International Journal of Research and Scientific Innovation (IJRSI) | Volume VI, Issue XII, December 2019 | ISSN 2321–2705

Sources and Uses of Local Government Funds in Nigeria: Evidence from Lere Local Government Area of Kaduna State

Haruna Abdulkarim, Mahmood Omeiza Adeiza

Department of Accounting, Faculty of Management Sciences, Usmanu Danfodiyo University, Sokoto, Nigeria

Abstract: – Local government is that level of government nearest to the people. It is said to be the cornerstone of the government system in any country. The federal government believes that it is only through an effective local government system, that human and material resources of the nation could be mobilized. The research work aimed at analyzing the sources and uses of local government funds in Nigeria using Lere local government area of Kaduna state as a case study, with emphasis on the internally generated revenue. The work is a survey design and secondary data obtained from records available to the local government finance department. The time series covers the period of five (5) years from 2010 – 2014. The data were analyzed using chi – square statistical tool, the current trends of ineffective tax administration and negligence on the part of revenue collectors is considered as a major problem for local government internally generated revenue. The research recommended that the local government should strive towards improving internally generated revenue and adopt enlightenment campaigns.

Key words: Internally Generated Revenue, Externally Generated Revenue

I. INTRODUCTION

One of the principal objectives of government everywhere in the world is to provide welfare to their citizens. Since Nigeria became politically independent in October 1st 1960 the need to embark on programs that would improve on quality of life of citizens has featured prominently in most of the policies it has pursued and the objectives it has assigned itself (Aderibigbe Stephen olomola, “economic development, post-independence in Nigeria” 2010). A very significant part of their policies and objectives is to have a rural focus, for the fact that majority of Nigerians lived in rural areas. The importance of local government institution emanates directly from this fact, because local government institution as the level of government closer to majority of Nigeria citizens are well placed to handle their problems, provide services for them and promote their welfare through the revenue they generated.