Problem Of Revenue Generation Strategy In Enugu State Local Government (a Case Study Of Udi Local Government Area In Enugu State)

The research project is on the law of revenue generation strategy in Enugu State local government system. The main source of local government fund is the 20percent statutory allocation from the consolidated revenue fund.  This fund is not enough for the local government to discharge its responsibilities to their people.  It therefore, become necessary for the local government to look for other means of generating fund internally to supplement the 20percetn federal allocation to them.  They still do not meet up with their social, economic and political responsilities to their area of governance for instance, salaries and wage are not paid to workers regularly.  This results in workers not being able to pay house rents, schools, fees for chair children and PHNC bills. Again, the roads in the local government are not maintained, there are pot holes everywhere, causing untold hardship to the motorists, unnecessary traffic hold up and as a result the workers report late to work. This study therefore, seeks to investigate into the factor / problems that limit revenue generation strategy in Enugu State local government system.  To achieve this, data for the research were collected mainly through the primary source of questionnaire, which were structured closed-ended questions specifically designed in the line with the research question. The questionnaire was distributed to 85 workers of the accounts, it treasury and persuaded departments of the local government.  Face to face interview with some staff from selected department in the local government and also the local government in the local government and also the research personnel observation were used to supplement the questionnaire.  The simple random sampling method was used to collect the data.

Data collected were analyzed using percentage analysis and several finding were made.  These includes:

1. That there was lack of effective planning and control of government financial resources.

2. That there is lack of investment foresight 

3. Mismanagement 

4. The employment and inexperienced personnel.

In view of these finding the research made some recommendations, which if fully implemented will reduce eliminate these limiting factors and encourage good increasing and progressive revenue earning in the local government.

The recommendations include:

1. Mounting enlightenment campaign to educate the citizens on their right and duties. 

2. A percentage of the amount realized will reinvested in a capital project.

3. Staff training and manpower development should be encouraged by organizing in services training and seminars.

4. Good and efficient management personnel should be provided for good governance.

5. The revenue collecting equipment.

6. The internal audit department should be established to install effective internal control system.

7. The federal government should also increase the statutory allocation of the local government.