Public perception on the problem and prospect of internally generated revenue in Bayelsa state
CHAPTER ONE
PURPOSE OF THE STUDY
This study is to:
- Determine, the effort of Bayelsa state venue generation.
- Investigate, the various sources of revenue to local government.
- To explain the problem involved in each source of revenue
- Proffer possible solutions to the problems base on findings and factual analysis.
- Discover the proper and wrong practice in revenue generation
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
Source of local government finance implies the various means through which local governments in Nigeria generate financial resources to meet their financial obligations in the course of discharging their constitutional functions and duties. There are two major sources of local government finance in Nigeria, namely, internally generated revenue (which is revenue generated within the local government area of administration and it entails local tax or community tax, poll tax, or tenement rates, user fees and loans) and external source (Federal and State government monthly revenue allocation) however we would consider the former source as is our area of interest. Edogbanya and Ja’afaru (2013) state that there is a significant relationship between revenue generated and developmental effort of government, poor development of the areas, lack of basic social amenities to the rural people and lack of revenue to maintain the existing infrastructures, Fayemi (1991) revenue as all tools of income to government such as taxes, rates, fees, fines, duties, penalties, rents, dues, proceeds and other receipt of government to which the legislature has the power of appropriation. He further classified government revenue into two kinds – recurrent revenue and capital revenue. Olusola (2011) using ordinary least square found out that rates, fines, fees and licenses, rent sources of revenue are significant factors influencing internally generated revenue of local governments in Ogun State. It 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 (Ola and Tonwe, 2005). Oseni (2013) found that states getting additional revenue from the statutory allocations as derivation have lower proportions of internal generated revenue to their total revenues than some states. States where insurgency had been threatened with have the lowest IGR for the period. Dependence on the statutory allocations by the states does not necessarily translate to good dividends on democracy as internally generated revenues can be used to develop the states. Orewa and Adwoman (1992) posited that one of the factors responsible for Local Government poor revenue collection is the casual attitude of the revenue collectors and other treasury staff. They labour under the illusion that (no attar) whatever revenue they collect directly, the ‘father charismas’ of Federation Account will provide adequate funds for the payment of personal emoluments of the staff. This assumption is deceptive in that with poor revenue generation efforts, some council have found themselves unable to pay salary after deductions made by the State Governments. Adesoji and Chike (2013) shown that there is a positive relationship between internally generated revenue and infrastructural development. The study also revealed the various methods of generating internal revenue, which are the enforcement of tax personnel, contribution, and creating awareness to the public. The findings of the study however show that revenue administration agencies need to be reviewed to generate more revenue in the country. Vincent (2001) Studies on tax and public revenue mobilization in Nigeria have shown a high degree of centralization. Emenuga (1993) the allocation of revenue to the tiers of government has no adhere strictly to the expenditure requirements of each tier, thus the federal government has become a surplus-spending unit while other functions, he proposes the determination of a tier’s share through the aggregation of its basic expenditure needs. Agba, Stephen and Nnamani, (2014) identify the following sources, mass transit transportation, petrol filling stations; commercial farms; nursery schools and day-care that has the potential of generating revenue; establishment of endowment funds, etc. And recommends that Undue interference in the finances of local government councils by the federal and state governments should be checked. The situation where state government control local government councils and direct them how to spend their money through programs packaged and handed down to them should be stopped, Uhunmwuangho and Stanley (2013) the study revealed that local government in Nigeria are confronted with several problems which include corruption on the part of revenue collectors, lack of bye-laws on revenue tariff, farming out of revenue base on political patronage.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
It is important to ascertain that the objective of this study was to ascertain Public perception on the problem and prospect of internally generated revenue in Bayelsa state. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of Public perception on the problem and prospect of internally generated revenue in Bayelsa state
Summary
This study was on Public perception on the problem and prospect of internally generated revenue in Bayelsa state. Three objectives were raised which included: Determine, the effort of Bayelsa state venue generation, Investigate, the various sources of revenue to local government, to explain the problem involved in each source of revenue, proffer possible solutions to the problems base on findings and factual analysis and discover the proper and wrong practice in revenue generation. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Bayelsa State. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Internal revenue generation must be given top priority because of its important role play in the financial stand of any local government in Bayelsa State, Nigeria. Also effective and efficient internal revenue generation mechanism should be set in motion in the local government in order to ensure vibrant financial position of local government in state and avoid over dependent on statutory allocation from federal and state government and ensure efficient performance of local government
Recommendation
Based on the findings, the following were recommended
(1) there should be capacity building and personnel efficiency among revenue staffs, hence training and retraining of all cadre of revenue staffs will be a welcomed development
(2) the Local government should broaden the internal revenue sources
(3) there should be fundamental by-laws to deal with defaulter and protect revenue collectors and the existing by-laws should be up-date to nab defaulters, appropriate law should be promulgated in order to sanitize the revenue of the local government
(4) the local government should gives transportation, Housing allowance, award of excellence performance and lunch to revenue staff etc.
References
- Agba, M.S., Stephen O. & Nnamani, D. O.(2014) Local Government Finance in Nigeria: Challenges and Prognosis for Action in a Democratic
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- Adesoji, A. A. & Chike, F. O. (2013) The Effect of Internal Revenue Generation on Infrastructural Development. A study of Lagos State Internal Revenue Service, Journal of Educational and Social Research Vol. 3 (2) May 2013, ISSN 2239-978X, 419-436
- Emenuga, C. (1993), The Search for an Acceptable Revenue Allocation Formula: The National Question and Economic Development in Nigeria Ibadan. Nigerian Economic Society.
- Edogbanya, A & Ja’afaru G. S.(2013) Revenue Generation: It’s Impact on Government Developmental Effort (A Study of Selected Local Council in Kogi East Senatorial District), Global Journal of Management and Business Research Administration and Management, Volume 13 Issue 4 Online ISSN: 2249-4588 & Print ISSN: 0975-5853, 13-26
- Fayemi, O. A. (1991) Principle of Local Government Accounting: Chapter ten Publication Ltd, Yaba – Lagos.
- Olusola, O.O. (2011) Boosting Internally Generated Revenue of Local Governments in Ogun State, Nigeria (A Study of selected Local Governments in Ogun State), European Journal of Humanities and Social Sciences Vol. 8, No.1 (Special Issue) 2011, ISSN 2220-9225, 336-348
- Oseni, M. (2013) Internally Generated Revenue (IGR) in Nigeria: A Panacea for State Development, European Journal of Humanities and Social Sciences Vol. 21, No.1, ISSN 2220-9425; 1050-1066.
- Ola R.O. & Tonwe, D.A. (2005). Local Administration and Local Government in Nigeria, Lagos: Amfitop Nig Ltd.
