LOCAL GOVERNMENT

ADMINISTRATION AND PROBLEM

OF REVENUE GENE7RATION
(A CASE STUDY OF OKE-ERO LOCAL GOVERNMENT)

PREPARED BY

KOLAWOLE SIMBIAT OPEYEMI

ND/12/PA/FT/390

BEING A PROJECT SUBMITTED TO THE

DEPARTMENT OF PUBLIC
ADMINISTRATION INSTITUTE OF FINANCE
AND MANAGEMENT STUDIES, KWARA
STATE POLYTECHNIC, ILORIN.

IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR THE AWARD OF
NATIONAL DIPLOMA (ND) IN PUBLIC
ADMINISTRATION

JULY, 2013
ii
 CERTIFICATION
This is to certify that this research work was carried out by
Egbe Ogah Moses with matric number ND/10/PA/PT/036 under the
supervisor of MR SHAYE AYODELE and that has met the
requirement for the award of National Diploma in public
administration. Under the institute of finance and management studies
IFMS.
SIGNED
______________________ __________________
MR. SHAYE AYODELE DATE
Head of Department

______________________ ________________
MR. SHAYE AYODELE DATE
Project Supervisor

______________________ __________________
MR. J.A. BAMIDELE DATE
Project Coordinator
DEDICATION
This project is dedicated to Almighty God for speaking my life
to this day and for making my education attainment a reality. And
also to my entire family most especially my parents, my late father
AKINBOWALE HACCOGINE EREJUWA FUNDER OF HOLLY
TRINITY CHURCH OF GOD ERUN-ONA ERO ONDO STATE.
May your soul rest in perfect peace. Who has contribute the large
share to my success. May the Almighty God continue to bless them in
Jesus Name (Amen).

iii
 ACKNOWNELDGMENT
My deepest gratitude goes to almighty God the Alpha and
Omega, for the grace given to me from the very first day I started this
programmes till the end. Thank you lord.
Special thanks to my project supervisor Mr. SAIYE
AYODELE for his criticism and advise given to me and whose effort
has contributed a lot to the completion of this project may the lord
continue to increase his knowledge.
My sincere gratitude also goes to my dearest late father MR.
AKINBOWALE EREJUWA HACCOGINE the funder of holy
trinity church of God, Eru-Ona-Ero ondo state. And my caring and
loving mother MRS. MAGARET EREJUWA (EMINARE) for
their moral and financial support through out my programme may the
lord continue to protect and provide for them (Amen).
Also my profound gratitude goes to my brothers and my one
and only sister, EREJUWA OMOLADUN (engineer), EREJUWA
SAMIOLU (Adoration), EREJUWA OLAWALE (Holly boy),
EREJUWA BIDEM (Bidex). EREJUWA EDAWOJU (mama G.)
EREJUWA KOLAWOLE (omo. J), for their brotherly advice, I
pray that the lord will bless you all (Amen).
Finally, I also want to acknowledge the motherly support of
MRS. EREJUWA, MUMMY TUMU and my Grand mama.
May the grace and bless of God be with you all in Jesus name
(Amen).
iv
 TABLE OF CONTENTS
Titles pages i
Certification ii
Dedication iii
Acknowledgment iv
Table of contents
CHAPTER ONE
1.1 Introduction 1
1.2 Concept of the study 3
1.3 Scope and Limitation 5
1.4 Aims and objective 5
1.5 The importance of the study 7
1.6 The conceptual meaning of terms used 8
1.7 Organization of the study 9
References 12
CHAPTER TWO
2.0 Literature Review 13
2.1 Introduction 13
2.2 Principal aim of local government 15
2.3 Local government reform 18
2.4 Function of and aim of local government 19
CHAPTER THREE
3.0 Research methodology 22
3.1 Introduction 23
3.2 Sample and population of the study 23
3.3 Sources of data 29
3.4 Research problem 31
CHAPTER FOUR
4.0 Data presentation and analysis 36
4.1 Introduction 36
4.2 Brief history of the case study 36
4.3 Analysis of data 37
v
4.4 Duties and responsibility of revenue collectors 40
4.5 Source of revenue to Oke-ero local government
(Internal sources) 43
4.6 External sources 50
4.7 Problems of revenue generation in Oke-ero 51

CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation 55
5.1 Summary 55
5.2 Conclusion 58
5.3 Recommendation 60
References 63
Bibliography 64
CHAPTER ONE

1.1 INTRODUCTION

Revenue generation simply means raising funds in

the most economic and suitable manner.

The history of revenue generation in Nigeria is

traceable to eighteen century before the coming of the

British when the Fulani empire was in place. When the

vi
emirates were divided into district and villages and when

the Hakims district head were made tax collectors.

Hakimis were to collect different types of taxes such

as jangali live stocks tax land tax khareyi and the

capitation tax called Gandu in cowry-shell currency for

the Gmir who was more or less the government.

The modification later made to this system by

fedrick lugard and the subsequent native revenue

ordinance of 1917 could be said to be the evolution of

revenue generation of the modern local government

administration system of the worth. Though the

amending ordinance passed in 1918 extended the

provision of 1917 ordinance to the south and individual

resident in the colony area composed of Lagos, Epe and

Ikorodu, the jurisdictional areas of the administration of

the colony.
vii
 However, in 1927 another legislation was enacted

which imposed tax on all native adult and non-native

alike in Nigeria.

Today neither the orthodox method of revenue

generation nor the native authority system of local

government in the north and south exist.

The Nigeria local government reform of 1976 has

mode the modern local level indeed. Now it is a

government exercised through representative council of

the local citizens established by law and strengthened

with specific powers of substantial control over affair

institutions. Staffs and finance for the initiative and

direct the provision of service and also to determine

activities of federal and state governments in their areas

as well as to ensure through devolution and through

activities participation of people and traditional

viii
institutions that local initiatives and responses to needs

and conditional are maximized.

