Problems And Prospects Of Revenue Generation In Local Government Areas

The challenging conditions in various local government areas of Nigeria have prompted the researcher to delve into this specific topic. The aim of this study is to educate individuals, particularly students in financial studies, on the methods of revenue generation in local governments. It addresses the issues they face in revenue generation and explores potential solutions to these challenges.

Local governments are expected to utilize the funds they generate for income-generating projects such as utilities (like water supply and electricity), and infrastructure development such as market construction.

To generate funds, local governments often seek grants from the federal government for specific purposes. Additionally, the central government regulates the sources, extent, purpose, and duration of loans that local governments can undertake, emphasizing responsible borrowing practices.

Local governments may borrow funds to acquire equipment and undertake projects that exceed their immediate financial capacity. Furthermore, these authorities in Nigeria are tasked with maintaining essential public amenities like motor parks, roads, and markets.

This work is recommended for students at all levels of financial studies as a comprehensive guide to understanding how locally generated revenue can facilitate the execution of projects by local governments