalance, their revenue is
very small compared to their expenditure.
This research work is an attempt to highlight the problems
and prospects of internally generated revenue of Ifelodun local government.
Also the printing and control of revenue records and financial regulations by
the council and to discuss the short coming and other related constrains.
In this regards, the problem of collecting revenue,
function of revenue collection agencies, inadequate auditing and supervision,
as well as revenue mobilization will be the main focus of this research work.
From the foregoing, it is clear that Local Government are
to bring development or better life of the people at the grass root.
The Local Government under review, that is Ifelodun Local
Government was created or became an autonomous Local Government entity in
October 2003, with Prince Taiwo Adenekan at the helm of affairs and as the head
of the interim management committee (IMC).
During the 1976 local government, Ajeromi-Ifelodun local
government became known as Awori-Ajeromi District council and during
Brigadier Obasanjo's regime, Awori-Ajeromi was merged with Badagry local
government. In 1980, during the civilian era of Alhaji Lateef Jakande,
twenty-three (23) local government areas were created and Ajeromi-Ifelodun came
into being. Shortly later, the then military government reversed the status to
an area office under Ojo Government.
Ajeromi-ifelodun reclaimed its status in November. 1996
when the federal military government announced the creation of four (4) more
Local Government Area in Lagos State.
One cannot discuss the historical perspective of Ifelodun
Local Government Area in isolation without providing an insight into the
definition of traditional boundaries of rural/chieftaincy families.
The main reason is that, from time immemorial, descendants
of these royal or chieftaincy families by virtue of inheritance and blood
lineage have been the bonafide owners and custodians of land in all
ramifications, It is instructive to emphasize that land matters be it in the
old Ajeromi- Ifelodun entity or in newly created Ifelodun entity or in broader
perspectives in Lagos State is still vested exclusively on the indigene and
aborigine settlers, and they exercise
ownership and jurisdiction on demarcated boundaries and sphere of control.
Ifelodun Local Government, as it is presently constituted,
comprises of five (5) district communities that evolved from generation to generation
with common similarities. The five (5) communities are namely: Amukoko,
Mosaiejo, Layeni, Abuke Keke, Alaba Oro and Oke Oya Oridilu.
Historically, what is now called Ifelodun is part of the
vast Ojora land stretching up to Orile part of Surulere, Ebute Iganmu, Ajegunle
and part of Apapa. Ojora family like, their counterpart Aborigine landowning families
are the descendants of the first and early settlers on the islands of Eko now
Lagos, Iddo including Otto and Ebute-Metta on the mainland. These early
settlers were undoubtedly Aworis, a stock of Yorubas, mainly hunters and
fishermen who migrated from fishing settlements to the mainland and
crisscrossed from coast to coast to resettle at different locations within the
passage of time.
For administrative purpose, the local government
(Ifelodun) is headed by the chairman, followed by the secretary, and six (6) heads of department, heading
the six (6) various departments in the
local government council under which there are also various sectional heads,
heading the sections.
1.2 STATEMENT OF PROBLEM
Local government authority in the country has been
criticized for their inefficiency and ineffectiveness in rendering services to
the citizens. However, financial administration in local government are
defective because some of the officers created to support revenue generation
are badly directed and lack focus. At the end of the day, the cost of setting
up these offices out weight the benefits expected, yet they are retained and
maintained at the expenses of development project in the name of
Corruption also has eaten deep into the socio-political
fabric of the local government large percentages of revenue generated are
diverted to private pockets or traceable to a project that are of no benefit to
Due to the recent decline in its allocation from the
federal account, local government internal revenue mobilization, collection and
management have become a central issue to the successful operation and
management of the local government.
This is because its allocation from the federal account
cannot finance its programmes, projects as well as pay its staff salaries.
As a result of fluctuation in the federal allocation to
the local government which form more than 80% of local government source of income, the local
government find it necessary to redirect its effort to policies that will
improve the internally generated revenue.
It is this precarious financial situation of this local
government that arose the interest of the researcher to look into the problems
and prospects of local government internally generated revenue.
1.3 OBJECTIVES OF THE STUDY
This research has been motivated by the need to find out if
local government can reduce their over
dependence on statutory allocation. Towards this end, the study intends to:
To determine the extent
to which attitude of staff affect revenue yield and grass root development in
Find out if
there is a relationship between Local
Government internally revenue generation and community development
Examine the impact of
Local Government Revenue on community development.
To examine the
improvement in the effort to bridge up the gap between revenue estimate and actual
collections and grass root development in Nigeria
1.4 STATEMENT OF RESEARCH
The research question as derived from the objectives are:
1. How can dishonest attitude of staff in
revenue generation affect grass root development in Nigeria?
2. Is there any relationship between local
government internally generated revenue and community development?
3. Is the impact of local government revenue
on community development felt by the people in the community?
