Sanin Baba & Co.

25/03/2021

Gwamnatin tarayya a jiya talata ta fara shirye-shiryen jinginar da wasu manyan titunan tarayya guda goma sha biyu a sassa daban-daban na kasar nan. Ministan ayyuka da gidaje Babatunde Raji Rashola …

13/02/2021

02/11/2020

We live in an age where judging others has become the norm and mocking people for their mistakes has become a huge pastime. While some of us might do it unintentionally, others might fall into this out of ignorance or even arrogance. But how did our Prophet correct someones mistakes? Read more of th...

12/10/2020

Over 1.5 million confirmed cases on the African continent - with more than 1.3 million recoveries & 38,000 deaths cumulatively.

View country figures & more with the WHO African Region COVID-19 Dashboard: https://arcg.is/XvuSX

02/10/2020

The last speech by our great leader His Excellency Dr. Jonathan Ebele Goodluck Azikiwe on Independence day.
Can you compare with the recent one?

07/08/2020

FOUR 4 PILLARS OF BANKING SECTOR
* Enhancing the quality of bank,
* enhancing financial stability,
* enabling healthy financial sector evaluation,
* ensuring the financial sector contributes to the real economy, were put together to chart a new course for the sector.

09/06/2020

Tsohon dogarin Abacha, Manjo Hamza Al-Mustapha ya ce Ubangiji kadai zai sakawa tsohon shugaban kasa, Janar Sani Abacha, bisa namijin kan yadda ya sauya Najeriya

24/12/2019

Problems of Revenue Generation in Local Government Administration in Nigeria 3



* SOURCES OF LOCAL GOVERNMNT REVENUE IN NIGERIA *

Had noted that the dearth of finance had always been one of the major handicaps that hinder local governments in the performance of their functions in the country. Interestingly, though the 1976 Local Government reform does not only streamline Local Government functions but also ―clearly stated the functions and provisions for ensuring adequate human and financial resources. The revenue that accrues to Local Governments in Nigeria.

The revenue generated is derived from two broad sources, namely:

a) External sources and

b) Internal sources

External Sources:

The external sources of Local Government revenue/finance include:

a. Statutory allocation from federation account in accordance with section 162(3) of the 1999 constitution of the Federal Republic of Nigeria.

b. Statutory allocation from State Government to the local governments in its area of jurisdiction.

c. Federal grants –in –aid.

d. State grants-in –aid

e. Borrowing from State Government and financial institutions.

f. Local government share of value added tax (VAT).

Internal Sources The internally government revenue of Local Government includes the following:

a) Local rates and commission paid to Local Government for assisting in the collection of some taxes or dues on behalf of the state government.

b) Market rates and levies excluding any market where state finance is involved.

c) Bicycle, truck, canoe, wheel-barrow and cart fees, other than mechanically propelled truck.

d) Permits and fines charged by customary courts;

e) Local Government business investment

f) Tenement rates, fees from schools established by the local government.

g) Shops and kiosk rates.

h) On and off liquor license fees.

i) Slaughter slab fees.

j) Marriage, birth and death registration fees and street in the state capital.

k) Naming of street registration fee, excluding any street in the state.

l) Right of occupancy fees on lands in the rural areas, excluding those collected by the federal and state governments. Excluding the state capital.

m) Cattle tax payable by cattle farmer only.

n) Merriment and road closure levy.

o) Religion places establishment permit fee.

p) Signboard and advertisement permit fees.

q) Vehicle radio license fees (to be imposed by the local government).

r) Radio and television license fees (other than radio and television transmitter)

s) Wrong packing charges.

t) Public convenience sewage and refuse disposal fees.

u) Customary burial permit fees.

v) Fees collected from amusement centre established and operated by the local authorities and that of tourist centre and tourist attraction.

w) Rents, fees on private institutions

x) Motor Park levies.

y) Domestic and license fees, etc.

Apart from the foregoing sources, other sources of revenue could be by donation from public spirited individuals or philanthropists, with a view to assisting the Local Government to carry out a particular project or programme. However, it should be noted that out of the major internal revenue sources statutorily allocated to Local governments, the combination of rates, local license, fees and fines, and earnings from commercial undertaking account for upwards of 75% of Local Government internally generate recurrent revenues. On the other hand, noted that statutory allocations from the federal and state government constitute the major source of revenue of local governments in the country. Having outlined the vital areas of revenue generation to local governments in Nigeria, there is needed to examine the problems of revenue generation in local administration.

, √√√√√√ To be continued √√√√

05/12/2019

Problems of Revenue Generation in Local Government Administration in Nigeria 2.

* Local Government and Socio-Economic Development:

In many countries, Nigeria included, the local government is widely acknowledged as a viable instrument for rural transformation and for the effective delivery of social economic services to the people.

the local government in Nigeria is a well-recognized third-tier of government. It is administration or government at the grass roots or local level. At this level, government is expected to be very close to the people, both in the villages, settlements and towns, and to impinge on the day-to-day life of the commonman. Furthermore, local government is expected to be actively involved in the overall national development objective of achieving a broad-based social and economic development and securing an optimum utilization of manpower. Local governments are strategically located to deliver on the functions spelt out for it for three main reasons:

 proximity to the people;

 greater responsiveness to the needs of the local populace; and

 simplicity of operation in that local government organizations are usually not complex. Although local government has existed in one form or the other in Nigeria for quite some time, it was after a number of reforms, particularly the 1976 reforms and the subsequent ones, that it acquired the respectable status it now enjoys today. One compelling reason for the reforms was the need to make local governments perform their economic development functions better. Some major developments in the local government system since the 1976 reforms are as follows:

(i) Unlike previously, local governments have now been assigned and guaranteed certain specific developmental roles in the 1979, 1989 and 1999 Constitutions of the Federal Republic of Nigeria.

(ii) In order to enable local governments perform their functions, a constitutional backing has been provided for them to receive a statutory proportion of funds in the Federation Account as well as the states who are to contribute a proportion of their internally generated revenue to local governments in their domain.

Accordingly, the revenue share of local governments in the Federation Account has progressively increased from 10 percent in the early 1980s to 15 percent in 1990. As at 2012, this proportion stood at 20 percent.

Currently, the revenue sharing formula from the

Federation Account is as follows: Table

1: Revenue Sharing Formula

(a) Federal Government = 50%

(b) State Government = 24%

(c) Local Government = 20%

(d) Special Funds = 6%

Total = 100%

The Valued Added Tax (VAT) is also currently distributed as follows:

(1) Federal Government = 15%

(2) State Government = 50%

(3) Local Government = 35%

Source : Federal Office of Statistics, Benin City.

To be continued.