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ASSESSMENT OF REVENUE GENERATION AND SERVICE DELIVERY

ABSTRACT

Every local government in Nigeria desires quality service delivery as it is pertinent to the sustainability of grassroots development. The fundamental factor in achieving quality services, are adequate and reliable of the revenue sources as well as quality human resources that will serve as instrument for formulation and implementation of local government financial resources. This study assessed revenue generation and service delivery in Nigeria, a study of Abuja Municipal and Abaji Area Councils of Federal Capital Territory from 2008 -2013; arising as a result of low service delivery in Abaji specifically in health care and environmental sanitation services. The objective of the study is to make comparative assessment of actual revenue generated by the two area councils and how the revenue sources have affected service delivery. For methodology of the study, questionnaires were administered to sample beneficiaries; oral interviews for selected Heads of Department (Account, Health and Sanitation) and non-participative observation were used to collect primary data. The secondary data were collected through published academic journals, council‟s document (quantitative data), published and unpublished masters thesis. However, the study found that Abuja Municipal and Abaji area councils have disparity in revenue sources, qualitative and quantitative service delivery as a result of level and access to fund generation in Abuja Municipal. Consequently, the study recommended among others that; in achieving level of funding for quality service delivery in Abaji area council as expected by the beneficiaries, the Federal Capital Territory Administration (FCTA) should increase the statutory allocation of Abaji area council, to enable the council improve on its socio-economic service delivery for encouraging taxpayer and attract other investors for commercial purposes. This will also serve as an avenue of boosting the IGR and increase quality and quantity service delivery in Abaji area council of Federal capital Territory.

CHAPTER ONE

INTRODUCTION

1.1  General Background to the Study

In 1954, Nigeria adopted the Federal System of Government, which essentially shared the responsibility for service delivery among the three levels of government in an intergovernmental public arrangement. Basic government services such as agriculture support and irrigation, rural roads, health service, sanitary activities and primary education among others, were placed in the hands of lower level government, which then enables the community to be participative members of the society. The ability or capacity of local government to deliver sustainable public services depend on the level to which authority, functions, and financial resources are transferred or given to them vis a vis the scope and weight of their responsibilities. This is referred to as decentralization of authority for public services. The process of decentralizing authority, involves the process of deconcentration and devolution of services.

“Decentralization” is the transfer of authority and responsibility for public services, from the central government to intermediate and local governments or quasi-independent government organizations. The process of decentralization involves, within an appropriate legal framework of political, administrative and fiscal decentralization. Besides, the three components (political, administrative and fiscal decentralization) vary from unitary system of government to federal system of government. 

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