Based upon these premises in which the modern

local government abode, it need to be viable for it to

achieve the objectives and purposes as assigned to it by

the constitution the ability of local government in turn

depends not only on the nature of power apportion to it

in the political system of the society as well. Local

government in is proper sense should be able to finance

itself. It should be able to make its rules and regulations

to perform its functions and to control its affairs.

Consequently it is imperative that every body is

involved that the entire people all able bodied citizens of

the council area involved and mobilized to participate in

the local government of funds for good governance and

the council activities for effective local development. An

ix
effective local development is local populace in the local

fiscal policy formulation and execution.

1.2 CONCEPT OF REVENUE GENERATION

Revenue as defined by oxford advance learners

dictionary of current English is income especially the

total annual income of the state, government department

which collect money for public fund.

As related to local government, revenue is any

income proceed or returns accruing or derived from the

high or levels of government or from any other source

including.

(a) Any receipt how ever distributed arising from the

operation of law

(b) Any return how ever described arising from or in

respect of any property held by the local government

x
(c) Any return by way of interest on loan and dividends of

share or interest held by the local government in any

company or statutory body.

Revenue generation is the art of securing for money

or funds to accrue to the local government from tax and

rates, fees from licenses permits. Charges from

commercial services and grants statutory allocation form

federal or state government and any other source not

here specially mentioned but out of which the public

expenses are defrayed

1.3 SCOPE AND LIMITATION OF STUDY

The study is been limited in scope of Oke-ero Local

government area. the study provide an insight to the

various sources of revenue to local government, the types

of revenue machinery, its method of collecting,

xi
administrative, efficaciousness and other wise and well

as prospects.

1.4 AIMS AND OBJECTIVE OF THE STUDY

The purpose of writing this project is to highlight

the problems challenges or hindrances and prospects

associated with revenue generation generally and in Oke-

ero local government is the extent of its financial

independence even when more public goods and services

and demands become necessary for the society to live

averagely comfortable its ability to control most of its

financial resources has a great deal to do within its

capacity to discharge competently its functions. Next to

this fact is that for local government to be able to excite

the functions allotted to it by the constitution as the

third tier government efficiently, it must have not only

xii
execute capacity and discretionary powers but also

adequate finances.

Since most of these function and services cannot

lend themselves easily to individual ownership because of

the huge capital out-lay necessary for their execution it

thus requires team efforts greatly from the locality,

federal government and from state government who

should be frank in the pans it plays to pull researches

together for local government so as to provide these

indispensable goods and services that require colossal

sum of money for their provision.

As result of the above the solution to the perennial

financial crisis faced by local government can only be

fund in efficient and effective generation of revenue.

The general principle is to provide an insight the

generation attitude of the people of this local government

xiii
in the course of revenue collection and to give meaningful

advice and various recommendations on how these

problems can be overcome so as to ensure the

effectiveness collection of various revenue in local

government.

The write up will show the efforts made by the local

government to reduce the problems encountered during

revenue generation and prefer some useful suggestion or

recommendations on how to effectively and efficiently

generated more revenue for the local government to

enable it implement it programmes for which it was

established.

1.5 THE IMPORTANCE OF THE STUDY

The fact remains that local government is the basic

cell of the series of the decision making levels of a nation.

But the fact also remain that Nigeria local government

xiv
council are severally limited by paucity of financial

resources this situation makes it imperative for every

student public administration and local government

management that want engender ways out of the poverty.

This work being and engagement in these direction

s will surely benefit sets of policy formulators policy

implementers public managers and local government

employees the various issues that are reviewed or

analyzed and recommendation that are preferred shall

certainly be of good assistance to the people in their

official engagements the research work may also benefit

future research work may also benefit future researchers

in their fields serving as resource of reference for their

works.

1.6 CONCEPTUAL MEANING OF TERMS USED

EFFECTIVE OPERATION: effective operations are

xv
operation that optimally served the objectives themselves

are optimal in relation to higher objective.

EFFICIENT OPERATION: These are operations in which

the ration of out put produce to resources used is the

highest desirable one under the prevailing circumstances

that is those operations in which the optimal processes

are employed to covert resource available into services

and goods they are intended to produce.

SPECIAL GRANTS: Special grants are made tied to

important national or state economic or social

programmes to be handled by the local government.

REVENUE ALLOCATION: Revenue allocation is a

mechanism or a system whereby the local government

has a direct share of its specific item or the total

nationally derived revenue.

xvi
STATUTORY ALLOCATION:- These allocations are by

both the federal and state government in principle

statutory allocation are intended to cover both recurrent

and capital requirements of local government.

SPECIAL RATE: These are rate levied adult in a local

council area for special purpose such as education and

water supply. Some people call it development rate.

FLAT RATE TAX: it is a common rate levied upon every

male adult in a local council area payable only once in a

year.

1.7 ORGANIZATION OF STUDY

The study is organized and divided into five unequal

chapters for a better understanding and for on easy

development of point so as to be able drive the facts

embodied in the topic home clearly.

xvii
 Chapter one this chapter is the background of the

study it is the introduction into the topic (local

government administration revenue generation). The

chapter went further to discuss relative issues such as

the concept of revenue generation scope and limitation of

the study, aim and objectives of study type of research

method used and the importance of the study.

Chapter two:- This is the literature review just as

the little portray it consists of the review of ideas views

and opinions of some other authors as related to the

write up so that the can shed more light on the discuss

for instance Geoff and Sean Honan gave us on insight

into what revenue generation, policy on revenue

generation the (principle aim of local government and the

ideas and opinions of the local government reforms as

related to revenue.
xviii
 Chapter three: This chapter is mainly about the

historical background of Oke-ero area the people their

local government and the structure of the local

government it tries to explain in a simple manner the

history, composition, cultural heritage of the people their

religious belief ceremonies tourism attractions in the

land and functions of their principal officers alike.

