Challenges of Revenue Generation in Asa Local Government Area of Kwara State, Nigeria: Implications for Community Development
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Social and Management Research Journal, UiTM, Malaysia
Abstract
The Asa local government area of Kwara State, Nigeria,
is largely challenged by dwindling revenue generation leading
to sustained budget deficits and a paucity of funds for sustainable
development of the area. This paper examined the income generation
capacity of the local government and its implications for community
development. The study used both primary and secondary data
research methodology, which was interpreted and analysed.
The findings from the study were that Asa local government
generates insufficient revenues from both internal and external sources
due to weak federal allocation and irregular remittance of its statutory
financial allocation from the state joint account. The capacity of
the local government to generate sufficient internal revenue is also
challenged by poor tax collection capacity and enforcement
policy and embezzlement of large chunks of internally generated
revenue by local government officials. The low revenue generation has
reduced the construction of feeder roads and community markets,
and reduced drug supplies to the local government dispensary. The study concluded that Asa local government lacks adequate capacity
to generate the required revenue for community development and
recommended better training for the revenue
collectors, improved political and financial
autonomy for local governments and proper utilisation of revenue
generated to improve community development in As a local government.