IMPROVING REVENUE GENERATION AND MANAGEMENT IN LOCAL GOVERNMENTS
A STUDY OF ENUGU NORTH L.G.A, ENUGU STATE
ABSTRACT
This research work examined improving revenue generation and management in Local governments in Nigeria, with Enugu North Local Government as a Case Study. The objectives of the study were to find out how training and orientation given to the people on field improves revenue generation, to evaluate how revenue management improves revenue generation in Enugu North L.G.A, to investigate how loyalty of tax payers improves revenue generation in Enugu North L.G.A, and to examine how benefits enjoyed by revenue collectors improves revenue generation in Enugu North L.G.A. The research method used was the survey research method. The sources of data were the primary and secondary sources of data. The major instrument of data collection was the questionnaire. The population of the study was 347. The sample size of 186 was determined using the Taro Yamane’s formular. The hypotheses were tested using the chi-square distribution formular. The data collected were presented in tables, using frequencies and percentages and analyzed using inferential statistics. The findings include that training and orientation given to the people on field improves revenue generation in Enugu North L.G.A, revenue management improves revenue generation in Enugu North L.G.A and loyalty of tax payers improves revenue generation in Enugu North L.G.A. The research concluded that revenue generation and management have not been significantly improved in Enugu North L.G.A. The recommendations were that local government should have availability of trained valuation staff, local governments should sensitize the people on the need for paying of taxes
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION     
1.1    Background of the Study                    
1.2    Statement of the Problem                    
1.3    Objectives of the Study                    
1.4    Research Questions                         
1.5    Research Hypothesis                     
1.6    Significance of the Study                     
1.7    Scope of the Study                        
1.8    Limitations of the Study                     
1.9    Operational Definition of Term                 
    References                             
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual framework of the study            
2.1.1    Definition and Meaning of Revenue             
2.1.2    Strategies of Revenue Generation             
2.1.3    Sources of Revenue Generation of Local
Governments in Nigeria                    
2.1.4    The Problems of Revenue Generation in Local Governments                             
2.1.5    Techniques and Tools for Achieving Efficient
Management of Local Government Revenue    
2.1.6    Ways of Improving Local Government Revenue Generation                             
2.1.7    The Need for Revenue Generation in the
Development of Local Government Areas         
2.2    Theoretical framework of the study            
2.2.1    Overlapping Authority Model                 
2.2.2    The System Theory                         
2.2.3    Arthur Laffer Theory                     
2.2.4    Ibn Khaldrun Theory                     
2.3    Empirical Revenue                         
2.3.1 Hypothesis one                        
2.3.2 Hypothesis two                            
2.3.3 Hypothesis three                        
2.3.2 Hypothesis four                        
2.4    Summary of Literature Review                 
2.5    Gaps in Literature review                     
2.6    Historical Background of Enugu North Local
Government Area                        
References                                 
CHAPTER THREE
RESEARCH METHODOLOGY
3.1    Research Design                         
3.2    Area of the Study                         
3.3    Source of Data                             
3.3.1    Primary Sources of Data                     
3.3.2    Secondary Sources of Data                 
3.4    Population of the Study                    
3.5    Sample Size Determination                 
3.6    Sampling Procedure                         
3.7    Sample Size Distribution                     
3.8    Methods of Data Collection/Instrument         
3.9    Validity of the Instruments                 
3.10    Reliability of the Instrument                 
3.11    Techniques of Data Analysis                 
    References                             
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data presentation and analysis                
4.2    Test of hypotheses                          
4.3    Discussion of findings                     
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                     
5.2    Conclusion                             
5.3    Recommendations                         
5.4    Contributions to Knowledge                 
5.5    Suggestions for Further Research            
Bibliography                                 
Appendix                                     
Questionnaire                                  
CHAPTER ONE
INTRODUCTION
1.1    BACKGROUND OF THE STUDY
    Development is a sine qua non for modern civilization. In a crusade and struggle to carry out development at all nooks and crannies of the society, the local government as the third tier of government that is nearest to the people is saddled with the responsibility of direct development of the people to a certain level .This is why any nation that aspires to be great gives great attention to the activities of the local government Bello(2015:66).
    Akintola  ( 2014:72), no organization can succeed without the needed fund to execute its various projects. The activities of the local government is  highly associated with fund, Much revenue is needed to plan, execute and maintain infrastructures and facilities at the local government level. The needed revenue generated for such development projects, like construction of accessible roads, building of public schools, health care centers, construction of bridges among others are generated from taxes, royalties, fines, haulages and grants from states, national and international governments(Ajayi , 2010:79).
Thus, the local government, cannot embark, execute and possibly carry out the maintenance of these projects and other responsibilities without adequate revenue generation. That is the basic reason why development is skeletal at some local governments in Nigeria. It is one thing to improve on the revenue generated by the local government councils, it is equally another thing to manage the fund. This is where corruption comes into effect. According to Ezema (2010:82), corruption has eaten deep into the fabrics of the Nigeria society, that any person that assumes or takes on any political position is expected to acquire as much money as possible. According to Bello (2011:56) corruption in the Nigeria local government, has passed the alarming stage and has entered the fatal stage. The local government will die, if it keeps pretending that it is only slightly indisposed.
    Moreso, we are used to hearing “Zero allocation” from various local government chairman. This is as a result of over dependence on funds from state and federal allocations and with the fall in the price of crude oil in the international market, the revenue generated by the federal government has equally been affected. The Nigeria local governments have failed to look inwards to sources of revenue through tourism and investment initiative and this has affected the revenue generated by these local government councils.