Chapter four: This is the analysis and interpretation

of data which are affirming the overwhelming financial

dependence of local government on federal and state

governments funding the duties of collector’s sources of

revenue open to Oke-ero local government and problem

of revenue generation in Oke-ero council area.

Chapter five: This chapter deals extensively on what

it take on change the trends of financial dependence of

xix
the local government to a better financial position of self

reliance and financial buoyancy.

REFERENCES

Anyawu U.D local government of administration

(1996:120).

Awolola F.O public financial management student

companion (1997:2)

Oladosu S.A Kaduna Essay in local government

(1981:135

Ajayi .R. local government reform under president

Babangida (1995:55)

Oxford Advance Learners Dictionary of current English

(1974:725)

Local government law (1983:12)

xx
 CHAPTER TWO

2.0 LITERATURE REVIEW

Revenue means the sum of money generated in a

particular period of accounting year expenditure is the

total amount of money spent within an accounting year.

2.1 INTRODUCTION

This is major sources of government of revenue is

by taxation yet it can not do without some either miner

sources of revenue that are opened through persons who

are mode contribute part of their income with a specific

amount for the purpose of administration and

development of the society.

According to (OLAOYE 2008) revenue generation in

Nigeria local government is principally derived from tax

meanwhile tax is a compulsory levy imposed by

xxi
government on individuals and companies for the various

legitimate of the state.

According to (Ojo. 2003), tax is a necessary

ingredient for civilization. The history of man has shown

that man has to pay tax in one form or the other that is

either in cash or in kind, initially to his chieftain and

later on a form of organized government. No system or

rules can be effective whether foreign or rules can be

effective whether foreign or nature unless it enjoys some

measure of financial independence.

According to (RABIU 2004) local government in

Nigeria has developed over a number of years historically,

the development of direct taxation in local government in

Nigeria traced to the period before the British pre-colonial

period under this period community tax were levied an

communities. Recently the revenue that accuse to local

xxii
government is derived from this broad sources. Viz the

external source and internal sources.

Taxation can also be defined as compulsory

payments levied by the government not impose by any

legal offences but levied by the authority to meet the

activities of the government in carrying out its objectives

and functions.

The objectives of Nigeria revenue (Taxation) point to

what local government revenue stands for these

objectives are stated below:-

(a) It used to create social amenities

(b) Increasing the incentive to save

(c) Mitigating economic inequalities

(d) Restraining consumption resources by transferring

consumption resources to investment

(e) It modifies the pattern of investment

xxiii
(f) Transferring of resource from hands of government

(g) As a measure of discouraging some social

2.2 PRINCIPAL AIM OF LOCAL GOVERNMENT

The principle aims of local government are:

1. To bring self government to the levels of the society

and to encourage initiatives and leadership and

leadership potentials

ii. To makes appropriate services and development

activities responsive to local wishers and initiatives by

devoting or delegating them to local representative.

iii. To mobilizes human and material resources through

involvement of members of the public in their local

government.

iv. To provide two ways system of communication

between the local communities and the government (both

state and federal).

xxiv
 In the course of fulfilling all the above mentional

function the following services are provided to the

statutory grant to them by the (federal government and

the state respectively).

The services include the following.

(a) Building a market and motor parks.

(b) Sanitary inspection refuse disposal cleaning of the

public gutters.

(c) Control of distractive pest which are harmful to

human being and plant like termites and rates

(d) Contractive and control of slaughter house and slabs.

(e) Public conveniences.

(f) Burial ground.

(g) Registration of birth death and marriage

(h) Provision of community and local relation centers.

xxv
(i) Licensing supervision and regulation of baked house,

eating house and laundries.

(j) Licensing regulation and control of sales of liquor

(k) Licensing and regulation of bicycles (other than

vehicles which are mechanically propelled) and canoes

(L) Control of keeping animals.

(m) Control of hearding advertisement the use of loud

speakers and during particularly nears the public place

of worship.

(N) Warming of Road Street and numbering of plot and

buildings.

(O) Control and collection of revenue from private forest

estates.

(P) Collection of community tax, property tenement rate

and other designated rate revenue

xxvi
(Q) Collection of vehicle parking charge fees and

contribution of parking spaces and provision of health

services.

2.3 LOCAL GOVERNMENT REFORM

Before the introduction of the reform it was noticed

that old system failed to make the desired impact at local

level due to political and administrative reasons.

This was continuous crosion of the power of the

local governments.

Government was far from the rural dwellers, human

and materials reasons were grossly in adequate excessive

politic king had made even modest progress impossible.

Consequently there was a clear divorce between the

government in Nigeria.

The reforms aimed of changing the old system in

order to:
xxvii
(a) Make the appropriate source and development

activities responsive to local and initiative by delegating

them to local representative bodies.

(b) Encourage local participant in democratic self

government and the base level.

(c) Provide a dual-way channel of communication

between local communities and government (federal and

state).

In short, the reforms were necessary to strengthen

structures at the local government through the federation

for the development at the grass root.

2.4 FUNCTION AND AIMS OF LOCAL GOVERNMENT

Function and aims of local government the local

government edict No 8 of 1976 as contained in kwara

state Gazette extra ordinary no 33 volume 10 of 6 th

December 1876 supplement path “A”.

xxviii
 In (1979-1983) at the regime of Shehu Shagaris.

