REVENUE GENERATION AND UTILIZATION OF LOCAL GOVERNMENT AREAS (A CASE STUDY OF UMUAHIA NORTH LOCAL GOVERNMENT)

ABSTRACT

Revenue generation is the nucleus and the path to modern development. Thus, the study was to assess the revenue generation and utilization of Local Government Areas. This is because local government as the third tier of government and the closest to the people especially in the rural areas needed revenue to provide basic social amenities to the people. But it is unfortunate to note that the local government management have not lived up to expectation especially to provide basic social amenities to the rural people. Thus, the objective of the research was to analyze the extent to which low revenue generation had affected the development of those areas. The researcher used primary and secondary methods of data collection to generate the needed data. The data obtained through questionnaire was presented in tables and expressed in simple percentages. The following were some of the findings which included slow development of the areas, lack of basic social amenities to the rural people and lack of revenue to maintain the existing infrastructures. The researcher therefore recommended that the local government should provide basic amenities of high quality. By doing so, the people’s interest would be geared towards giving their maximum support to the local government which would lead to the development of the rural area.      

CHAPTER ONE

1.1       BACKGROUND OF THE STUDY

Development is a sine qua non for modern civilization. In a crusade and struggle to carryout development at all nooks and crannies of the society, the local government as the tier of government that is nearest to the people is saddled with the responsibility of direct development of the people to a certain level.

Development 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 developmental projects. Like construction of accessible roads, building of public schools, health care centers, construction of bridges among others are soles generated from taxes, royalties, haulages, fines and grants from states, national and international governments.

Thus, the Local government cannot embark, execute and possibly carryout the maintenance of these projects and other responsibilities without adequate revenue generation.

This is the basic reason why development is skeletal at some Local Government councils in Nigeria. The issue of revenue generation is not exceptional to local government in Abia State. This has been one of the problems encountered by Umuahia North Local Government.

This however pronouncedly affected development negatively in local government councils. In this research project, the issue to address is how far revenue generation and utilization can affect the development of local government areas especially in Umuahia North Local Government.

1.2       STATEMENT OF THE PROBLEM

The Local Government Council take direct care of the grassroots people, that is the people in the rural areas. This group of people sometimes lack essential facilities and condition of modern civilization. They lack pipe bore water to drink, do not have electricity, accessible roads, poor educational infrastructure and facilities to mention but a few.

This is one of the major reasons of rural – urban migration of movement. This has made our cities to be congested and increase in many criminal activities. Based on the above and foregoing assertions, it is obivious that revenue generation and utilization of the rural area is a serious problem. This might be as a result of low revenue generation. If Nigeria is to achieve her desired goal of vision 2020 and possibly meet the millennium development goals (MDGS) target, the issue of revenue generation must be addressed squarely.

Hence the researcher is bothered to find out the impact of revenue generation and utilization on the lives of people at the rural area and how it has affected development in general especially in Umuahia North Local Government Area.

1.3       PURPOSE/OBJECTIVE OF THE STUDY

The broad objective of the research is to evaluate the revenue generation and utilization of Umuahia North in Abia State.

            The other objective of this study includes:

i.                    To determine the level of modern social amenities available in Umuahia North.

ii.                  To find out the level of poverty associated with the rural people as a result of slow development

iii.                To find out the degree of rural-urban migration.

iv.                To make useful suggestions to solve the problem of low revenue generation as development depends on revenue generated.  

1.4       RESEARCH QUESTIONS         

i.           What are the impacts of low revenue generation on the development of Umuahia North?

ii.          Are there adequate modern social amenities in Umuahia North?

iii.                Is the poverty level of the rural people high has a result of slow development?

iv.                  Has low revenue generation in Umuahia North contributed to rural-urban migration?

v.                  How can revenue generation in Umuahia North be improved?  

1.5       SIGNIFICANCE OF THE STUDY

The significance of any human endeavour is measured by its relevance to solving human problems. The findings of this study would help Umuahia North Local Government to identify the problems associated with revenue generation and its consequences on development.