4. Is there any relationship between efforts
to bridge the gap between revenue estimated and actual collections and grass
root development in Nigeria?
1.5 STATEMENT OF RESEARCH
The statement of hypothesis are stated in their null (Ho)
and alternative (Hi) forms;
l. Ho: that
dishonest attitude of staff tends not to affect revenue yield in local
government councils in Nigeria
dishonest attitude of staff tends to affect revenue yield in local government
councils in Nigeria
2. Ho: There
is no relationship between local government revenue and community development.
is a relationship between local government revenue and community development.
3. Ho: The
impact of local government revenue on community development is not likely to be
felt by the people in the community.
impact of local government on community development is likely to be felt by the
people in the community.
4. Ho: There is a relationship between
revenue estimate and actual collection of revenue at the grass root level in
Hi: There is no
relationship between revenue estimate and actual collection of revenue at the
grass root level in Nigeria
1.6 SIGNIFICANCE OF THE STUDY
This study which is an attempt to diagnose the impact of
local government internally generated revenue on community development is of
immense important to:
1. Ifelodun local government: The
organization under consideration has some qualified revenue staff responsible for the
revenue generation in the organization. However, there are weaknesses which the
researcher intends to make recommendations to improve. The local government can
use such information for improved revenue generation.
2. Future research: This will serve as
secondary data to future researchers also intending to carry out research on
the impact of local government internally generated revenue on community
development. It will also help students in the school of business studies and
department of local government studies in having an in-depth knowledge of
3. The researcher: This work will also help
the researcher to enable him/her to know more about local government internally revenue generation and where there are lapses
and appropriate suggestion are made to the management.
1.7 SCOPE OF THE STUDY
The study is designed to cover the impact of local
government as it affects the performance of Ifelodun local government community
1.8 LIMITATIONS OF THE STUDY
This research work is limited to the survey of Ifelodun
local government attention would be on the impact of Internally Generate Revenue
(IGR) on community development.
The study is limited based on the fact that there is no
time and material resources to see to the whole government in Nigeria these
finding may not reflect or be valid for the whole local government in Nigeria
but by and large, what happen in Ifelodun local government can be said to apply
to other local government.
Lastly, finance and time would be another major problem to
be faced by the researcher. It is a general knowledge that every research work
requires money for its execution, the researcher being just a student
encountered some difficulties in getting the required funds for this project work. Time also has to be shared the
limited time with other academic work.
1.9 DEFINITION OF TERMS
Local government could be seen or defined as the
government at the local level exercise through representation' council
established by law to exercise
specific power within defined area.
Development has various meaning to various people in many
countries, the word connotes industrialization. To some, it symbolizes the
achievement of political independence, to others, it indicates opportunity for
education, the construction and provision of infrastructure for development and
the achievement of instantaneous worldwide communication.
In my view, development can be said to be the upliftment
of the standard of living of the people in terms of good roads, pipe borne
water, electricity, medical facilities and the general enlightenment of the
A community is said to be a group of people having a
geographically defined area that interacts because of political, social or
economic interest. However community development simple means bringing
advancement, better life, provision and maintenance of social amenities and
service to the rural population.
It refers to any income or return accruing to or derive by
the government of the federation at any level from any source without having
the exact detailed or figure about the amount,
This can be referred to as the government at the local
level. It is the government of the ordinary people in the society.
This refers to the ways or manner in which money or funds
are gotten, for the operation of any organization.
Internally Generated Revenue (IGR)
This is revenue or fund generated within an organization
in terms of local government internally generated revenue (IGR) are revenue or funds generated within the local government
area like rates, funds, fees etc.
These are funds assigned to the local government from the
federal account example of these funds are Value Added Tax (VAX) state
statutory allocation etc.
ORGANIZATION OF THE STUDY
This research work will be properly arrange and organized
Chapter one, consist of the introductory part which
includes, the general description of the area of study which gives a general
over view of the study or a general background on the chapter. This chapter
also includes the statement of problem, objective of the study, research
questions, and statement of hypotheses, scope/ limitation of the study,
definition of terms and lastly the organization of the study.
Chapter two emphasizes the literature review which is the summary
finding of result of precious one related to
the study. This chapter consists of the following:
The introduction (implicit) review of related literature
in the area of study and lastly the theoretical framework of this study and
summary of the chapter.
Chapter three is based on the method to be used in the
study. This methods includes: introduction (implicit), restatement of research
question and hypotheses, research design, population of study, sample and sampling
procedures, data collection instrument, administration of data collection
instrument, Data collection procedure, procedure of data analysis, limitation
Chapter four entails the analysis of biographic data
related to the questionnaire. This includes among others: the introduction
(implicit), respondents characteristics and classification, presentation and
analysis of data according to research question, presentation and analysis of
data collecting to test of hypothesis. Discussion of findings.
Chapter five consist of: Introduction (implicit), summary
of findings, conclusion, recommendations, and suggestion for further studies