Nigeria believed that Shehu Shagaris administration will

follow that of 1976 local government reform. But the

reform was never realized because the civilian

government that implemented the reforms was not

committed to the ideals of local government the point is

that if the reforms are entrenched in the 1979

constitution were implemented with the zeal and envision

it deserved local government would have been very

functional and effective this is because the faithfully

implementation would have enable local government to

be relevant to the people at the grass roots.

Essentially, local government would have served

them as expected by providing essential amenities

thereby justifying its existence.

xxix
 But a critical look at the implementation of the

reform by the high level i.e. the federal and state

governments of the second republic clearly indicated total

lack of commitment to the ideals and principles of local

government as an administration unit.

Evidently, local government was made a political

issues during the second republic, this was because the

civilian government highly politized the system and local

government was used for the purpose of partisans reward

or punishment.

As smith and Owojaiye in (1981) rightly observed,

dissolution has been used to punish are as that did not

give electorate support to the party in power more

importantly state government in the period under review

did not respect their financial obligations to local

government in term of size and resource base the (1976)

xxx
reform carved the country into 301 local government

areas.

But under the civilian administration of second

republic, local government because mere structured

decorations.

This was because political considerations rather

than reasons of viability and need promoted the

proliferation of local government councils nation-wide.

xxxi
 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

Research methodology is the process of collecting

data and information for the purpose of making business

decision the methodology may include public action

research interviews, surveys and other research

techniques and cloud includes both present and

historical information.

Information is a data that is a accurate and timely

specific and organized for a propose presented within a

context that give it meaning and relevance and can lead

to an increase in understanding and decrease in

uncertainty.

Information is valuable because it can affect

behaviour, a decision, or out come, for example if a

manager is told his/her company’s met profit decreased

xxxii
in the past mouth he/she may used this information as a

reason to cut financial spending for the next mouth. A

piece of information is considered valueless, if after

receiving it things remain unchanged.

3.1 INTRODUCTION

Research can however be define as a scientific

method of investigation with the aim of discovery the

truth or fact about an issue so that human knowledge

may be increased and theories principle laws and general

lization may be developed.

3.2 SAMPLE AND POPULATION OF THE STUDY

A sample is a part of the population, it is a

representative of the population in which proper analysis

provided to give insight to the characteristic of the

population there are sixteen (16) local government in the

xxxiii
state population that carries out the some operation

under study. The sample of this study is Oke-ero local

government area.

In defining a population for study such a population

must be specific enough to provide readers a clear

understanding of the applicability of your study to their

particular situation and their understanding of that same

population it therefore becomes important to select the

proper method of sampling the process by which

representative individual are randomly selected to

provide insight into the enter population under study the

four methods of doing this includes sample random

sampling stratified sampling cluster sampling and

systematic sampling.

Sampling random, sampling entails defining the

population to be studied determining the percentage of

xxxiv
this population to be interviewed or studied assigning

each individual within the population a number and then

using arbtrality selected numbers from a table of

numbers, giving each individual an equal chance to be

selected for inclusion in the study in this manner, a

sufficiently random sample of the general population

become representative of larger whole.

Stratified sampling involve identifying subgroups of

the population representative of the percentages of those

same subgroup in the general population on being

studied or to equal numbers of individual with in

different subgroups for the purpose of the comparing

their responses to those of other subgroups. Again as

with the sample random sampling determined all

member of the general populations are classified with one

of identified subgroups of the population.

xxxv
 Again a random numbers is selected and each ninth

individual for example in interview of studied.

Cluster sampling randomly select groups rather

than individuals to be include in a study the procedure

for selecting sample are the same as a sample random

sampling except that we are now selecting random class

of French 101 student out of the overall population of

French 101 class across the eastern seaboard.

Systematic sampling is largely the same process except

that it involves selecting an individual or cluster on

random and then in accordance with the desired sample

size including every eight or tenth or 25 th person or

cluster in the study.

Non random sampling is the alternative used when

random sampling is not a viable option there primary

methods include convenience sampling this is the

xxxvi
practice of grabbing whoever is handly or willing to

participate purposive sampling involves selecting

individual know to meet contain clear criteria such as

attending a prestigious traction repair, school in Vermont

relies on interview or studying members of particular

demographic subgroup such as working mother age 12-

18 or 35-49 years old men who regularly attend star

frank convention while dressed up like klingons.

Sampling method deffer somewhat in qualitative

studies, these methods include intensity sampling

whereby participants are selected who enable study of

differing level in the subject under study such as wining

poker players and consistently losing poker player.

Homogenous sampling is the selection of similar

outlook and or backgrounds and examiners their views

as a group criterion sampling is apparently the

xxxvii
alternative name of choice for purposive sampling when

it’s applied in a qualitative study. Essentially it is no

different a set of criteria such as basis for individuals

being selected for the study. Snowball sampling is a bring

your friends approach in which participant identity other

people who would also meet the requirements of a

particular study finally there is the antithesis to this

approach which is called random purposive sampling in

which a select few of a larger qualified group are

randomly selected to participate.

Research variables include normal variable which

classily subject sharing some common characteristic into

two or more categories such as that owner or non-hot

owner conservative or liberal or turtle soup collector or

non-turtle soup collector ordinal variable rank subject in

numeric order from highest to lowest such as NB point

xxxviii
guards seasonal assist total or widest to least wide

picture frames. Internal variable have the same

characteristic of the first two verities of variables but also

have equal intervals so that a test score of 39 differs from

a test score of 42 in exactly the same proportion as a

score of 57 differs from 60. ration variable are similar but

start their scale at true error assigning it a valuer

predictably or/error thus mums score of 37 indicating

the number of kicks required to break down a door is

exactly proportional to the score of 1 kick from my

boyfriend assuming the door and all other conditions

were identically.

