Problem of Internal Revenue Generation in the Local Government System in Nigeria.


This study attempts to investigate the problems of internal revenue generation in the local government system in Nigeria, using Aninri local government council of Enugu State as a case study.

In doing this, we were able to determine whether Paucity of trained and skilled revenue collectors constrain Aninri Local Government council from generating enough internal revenue and to investigate whether corruption among revenue collectors hinders Aninri Local Government council from generating enough internal revenue.

We also made use of descriptive survey method of data collection, in which questionnaire instrument was administered to the randomly selected staff of Aninri Local Government Council. We use simple percentage in analyzing our data.

We adopted Systems theory as our theoretical framework and we were able to arrive at the following findings; that lack of training opportunities for revenue collectors has been the major problem that hinder the council from generating enough internal revenue.

Incompetence among council officials contributed to low generation of internal revenue, and Corruption which existed among revenue collectors hinders Aninri Local Government from generating enough internal revenue.

Base on the findings the study recommend as follows: Regular training programmes should be provided for internal revenue collectors in order to minimize incompetence in the council and there should be checks and balances not only for the revenue collectors but the whole departments.

This is because power corrupts, and, absolute power corrupts absolutely, there should be constant monitoring of internal revenue collectors and its Operational Performance to reduce the problem of corruption.


Title Page……………i
Approval Page……..ii
Table of Contents…
List of tables …viii
List of Figures ………ix

CHAPTER ONE: Introduction

1.1. Background of the study…………..1
1.2. Statement of the Problem …….6
1.3. Objective of the Study ……..8
1.4. Significance of the study…8
1.5. Hypotheses ………..9


2.1. Literature Review..10
2.2.Theoretical Framework…..36
2.3. History and Organizational Structure of Aninri Local Government Council……………39


3.1. Method of Data Collection…..50
3.2. Research Design………52
3.3. Method of Data Analysis……..54
3.4. Logical Data Framework 56


4.1.Impact of Paucity of Trained and Skilled Revenue Collectors in Aninri Local Government Council on Internal Revenue Collection…….57
4.2. Paucity of Trained Internal Revenue Collectors in Aninri Local Government Council.57


5.1.Corruption among Revenue Collectors in Aninri Local Government Council and Internal Revenue Generation….64
5.2.Effects of Corruption among Revenue Collectors in Aninri Local Government Council..64


Summary …….72
Conclusion ……73


1.1 Background of the Study

Governments all over the world are the oldest organizational structures, and many people look up to them for specific functions which are expected to meet the desires and aspirations of the general public.

However, governments always try to perform some basic functions from their available resources. Such functions include provision of necessary and essential service to the general public.

In order to achieve these aims, government must use and control funds which are generated from different sources in the economy.

Osagie (1931) observed that the major source of funds available to all  tiers of government in the country is mostly from taxation.

He noted that  taxation which is the compulsory payment imposed by the government on individuals and companies is meant to generate funds to meet the financial obligation and commitments of the government.

It does not depend on revenue realized from taxation alone but sometimes borrow to urgment its financial obligations.

In the same view, Nwaka (1988) stated that effectiveness of government revenue realization through taxation and other source depends on intergovernmental relations and the caliber of staff employed in the revenue section of the government.


Achikanu, N. (2001) Local Government Administration in Nigeria. Enugu: Pan African Publishers.

Adebayo Adedeji and Rowland, L. (eds) (1972) Local Government finance in Nigeria – Ile Ife: University of Ife press.

Ademolekun, L. (1983) Politics and Administration in Nigeria; Lagos African Books Collective Limited.

Ademolekun & L. Rowland (2002). The new local government in Nigeria

(Problems and prospects for implementation)

Ademolekun, L, (2002) Public Administration in Africa. Lagos Spectrum Books Asika, N. (1990). Research methodology in the Behavioural science. Ikeja: Longman (Nigeria) Plc.

Dean, E. (1972). Plan Implementation in Nigeria (1962 – 1966) London: Oxford University press.

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