THE IMPACT OF POOR REVENUE GENERATION ON THE DEVELOPEMENT OF LOCAL GOVERNMENT AREA (A CASE STUDY OF UMUAHIA NORTH LOCAL GOVERNMENT)

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY: Development is a sine qua non for modern civilization. In a crusade and struggle to carryout development at all nooks and crannies of the society, the local government as the tier of government that is nearest to the people is saddled with the responsibility of direct development of the people to a certain level. Development is highly associated with fund, much revenue is needed to plan, execute and maintain infrastructures and facilities at the local government level. The needed revenue generated for such developmental projects. Like construction of accessible roads, building of public schools, health care centers, construction of bridges among others are soles generated from taxes, royalties, haulages, fines and grants from states, national and international governments.

Thus, the Local government cannot embark, execute and possibly carryout the maintenance of these projects and other responsibilities without adequate revenue generation.

This is the basic reason why development is skeletal at some Local Government councils in Nigeria. The issue of poor revenue generation is not exceptional to local government in Abia State. This has been one of the problems encountered by Umuahia North Local Government.

This however pronouncedly affected development negatively in local government councils. In this research project, the issue to address is how far can this poor revenue generation affect development especially in Umuahia North Local Government.

1.2     STATEMENT OF THE PROBLEM

The Local Government Council take direct care of the grassroots people, that is the people in the rural areas. This group of people sometimes lack essential facilities and condition of modern civilization. They lack pipe bore water to drink, do not have electricity, accessible roads, poor educational infrastructure and facilities to mention but a few.

This is one of the major reasons of rural – urban migration of movement. This has made our cities to be congested and increase in many criminal activities. Based on the above and foregoing assertions, it is obvious that the impact of poor revenue generation on the development of the rural area is a serious problem. This might be as a result of poor revenue generation. If Nigeria is to achieve her desired goal of vision 2020 and possibly meet the millennium development goals (MDGS) target, the issue of revenue generation must be addressed squarely.

Hence the researcher is bothered to find out the impact of poor revenue generation on the lives of people at the rural area and how it has affected development in general especially in Umuahia North Local Government Area.

1.3     PURPOSE/OBJECTIVE OF THE STUDY

The broad objective of the research is to evaluate the impact created by poor revenue generation on the development of Umuahia North in Abia State.

          The other objective of this study includes:

1. To determine the level of modern social amenities available in Umuahia North.

2. To find out the level of poverty associated with the rural people as a result of poor development.

3. To find out the degree of rural-urban migration.

4. To make useful suggestions to solve the problem of poor revenue generation as development depends on revenue generated. 

1.3     RESEARCH QUESTIONS

1. What is the level of modern social amenities available in Umuahia North?

2. What is the level of poverty associated with the rural people as a result of poor development?

3. What is the degree of rural-urban migration?

4. What are suggestions to solve the problem of poor revenue generation?

1.5     SIGNIFICANCE OF THE STUDY

This research will look critically into the impact of poor revenue generation on the development of local government areas in Nigeria. Even though the government have tried several schemes to generate funds, the effort have not been effective enough to execute projects. This study will analyze how the local government can strategically and continuously work towards a better means of generating fund for projects handled by the local government. This study will also serve as a background knowledge for further research works.

1.6     SCOPE OF THE STUDY

The idea of the research work is to decipher if actually poor revenue generation can affect development in local governments. This research will cover only Umuahia North local governments of Abia state, methods and the citizens’ response to revenue generation for development in local government areas in Nigeria will be used.

1.7     LIMITATION OF THE STUDY

Finance for the general research work will be a challenge during the course of study. Correspondents also might not be able to complete or willing to submit the questionnaires given to them.

However, it is believed that these constraints will be worked on by making the best use of the available materials and spending more than the necessary time in the research work. Therefore, it is strongly believed that despite these constraint, its effect on this research report will be minimal, thus, making the objective and significance of the study achievable.

1.8     DEFINITION OF TERMS

Revenue: this is the income, especially when of an organization and of a substantial nature.

Development: this is the growth of something

Local government: this is an administrative body for a small geographic area, such as a city, town, county, or state.