All of this lead us to the measurement or as well in

the educational field refer to them “test” what is being

measured must be unambiguous the test instructions

xxxix
must be clean and uniform applied and the

interpretation of the test result must be objective.

A research project, if is to be of my use at all must

accurately measure these variable test from the basis of

the research the criteria must be clear and research

conditions must be demonstrable based on the data

collected the collection of the data must be embraced and

the researcher must be willing to accept the outcome

even if it disprove their thesis and or mutual constructs.

3.3 SOURCES OF DATA

THE PRIMARY DATA: This is include securing

information simply by observation of some revenue

xl
collectors at work, personal interviews or mailed

questionnaires.

These data are regarded as raw because others have

not subjected them to any interpretation and analysis.

This is the area where the research work was mostly

challenged with very poor level of co-operation form the

local government officers who were the custodians of the

much need records.

INTERVIEWS: series of interview with sample citizen like

small industrialists, petty traders and Okada/motor

transport were held. The interview with local government

employers were both means of getting the accurate and

detailed information required but the officials were un-

co-operation sheding the information.

SECONDARY DATA: The secondary sources is contained

information that others have treated and recorded on the

xli
subjected matter. This includes, books, magazines,

periodical and reports other methods involved the use of

literature review.

A critical reading of the existing literature on

revenue generation in local government also assisted in

arriving of a just conclusion as well as making

appropriate recommendation for improvement.

Data analysis is the process of refining the raw data

earlier on called so as to make directly relevant to the

problem of hand the research made use of simple

percentage and dimensional table to analysis the data

called for the research work.

Data analysis is the process of analyzing all the

information and evaluating the relevant information that

can be helpful in better decision making (sivian & skilling

200%). Data analysis is an important part of your

xlii
dissertation this post would be useful while you do your

dissertation data analysis helps in deriving the

conclusion out of the gathered information.

3.5 THE RESEARCH PROBLEM

Research forms a cycle, it starts with a problem and

ends with a solution to the problem the problem

statement is therefore the aims which the whole research

revolves around because it explains in short the aim of

the research.

(1) WHAT IS A RESEARCH PROBLEMS

A research problems is the situation that courses

the research to feel apprehensive confused and will at the

demarcation of a problem are within a certain concept

involving the WHO or WHAT, THE WHERE THE WHEN

and the WHY of the problem situation.

xliii
 They are many problems situation that may give

rise to research these source usually contribute to

problem identification own experience or the experience

of others ay be a source of problems supply. A second

source could be scientific literature you may reads about

certain findings and notice that a certain field was not

covered. This could lead to a research problem. Theories

could be third source short coming in theories could be

researched.

Research can thus be aimed at clarifying or

substantiating and existing theory at clarifying

contradictory findings at correcting a family methodology

at correcting the inadequate or unsuitable use of

statistical techniques at reconciling conflicting opinion or

at solving existing practical problems.

2. IDENTIFICATION OF THE PROBLEM

xliv
 The prospective research should think on what

cause the need to do the research (problem

identification). The question that he/she should ask is:

pre there questions about this problem to which answers

have not been found up to the present.

Research originates from needs that arise. A clear

destination between the problem and the purpose should

be made. The problem is the aspect the researcher

worries about think about want to find a solution for the

purpose is to solve the problem.

It finds answer to the question(s) if there is no clear

problems formulation the purpose and methods are

meaningless.

Keep the following in mind:

- Outline the general context of the problem are a

xlv
- Highlight key theories, concepts and ideal current in

this area

- What appear to be some of the underlying assumption

of this area.

- Why are these issues identified important

- What needs to be solved?

- Read round the area (subject) to get to know the

background and identify unanswered question or

controversies and or to identify the most significant issue

for further explanation.

The research problem should lead to analytical

thinking on the part of the research with the aim of

possible concluding solutions to the stated problem.

Research problem can be stated in the form of

either question or statement.

xlvi
(1) the research problems should always be form collated

grammatically correct and as completely as possible you

should bear in mind the wording (expressions) you use

avoid meaningless words. There should be no doubt in

the mind of the reader what your attentions are.

(2) Demarcating the research filed into sub problems is of

the almost importance.

(3) Sub problem(s)

Sub problems are problem related to the main

problem identification sub problems flow from the main

problem and make up the main problem it is the means

to reach the goal in a manageable way and contribute to

solving the problem.

(4) Statement of the problem: the statement of the

problem involves the demarcation and formulation of the

xlvii
problem i.e. the WHO/WHAT, WHERE, WHEN and WHY

it usually includes the statement of the hypothesis.

xlviii
 CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

Just like much other local government in the state,

Oke-Ero local government council is over whelmed

dependent on the suppliers of allocation and grant

receivable from both the federal and state government for

it operations. This ought not to be so.

A local government ought to be truly local

government ought to be self – fulfilling.

4.2 BRIEF HISTORY OF THE CASE STUDY

The same Abacha administration which

restructured the country into thirty six (36) state created

OKE – ERO local government on fourth December the

year 1996. Dr. O.A also was the first sole administrator

of the local government that year the local government is

xlix
located as the south eastern part of kwara state. It was

covered out of old EKITI local government which had

earlier been covered out of Irepodun local government in

the year 1991, Babangida administration restructured

the country into thirty (30) states.

POPULAITON

According to 1991 census figure OKE – ERO local

government area has 18,863 males 19432 females and a

total of 38,395

TRIBLE

Ethnically the indigenes Oke – Ero people Yoruba’s

who can trace their origin back to Ile – ife and their

dialect is called Ekiti dialect

4.3 ANALYSIS OF DATA

l
 The table above indicate clear the external of

financing dependence of local governments (the federal

government)

From the table its obvious that the financial aids

fluctuated. These uncertainty and irregularity

characteristic of grant –in- aids and/r statutory

allocations and the diverse impact which particularly the

grants – in aids have on local government over whelming

reliance on central finances for it development activities.

