Local government is faced with varieties of difficulties to source adequate fund from federal government, state government and the internally generated revenue, such problems are cogwheel to the smooth running of local government administration. Revenue generation in Nigeria local governments is principally derived from TAX. Recently the revenue that accrues to local government is derived from two broad sources, viz: the external sources and the internal sources. The external sources of fund generation are as follows:
Statutory allocation from the Federal Account in accordance with section 160 (2) of the constitution of the Federal Republic of Nigeria (Promulgation) Decree 1989. 2)
Statutory allocation from each state government to the local governments in its areas of jurisdiction, 3)
Borrowing from state government and other financial institutions, 6)
Local Rates on markets and shops,
The internal sources of fund generation include the following: 1)
markets taxes and levies excluding any market where state finance is involved, 3)
Bicycle, truck canoe, wheelbarrow and cart fees, other than a mechanical propelled truck, Permits and fines charged by Customary Courts Local Government Business Investment, 4)
Tenement Rate Fees from schools established by the local governments Shops and kiosks rate, 5)
on and off Liquor Licence fees, Slaughter slab fees,
Marriage, birth and death registration fees.
Naming of street registration fee, excluding any street in the state capital, 8)
Right of occupancy fees on lands in the rural areas, excluding those collectable by the federal and state governments excluding the state capital, 9)
Cattle tax payable by cattle farmers only,
Merriment and road closure levy,
Religious places establishment permit fees.
Signboard and advertisement permit fees,
Radio and Television licence fees (other than radio and television...
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