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PROJECT TOPIC: THE PROBLEMS AND PROSPECT OF GENERATION AND MANAGEMENT OF REVENUE IN NIGERIA LOCAL GOVERNMENT (A CASE STUDY OF ASA LOCAL GOVERNMENT, ILORIN)

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CHAPTER ONE

  • BACKGROUND TO THE STUDY

Several definitions have been given to local government by various scholars. In most cases, these scholars defined local government as a political entity.

Leo and Anthony (1989) defined local government as subordinate unit of administration and vest in them the authority to perform local function.

Awolowo (1989) also defined local government as a system of government where in local council accepts responsibility for and implements their own decision subject to such control as may be exercised by the people through their own regional government.

The guidelines for local government reform (2000) defined local government as government of local level exercised through representative council, established by law to exercise specific power within defied areas.

In the year 2001, they also defined local government as a political sub-division of a nation or state which is constituted by law and has substantial control of local affairs including the power to impose tax or to exert labour for prescribed purpose.

From the above definition, one can deduce that local government is the unit of government administration at local level below state. It is a device from local expression to purely opinion with the aim of the country. Also, in the hierarchy of government, federal and state is expected to perform several functions such as the provision of social services like education, health, water supply, construction of road, general administration, e.t.c. local government has to generate revenue in order to finance or carried out the function above, among the ways of generating revenue are as follows:

  1. All form to tax (e.g. Direct, Indirect, Personal Income tax e.t.c)
  2. Grant and aids
  3. Gains from government investment
  4. Oil revenue
  5. Royalties from companies
  6. Development levy. e.t.c

Therefore, generation of revenue is very important for local government to finance their numerous functions. It should be noted that this study set out to examine not only the revenue sources a available to local government; it also intends to examine the problem encountered, management of revenue generated and possible solution to the problems.

Hopefully, the study will serve as sources of correcting those problems.


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