The critical study of table three shows that lesser

external revenue was coming to Oke – Ero local council

during the military Ero (1996 – 1998) then what was

obtainable during the civilian third republic regime. No

matter how one views, it democratic government is better

and favours the local government development activities

then the military government.

li
 The gradual rise in the external income from (1996 -

2000) was as a result of both increase in the price of

crude oil and the volume product per – date. However

unprecedented dramatic fall in the year 200 / 2001 was

a result of the terrorist attack on Washington D.C in the

year 2001 which affected the sale of oil product world

wide. Nigeria been a mono-product country (the oil was

bodily affected which in turn reflected on the local

council external income.

The conclusion of the view is that Oke - Ero local

government for it to survive as a viable local council has

no any option than for it to intensify, improve .

INTERNAL REVENUE REALIZATION AND

CLASSFICATION ON BY SOURCE

Revenue Head code

1001 Local taxes (Jangali)

lii
1002 Tenement rate (industrial and residential

building )
1003 Local licenses & fines/ radio, trade permit

deverts venturing
1004 Earning from commercial undertaking

(markets motor parks shopping centre etc.

1005 Rents on government properties (halls staff

quarters etc)
1006 1006
Interest payment and dividends (derived

from fixed deposits lodge )

1007 Re – imbursements (revenue in respect of

loan deviance to staff etc)

1008 Miscellaneous
EXTERNAL SOURCES

a. Grant statutory allocation from federal government

to each local government of the nation.

b. Ten percent to the internal revenue realized in a

local government area by the state will go back to the

local government purse.

liii
c. Bank loan and overdrafts

d. Contributions from other local governments

4.4 DUTIES AND RESPONSIBILITIES OF REVENUE

COLLOCUTORS

It is important to note that the success of any local

governments effort as regard tax collection depends on

the effectiveness and personal integrity of its collectors.

The duties of revenue collectors among other things are

1. Preparation of nominal roll of the entire eligible tax

payer in the locality.

2. The prompt collection of the appropriate tax through

the activities support of the district village and ward

heads of the collection area.

3. Insurance of tax receipt to the payers and payment

of the entire amount collected to the account of the local

government bank or direct payment to the local

liv
government. To the within the laid down rules of the local

government.

4. report all cases of defaulters to the local government

authority for necessary action

5. reconciliation of accounts with the local government

treasurer after the completion of collection of the tax in

accordance with FMM 59 to 67 (financial memorandum

59 – 67)

6. keeping of such books of account and records

prescribed by financial memorandum and treasurer as

are the needed to ensure that all revenue and other

money due to the local government and for which he is

responsible are in full

7. in case of licenses; issue immediately on payment

receipt or license in the prescribed form for all payments

made to him.
lv
8. record in a revenue collector’s cash book, details of all

receipt of revenue and payment of such revenue

collection to the treasury or bank

9. pending the payment to the treasury or bank, save

guard all revenue collected by placing it in the save or

cash - bank provided by the local government

10. Keeps all revenue earning books of account under

lock and key when not in use.

11. Present all revenue earning books, account books

and cash only to the person responsible for checking the

accounts.

12. submit the used and unused revenue earning book

license books and relevant documents to the treasury at

least once a month or at lesser intervals as may be

prescribed, when their or not there have been any

collections or payment to the treasury.

lvi
13. Return all exhausted revenue earning books to the

official from whom they were received.

4.5 SOURCES OF REVENUE TO OKE – ERO LOCAL

GOVERNMENT (INTERNAL SOURCES)

COMMUNITY TAX OR DEVELOPMENT TAX

This is tax levied by the local government per head

of an adult who has attained the age of 18 years. Every

made adult living or residing within the jurisdiction of

the local government and who has attained the age of

18year and who is not above 65 years 15 compulsory

levied.

This is done in other to raise certain percentage of the

local government revenue needed four the provision of its

services every year.

Continuation of 4.8

lvii
a. (STLGA). STGLA was a good aim instrument but

exploited by the state governments to divert local

government entitlement from federal government to their

own use.

In 1989 STLGA was abrogated and federal

allocation to local government was raise to 20%. That

was under Babangida but Abacha come and increased it

to25% so that 5% of it could be given to Obas. This was

the position in place with minor amendments when Oke

– ero local government was created in the year 1996.

1999 civilian regime come on board and things

changed. The thirty – six state governors challenged the

direct allocation of local government share of federal

allocation from federal account and they won. Thus, the

operation of local government joint account resumed

again. The result was for the state government to go back

lviii
to what they had for sworn which in – term gave birth to

fictitious “zero allocation syndromes” and other

consequences.

b. STATE GOVERNMENT GRANT

The state government is required by law to

contribute 10% of its internal generated revenue of the

local governments. This is 10% of internal revenue

realized within the jurisdiction of the sharing local

government. This will therefore go back to the local

government’s purse.

c. LOAN FROM BANK AND OVERDDRAFTS.

Another major unfavourable source of revenue is

loan or overdrafts which are often taken from the

commercial banks and or some other open market

financial institutions for their capital projects and other

lix
specific purpose. The local governments usually pay

highly charged interest rate to such banks of financial

institutions on the loans received. Such source of

revenue is not good enough of welfare oriented public

institutions

d. SPECIAL GRANTS

Another external source of money worth mentioning

are money that come from the highly little of

governments inform of emergency grants for disaster,

special grant equalization grant etc. these grants are

made to assist local government to maintain standards in

their provision of services and also for any loss incurred

as a result of any government policy or national hazards.

e. CONTRIBUTIONS FROM OTHER LOCAL

GOVERNMENTS

lx
 The local government may as well receive special

donation or contributions from other local government

within the and from individual philanthropies during any

official launching that may be organized from time to

time. This can also come inform of aid to the local

government towards the provision of a particular

infrastructure facilitate or a community project.

