REVENUE GENERATION AND ITS UTILIZATION TO TRANSFORM THE GRASSROOTS AREA OF NIGERIA

REVENUE GENERATION AND ITS UTILIZATION TO TRANSFORM THE GRASSROOTS  AREA OF NIGERIA  (A CASE STUDY OF UYO LOCAL GOVERNMENT COUNCIL)

CHAPTER ONE

INTRODUCTION/BACKGROUND OF THE STUDY

1.0     INTRODUCTION

Every local jurisdiction has its unique economic social and physical characteristics and its historical tradition which are better understood by its people. Thus, the local government areas are created to provide the service which the federal and state governments cannot easily undertake due to their remoteness from the local communities (Tonwe, 2007). Therefore, the concept of local government is to bring governance closer to the people at the grass root, with the aim of caring for the socio-economic and development needs of local populace (Adedokun, 2013).

Over the years, it has been observed that massive rural urban migration and over-congest heating up lives in the cities. Others have contended that local governments are docile in terms of aggressive revenue generation or collection to augment allocation from the federation account which they get on monthly basis yet, others hinged local government abysmal revenue generation on dishonesty on the part of council revenue collectors, who, in most cases, misappropriate collection made on behalf of the council, (Ibhawaeghele 2012).

Local government revenue generation in Nigeria, particularly Uyo local government, have been characterized by bazaar mentality, poor accounting systems, unavailability of reliable data for planning, over politicalization, inadequate finance and poor revenue collection, greed, unnecessary government interference, lack of direction and corruption (Dockery 2012). The statutory allocation from the federation account because of poor management are said to be inadequate to cover the financial obligation of local government, especially Uyo local government in term of staff salaries social services and serving of debts.

Thus, the work is an attempt at revisiting the sources of Uyo local government councils within the preview of fiscal Federation Republic of Nigeria. Uyo local government as my study area became the capital of Akwa Ibom State on September 23, 1987. Following the creation of Akwa Ibom State, Uyo local government headquater is bounded by Aba, Itu, Uruan, Ibesikpo Asutan and Etinan. It population according to the 2006 Nigeria census is 309, 573.

1.1     STATEMENT OF THE PROBLEM

It is a well known fact that the speed of transformation that is taking place in Nigeria, particularly in Uyo, Akwa Ibom State cannot be over-emphasized and evidences recorded so far have proved that these transformation drive is sustainable to take human existence in Nigeria at large to the next level primarily those dwelling in the rural area.

The state is not laying behind the community of Nation in the much-talk-about infrastructural delivery but, what calls for a gender concern is where do government drive it fund and/or sources of finance in keeping place their transformation agendas. Working? Apart from that do Government, upon its transformation strive to utilize its revenue maximally to transform the grassroots well?  And are there an impediment constraints imposed upon its revenue generation.

These and many more shall be discussed know whether Akwa Ibom State is really moving toward or not and how they generate their revenue top used in the transforming grassroots.

1.3     OBJECTIVES OF THE STUDY

The main objectives of the study is to know the extent of revenue generation, how it has been used or utilized in transforming the grassroots area of Nigeria, particularly Uyo Local Government area of Akwa Ibom State being the case study.