Topic: REVENUE GENERATION AND UTILIZATION IN THE LOCAL GOVERNMENT SYSTEM: PROBLEM AND PROSPECTS (A CASE STUDY OF OWERRI MUNICIPAL)

Chapter One

INTRODUCTION

1.1 Background of the Study

Revenue has been considered as a significant issue in the economic development of any nation. It’s importance cannot be over emphasized, be it the federal, state or local government. It serves as a life wire of every business which helps the organization to attain its goals. Revenue is of great importance to national planning and development. The origin of revenue generation and utilization in the local government started with local government reform of (1976) constitution where local government as established to create impact in the generation of revenue for the development of people in the local government area. This (1976) constitution gave the rural people a sense of belonging in the allocation of “national cake,” since Nigeria constitution provides local government authorities with unique opportunities and challenges to achieve self generation of income for economic growth and development Akpan (1985: 43) Again, the “1985” Nigeria constitution equally provide that local government authorities should benefits from the federal state government revenue to have these supplemented with their self generation revenue. All the efforts are aimed at making local government viable and self reliant. These are a total of seven hundred and seventy four (774) local government councils inNigeriaincludingImoStatewhich has twenty seven (27) local government councils. These local government areas are trying to generation enough fund to sustain themselves financially in these covers, these are many hindrance on the way to their success ranging from instability and poor condition of the economy, poorly conflicted road for revenue collection, uncooperative attitude of payee, insufficient industrial units, inadequate supply of social amenities etc. these problems standing against revenue generation government including Owerri municipal as a case study. These problems have stimulated the researcher to move into a great mission through research in order in set up strategies to achieve these goals. Poor revenue generation will no doubt prevent the council from rendering good services to the public. The researcher work is therefore set to examine the prospect and problems encountered in revenue generation in Owerri municipal and proper solution.

1.2 Statement of Problem

It can be observed that revenue generation is an achieve that needs skilled and experienced head in the since that it deals with several dependent and intendment various such as time, energy and labour. Again due to problem of the limited research of the people to satisfy their living very very well; revenue generation becomes difficult. These problems includes insufficient industrial unit, poorly consisted road for revenue collection, micro- operative attitude of payee, inadequate

1.3 Aim and Objectives of the Study

Based on the above, the study is designed to outline the following. 1. To x-ray some of the problems militarily against revenue generation in Owerri municipal. 2. To see if increase in revenue generation will aid quality income distribution in Owerri municipal. 3. To find out if adequately generation revenue will promote economic growth and development of the area.

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