The method of collection is that every year the local

government and the tradition council with the approval

of the state governor determine how much to be levied

upon every adult male citizen of community in

accordance with the local tradition.

The income tax law of the northern Nigeria 1963

and as amended by kwara state government that 5% of

the total collection for the year be retrain by the local

government for it local service while the balance was paid

lxi
to the state government as it own share, was council in

1985 when the kwara state government asked local

government to retained what are collected at there are a

for the execution of task of development by the local

government

TENEMENT RATE

Tenement rate seem to be problematic issues in Oke

– ero area people are bitter about the imposition and the

collection of the rate. Professional values that can make

accurate assessment of properties are just not available.

Thus many defaulters, making due with official, the local

government according to the law of the land remains 4%

of the sum of tenement rate collected and remit the

balance of 60% of the state government.

LOCAL LICENCE FEES

lxii
These taxes are form of fees collected on certain business

like local gin, rearing of dog and dam gun license. This

type of tax is paid once in a year.

SLAUGHTER SLAB

The most importance slaughter slab is at ILOFO the local

government fixes how much should be levied on every

cow sheep or goat slaughter in the slab, the collection is

done on daily basis.

MARKET STALLS AND HAWKER IN THE

MARKET

Oke –ero is not an industrious area, neither is it

commercial for this reason the market in Oke – ero

council area are small ones and they hold at every five

days the biggest among them all is ILLOFA ODO OWA

central market where the local council provided open

stores. The market stores feeds are collected from market

lxiii
man and woman who make use of the store while every

other person who well in the open pay the hawker fees of

10.00 each at every market day.

RESTURANT HOTEL AND BEER PALOURS

Hotel bar beers parlous canteen and restaurant and

subjected of annual fees which are change according to

the standard of the establishment which is yielding good

to the local government.

BIRTH AND DEATH REGISTRATION FEES

New born babies are registered at medical and

health department of the council with registration fees of

= N = 1000.sss

Like wise death registration is done in the same

department. However a few people know the importance

of registering their death, the better way of improving the

situation is to transfer the job of registering the dead to

lxiv
community leader ward leader and perhaps the

environment sanitation super intending to do; this is

because of their proximity of the people and their early

awareness when people die.

CITIZENSHIP FEES

Citizenship fees are the money paid in other to

obtain form for the processing of certificated statement of

origin. It cost 150.00 people and renewal attracts the

same amount of money 150.00 per head for the renewal

of the certificate.

MISCHELLANCEOUS SOURCES

Oke –ero government realized over 30% of its total

internally generated revenue from the miscellaneous

sources which include block making industries, grinding

lxv
the machines saw mill, mechanic panel beater, spay

pointing ,vulcanizing barber, and hair dressing tailoring

and fashion making

4.6 EXTENRAL SOURCES

FEDERAL GOVERNMENT STATIONARY

According to decree no 36 of 31 st December 1984 named

the allocation of revenue federal account but amended to

take effect no 22nd January 1985 provided that 10% of

the amount standing to the credit of the federation

account shall be distributed to the local government of

the federation, but the allocation were to be paid via state

local government joint account.

4.7 PROBLEMS OF REVENUE GENERATION IN OKE –

ERO

Revenue generation in Oke – ero local government,

like any other young typically rural council. Is fraught

lxvi
with numerous problems, which are complex in nature.

Some of such problems are:

LACK OF GOOD LEADERSHIP AND ORGANIZATION

Most of the problems of revenue generation that

affect Oke – ero local government council could beside to

have stemmed from the age – long saying of a Greek

philosopher secretes.

Nobody practice a trade or a professional successful

which he has not even the minute’s knowledge but the

tragedy of governance is that every body be lives he can

do it and yet it is the most difficult of all” (omoniyi 1996 :

48)

Oke – ero local government has never been lucky to

have a truly knowledgeable, patriotic, police leads hip

since its inception in 1996, management of human,

institutional and fiscal resources for robust revenue

lxvii
generation and fruitions of organization put in place.

Therefore lack of the essential good leadership, the

rightful organization and management has over been the

bane of revenue generation in the local council.

lxviii
ILLETRACY AND IGNORANCE

A good number of citizens are illiterate and ignorant

of the importance of revenue and its payments as at

when due. The fact is the most citizens are also politically

illiterate including those half backed so called entitles

and politicians.

DISHONESTY

Some collectors could be un – trustworthy and

dishonest. They pinch money out of their collections and

they manipulate records in order to reduce the actual

yield.

STAFFING

There are no adequately qualified staffs to handle

those sensitive areas of revenue until successful. For

instance, lacks of the tax payer accurately make the

council loose substantial amount of its yield annual

lxix
lxx
 REFERENCE

1. OLADOSU S.A KADUNA essay in local government

(1980 : 54)

2. IBID 55

3. OLUBUNMI FAYEMI principle of local government

lxxi
 CHAPTER FIVE

5.0 SUMMARY, CONCLUSION, AND

RECOMMENDATION

5.1 SUMMARY.

The topic of this research work is total government

administration and problem of revenue generating and

Oke – ero local government council has been chosen for

research as a case study.

Therefore during the case of study, the following

fact discovered that there is improper or lack of grass

root orientation civil education and if a local government

is to discharge its functions well, it must have a

sufficient financial administrative base.

If local units are too weak or small in their financial

resources they will be irresponsive to demand and this

incapable of discharging a wide range of proudly

lxxii
important function which concern social – economic

development, health and vitality of the general well being

of the people in the area of their jurisdiction.

