Sources And Management Of Local Government Revenue In Nigeria [A Case Study Of Kwali Area Council, Fct, Abuja]

Sources And Management Of Local Government Revenue In Nigeria [A Case Study Of Kwali Area Council, Fct, Abuja]

Chapiter 1

Introduction

1.1 The Study’s Background

One of the six councils of the Federal Capital Territory is the Kwali Area Council. It is located on the Federal Territory’s South Eastern Fringe. The federal capital territory was created when the 1976 decree No. 6 was published. The federal government was given ownership and management rights to all the land located within the area by the decree. Decentralization efforts were made in an effort to promote successful development, creating seven local government units that were ultimately amalgamated into four (4) local government regions in 1987. Area councils later replaced the term local government.

As a result, Gwagwa Lada, Abaji, Kuje, and Municipal area councils were created. The number of area councils reached six (6) on October 1, 1996, with the creation of Kwali and Bwari area councils in the Federal Capital jurisdiction. The federal capital territory’s (FCT) Kwali Area Council, which was formed by dividing the Gwagwalada Area Council into two, contains nearly one-tenth of the FCT’s total population.

The total area of the Kwali Area Council’s land is roughly 1,700 to 4 kilometers square. The settlement layout is scattered, with native settlements concentrating primarily in Kwali town, Yebu Leba, Dangara, Ashara, Shehda, Dahi Dahi, Pari Yangoji, and other nearby areas.

Gbagyi, Ganagana, Basa, Hausa, Fulani, and other tribes are among the major ethnic groups. This study uses the Kwali Area council as a case study to evaluate the sources and management of revenue creation.

1.2 Description Of The Issue

It is impossible to overstate the significance of revenue production for any organization, including local government, as it enables the successful and efficient implementation of established policies and programs.

The pivot around which an organization’s policies and programs revolve might be thought of as revenue. In the case of the federal capital territory of Abuja, it has been the cornerstone of any government or area council in terms of the successful implementation of its policies and programs as well as the development of the rural areas. In fact, the difficulties with revenue generation have tended to make it harder for some local governments and area councils to achieve their goals and objectives. What role has money been playing in the operation of local government, specifically Kwali Area Council, is the obvious issue.

However, this study uses Kwali Area Council FCT Abuja as a case study to examine the sources and administration of revenue in local government in Nigeria.

1.3 Study’s Objectives

Given that there are many different sources of money, the study has a tendency to:

1. Research local government revenue management.

2. Research the main revenue streams that go to the local government.

3. Research the obstacles to LG’s efficient revenue management.

4. Provide some likely recommendations for enhancing the Local Government Area Council’s revenue production, which would improve the local government’s performance for the residents of the Local Government Area.

1.4 Importance Of The Research

This study is crucial for Nigerian Local Government Councils, who have long struggled with management and revenue source issues. The study will go a long way toward examining how to change the current trend of things in order to improve revenue generating. As our ideas are primarily cockshy to boost the councils revenue, it is believed that this will “clean the tears” of local government regarding how things could be normalized in the local government system.

1.5 Study’s Purpose

This investigation is limited to Kwali Area Council. Due to some limitations, it will not be possible for me to contact other area councils inside the Federal Capital Territory (FCT) and other nearby local governments to the federal capital. As a result, I have limited the focus of this study to Kwali Area Council, Federal Capital Territory, Abuja.

1.6 Restrictions Of The Research

I encountered a variety of challenges while conducting this research, including lack of funding, insufficient time, and resistance from the residents of Kwali Area Council.

Finance: In order for a research project to be effective, funding is required. The creation of this work cost a significant amount of money. The cash did not just appear.

Time: Because I also had to deal with my studies, which included lectures, assignments, and tests, this task had to be completed quickly. As a result, the time allotted for the project was less than it could have been.

Unwillingness: A significant issue was the staff’s level of unwillingness to respond to the questions that had been prepared for them. This is due to their fear of revealing a local government secret, such as telling the researcher how much money they receive from the federal government and how much they create on a monthly basis.

1.7 Term Definitions

Sources: This is one way the local council can raise money, including

taxes levied locally

Government funding

A variety of receipts

Management: In the area council, management entails dealing, controlling, coordinating, directing, and organizing people and resources to achieve a specific set of goals.

The pivot around which an organization’s policies and programs revolve is its revenue. Any government has relied on it as its foundation. It is either money that is accessible to an organization or money that the government receives from taxes.

Local government: The legally recognized form of local governance. According to Attah (2001), local government is the level of government that is closest to the people and has specific authority to manage the affairs of the citizens under its jurisdiction. The United Nations for Public Administration (UNPA) defines local government as a political subdivision of a country (or state in a federal system) that is established by law and has significant control over local affairs, including the authority to levy taxes or perform labor for predetermined purposes. Such an entity’s governing body is elected or otherwise chosen locally.