        In the words of Okonkwo (2014:72),revenue  generation has been an uphill task facing local governments in Nigeria. The need for revenue generation cannot be over emphasized the management of revenue generated in the local government constitutes the crucial and central component in the administrative process of the local government. This is largely so because finance determines the services rendered by the local government, and if adequate attention is not given to improving and management of revenue generated in the major hindrance to carrying out their functions effectively, then needed development in the rural areas, which everybody has been clamoring for, will definitely become a mirage. It is based on this backdrop that the researcher has decided to carry out a research on improving the revenue generation and management in local governments with Enugu North Local Government Area as a case study.
1.2    Statement of the Problem
    Inability to improve and manage the revenue generated by the local governments, has led to the local governments not carrying out any meaningful projects leading to lack of standard health centers ,lack of infrastructures like accessible roads, pipe-born water and lack of facilities in public schools etc.
    More so, it has led to the inability of the local government councils to pay the salaries to their workers. These days, we use to hear the local government workers receiving “half salary” and at times “zero allocation from the federal government, making the local governments inactive in carrying out their functions.
    Furthermore, the issue of poor revenue generation in the local government has led to the neglect of the needs of the people in the grass root. Some of these people are in the rural areas, and this has given rise to rural-urban migration.
1.3    Objectives of the Studym
    The general objective of the study was to examine improving the revenue generation and management in local governments. However, the specific objective include
1.    To find out how training and orientation given to the people on field improves revenue generation.
2.    To evaluate how revenue management improves revenue generation in Enugu North Local Government Area.
3.    To investigate how loyalty of tax payers improved revenue generation in Enugu North Local Government Area.
4.    To examine how benefits enjoyed by revenue collectors improves revenue generation in Enugu North Local Government Area.
1.4    Research Questions
    Based on the objectives of the study the following research questions were raised.
1.    How does training and orientation given to the people on field improve revenue generation?
2.    How does revenue management improve revenue generation in Enugu North Local Government Area?
3.    How does loyalty of taxpayers improve revenue generation in Enugu North Local Government Area?
4.    How does benefit enjoyed by revenue collectors improve revenue generation in Enugu North Local Government Area?
1.5    Research Hypothesis
    Based on the research questions, the following hypothesis were formulated
Hypothesis One
Ho:     Training and orientation given to the people on field does not improve revenue generation.
Hi    Training and orientation given to the people on field improve revenue generation.
Hypothesis Two
Ho:     Revenue management does not improve revenue generation in Enugu North Local Government Area.
 Hi:     Revenue management improve revenue generation in Enugu North Local Government Area.  
Hypothesis Three
Ho:    Loyalty of taxpayers does not improve revenue generation in Enugu North Local Government Area.  
Hi     Loyalty of taxpayers improve revenue generation in Enugu North Local Government Area.  
Hypothesis Four
Ho:    Benefits enjoyed by revenue collectors does not improve revenue generation in Enugu North Local Government Area.
Hi:    Benefits enjoyed by revenue collectors improve revenue generation in Enugu North Local Government Area.
1.6    Significance of the Study
    This research work will be beneficial to various local government chairman  as they will be more enlightened on how to improve on the generation and management of revenue in their local government area. The general public will benefit from this study as they can assess based on the developmental projects available. The student (researcher) will benefit from this study as it increases their data bank. The research work will serve as a reference material for future research on this topic.
1.7    Scope of the Study
    The research work covered the carious means of revenue generation in the local government and how to improve on the management of the revenue. The local government covered was Enugu North Local Government Area.
1.8 Limitations of the Study
    The researcher encountered some impediments in the course of carrying out this research work. Among them were time, finance and uncooperative attitude of the respondents.
Time: Part of this research work, was carried out during lecture period. This caused the researcher to miss some lectures.
Finance: The researcher spent some money browsing or sorting through the internet and printing out relevant materials, related to the research work.
Uncooperative Attitude of the Respondents: The workers of Enugu North Local Government council, were economical with information they thought the outgoing chairman, had sent the researcher to get information from their workers on the management of revenue generated, especially now that the government of Enugu State had proclaimed that the local government will be headed by caretakers committee including the Him of the local governments as a result of poor management of the revenue generated.
1.9    Operational Definition of Term
Revenue: This could be defined as the funds generated by the government to finance its activities. In other words, they money realized by the local government from commercial ventures and industrial establishment.
Generation: This is the process of sources revenue for this local government in order to carry out their aims and objectives.
Local Government: This is a political subdivision of a nation in federal system, which is constituted by law and has substantial control of local affairs, which include the power to impose taxes or exact labour for prescribed purpose.
Management: This is the process of getting things done, through and with people.
Statutory Allocation: This is the revenue received by the local government from the federation account. This share of revenue is fixed by law. Part of it, also comes from the state government total internally generated revenue base on percentage formular.     
REFERENCES
Ajayi, K. (2010) Rethinking Local Government Finance, Journal of Arts and Social Sciences 3 (3) 79.
Akintola .p. (2014) Local Government and Fund Utilization in Nigeria.Lagos;Longman press.
Bello, A (2011) Challenges before Local Government Administrators. Ibadan: Longman Press
Bello,M. (2015), Local Government and its Activities in Nigeria.Journal of Management Sciences 8 (2) :55.
Ezema, M. (2010) Poor Administration of Local Government in Nigeria. Journal of Humanities. 7(8); 82.
Okonkwo , k. (2014),Revenue Generation in Local Government in Nigeria.Journal  of Public Adiminstration.7 (17) 49.