The fact must be recognized that it takes knowledge

understandings and contribution from the citizens to

makes a local government’s treachery rich. It is a

fundamental laudable objective to have every citizens of

the council area knowledgeable, political literature and

participative in affairs of their local government.

To this end hoping that a local orientation unit of

education department be eveated. The council should go

out with fun strength for civil education teach all citizen

about all that maters and all what they ought to know

about their local government inculcate in the people love

for the council make the people understand that the local

government is every body inheritance even an enviable

lxxiii
heritage that require every body’s patriotic support and

contributions to make viable.

Also, these must also part in to consideration internally

and externally generated revenue. If a local government

must develop and grow, it is imperative for founding

through internal revenue generation one level of

government is the extent of its financial independence

and its ability to control effectively its financial resource.

Consequent to the view I think, two broad roles can

be prescribed for the council to aspire to financial self

sufficiently. They two roles are strategic roles and tactical

roles.

1. Under the strategic roles, are the councils are the

think tank for the community their major role is to

generate ideals that will boost the revenue of the council

without having undue strain on the people. They should

lxxiv
be able to bring idea that can cause expansion of revenue

bases that are viable, profitable, economical and simple

to operate if such ideas become mature and approved by

the council, the council, member must take a step fun

their to ensure proper implementation and coordination.

2. The tactial roles delve on hour to corrupt and

malpractice during and after collection of revenue one

7 the major problem facing heal expense for

example:- it is noted that local council spend more

money collecting and records manipulating to reduce

the actual yield.

These are just a few of corrupts, problems and

malpractice associated with revenue collection in the

council.

While the external revenue is the solution to the

perennial financial crisis faced by local government and

lxxv
the panacea to centre government bluffs is the

establishment credit centre institution, a central

financial institution grated and supported by a levels of

governments for the local government. Established

it can Christian community development fund, local

government, local government bank, of local government

and municipalities or ever name. it is not name given to

it that matter what most is the advantage of the

institution.

5.2 CONCLUSION

A government which lacks knowledge of how much

money at its sources is anything but irresponsible

government. So also there is no state which pays only up

service to the development of her rural area the welfare of

the masses who are the bevellers can develop and

progress. We must develop from below. That is the sure

lxxvi
strategy because a nation development and grow from

below. That is nation building.

If adequate funds are to be made available for

capital development is the country side, if the serious

difficulties and inconveniencies experienced now at the

moment by local government in financing their capital

development programmes and in providing satisfactory

essential social amenities and basic infrastructural

facilities are to be reduced, to the bearest minimum if not

totally obviated, and if erratic and discordant

development which is immoral to the welfare of the local

inhabitants in particular and to the state and national

economy of a local credit institution is a categorical

imperative

5.3 RECOMMENDATIONS
lxxvii
 If a local body is to discharge its function well, it

must have a sufficiency financial and administrative

base.

If local government is too low in their financial

resources that is resource that will boost the area socially

and economically, and especially interim of providing

essential service and personal management should make

sure that there should be strategy and even tactics in the

way at employing people into different department in

order to avoid incompetent employee and

mismanagement.

Oke – ero locality is endowed with so many tourist

potentials and very entitles fadama land that are yet to

be resourcefully exploited and not even only Oke – ero

local government but also in the remaining local to be

resourcefully exploited and not even only Oke – ero place

lxxviii
like fro Omola nature fan at government in the federation

that Poss-idofin – Igbara , and Imole – Boja, a natural

rock shelter at Odo –owa if developed, win be come

beautiful edifies of attraction to tourists who will bring

their money for the growth of the council area.

So also, were are have are there area very many

Fadama lands such as Odo – atan, Igbira, Kakola, and

Egbere marsh at Odo – owa, idofun – Odo ashe main

land, Agbara swamp at Egosi, Iyemo – Wo Ajure Fadama

to mention but few. These Swamph lands can be

transformed hate where yielding dry – season farms and

gardens where out unemployed youth can be fully

engaged.

All what it demand is to build earth dams in these

place, provides water pumps and implement far irrigation

farming and surely money will ron in.

lxxix
 If the federal government could establish the

suggested local government fund and if it is entranced in

the constitution.

Good inter – governmental lobby, coordinal human

relation good leadership and political tactics are the local

government’s share of the internally

Generated revenue within the state or any other state

government grant to the local government.

lxxx
 REFERENCES

1. Certificate of competence in Local government

{Omoruji O – 1990. 50}

2. kaduna essays in local government {oladosu S.A

1980. 84}

3. public financial in Nigeria {Aliu A.O 1988. 42}

4. Kaduna essays in Local government (Oladosu S.A

1980.86,88)

lxxxi
 BIBLOGRAPHY

ADEBAYO ADEDEJI {1979} local government

Finance in Nigeria

University of ile ife

essay on planning and

budgeting system in

Nigeria

AREMU M.A {1998} Bender publishers company idi – Ape

Ilorin

Ojo . OO {1982} Advance level economics for west

Africa onibonoye press

and books industries

Nigeria limited.

lxxxii
AWOLOLAF. S.O {1997} public financial management

students company on rich –

land

publishers take Ilorin.

OLADOSU S.A KADUNA {1981} Kaduna essays in genle

press LTD.

OGUNTOYE M.K {2001} Local government Revenue

problem Unilorin –

designed extraction

unpublished.

BAMIDELE J.K An over view of public

administration

taxation.

OLUBUNMI F principle of local government

accounting pg. 24 .

lxxxiii
OMORUYI O. Certificate of competence in local

government

financial memoranda for

use in local government

treasures government printers

Ilorin.

Federal republic of Nigeria guidance for local government

reform government

printers Kaduna 1976.

Kwara state Nigeria gaze the extra ordinary No 33 volume

4o. Government printers

Ilorin.

lxxxiv