IMPACT OF LOCAL GOVERNMENT REVENUE ON SERVICE DELIVERY IN KUDAN AND SABON GARI LOCAL

GOVERNMENT AREAS, KADUNA STATE

BY

Ibrahim UMAR
DEPARTMENT OF LOCAL GOVERNMENT AND DEVELOPMENT STUDIES FACULTY OF ADMINISTRATION
AHMADU BELLO UNIVERSITY, ZARIA-NIGERIA

NOVEMBER, 2015

IMPACT OF LOCAL GOVERNMENT REVENUE ON SERVICE DELIVERY IN KUDAN AND SABON GARI LOCAL
GOVERNMENT AREAS, KADUNA STATE
BY

Ibrahim UMAR MPA (LG)/ADMIN/01667/2008-09

A DISSERTATION SUBMITTED TO THE SCHOOL OF POSTGRADUATE STUDIES, AHMADU BELLO

UNIVERSITY,

ZARIA

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MPA (LG)

NOVEMBER, 2015

ii
DECLARATION

I declare that the work in this dissertation entitled ―Impact of Local

Government Revenue on Service Delivery in Kudan and Sabon Gari Local

Government Areas, Kaduna State‖ has been carried out by me in the

Department of Local Government and Development Studies. The

information derived from the literature has been duly acknowledged in the

text and a list of references provided. No part of this thesis was previously

presented for another degree or diploma at this or any other institution.

_______________________ ___________ __________ Ibrahim Umar Signature

Date

iii

CERTIFICATION

This dissertation entitled ―Impact of Local Government Revenue on

Service Delivery in Kudan and Sabon Gari Local Government Areas,

Kaduna State‖ meets the regulations governing the award of Master of

Public Administration (Local Government) of Ahmadu Bello University,

Zaria and is approved for its contribution to knowledge and literary

presentation.

Dr. Muhammad Kabir Isa ______________ ______________ ____________________

Chairman, Supervisory Committee Signature Date

Dr. Bashir Jumare ______________ ______________ ____________________

Member, Supervisory Committee Signature Date

Dr. Muhammad Kabir Isa _______________________ ______________ ______________

Head of Department Signature Date

Prof. Kabir Bala _________________________ ______________ ______________

Dean, School of Postgraduate Studies Signature Date
iv

DEDICATION

This dissertation is dedicated to my family.

ACKNOWLEDGEMENTS

Alhamdulillah! Alhamdulillah!! Alhamdulillah!!! All good praises are due

to ALLAH (SWT) who made the completion of this study a success, May

He increase His blessings on Prophet Muhammad (SAW), his family,

companions and those that follow his righteous path till the day of

resurrection (Ameen). My special gratitude goes to my supervisors,

Professor Halidu I. Abubakar, Dr. Bashir Jumare, Dr. Muhammad Kabir

Isa and Mr. Ejisun who out of their tight schedule sacrificed time to go

through my work, may Allah reward you all (Ameen).

My acknowledgement will not be complete without appreciating the great

assistance I received from Dr. Muhammad Kabir Isa (Head of

Department), Dr. Usman Abubakar, Prof. Adejo Odoh, all my lecturers in

the Department of Local Government and Development Studies.

My special gratitude goes to the following people: Alh. Yahaya Aminu

(Chief of Staff Kaduna State), Abubakar Lawal, Mal. Abdullahi Sani,

Yusuf I. Magaji Kudan, Kabir Musa Lemu, Kabir Ibrahim Idris, Dr. Lawal

Saleh, Alh. Hassan Junaidu, Ibrahim Alhassan, Alh. Bello Alhazawa, Mal.

Aliyu Muhammad, Alh. Adamu Yaro, Aliyu, Idris, Adamu A. Sani (LGT),

Nasiru Garba Ajiya Kudan, Hassan Habu, Mal. Aliyu (store keeper

Kudan), Kabir Balarabe, Ibrahim Tijjani, Ibrahim Kudan and Bashir

Aminu for their assistance, support and encouragement.

vi

ABSTRACT

This study is on the impact of local government revenue on service delivery. The study determined the
general level of revenue generation in the two Local Government Areas under study by examining the
two major sources (internal and external) of revenue available to local government in Nigeria. It also
examined the relationship between revenue generation and service delivery. The study used survey
research method where data was generated through both primary and secondary source. The primary
data was collected through the use of questionnaire in soliciting information from the respondents
about the management of revenue generated and services delivered. The secondary data was collected
through the two local government annual estimates, treasurer’s reports, etc. Pearson chi-square was
used for data analysis to show the relationship between effective management of local government
revenue and level of service delivery in the local governments. Pearson Correlation was also used to
measure the relationship between the amount of revenue generated and service delivery in the two
local governments. However, it was found that effective management of local government revenue
positively impacted on the efforts of local government in promoting development. And there is a
positive correlation between the amount of revenue generated and the level of services delivered. This
means that the ability of local governments to provide effective services to people depends on its ability
to generate revenue from its internal and external sources. This is achievable through proper collection
and remittance of revenue by revenue collectors and financial discipline in budgeting processes. In line
with the findings of the study it was recommended that more revenue sources should be identified and
adopted in order to increase and improve the revenue base of the local governments. Property and
tenement rate as potential sources of local government revenue should also be tapped fully to improve
the revenue base of the local governments.

vii

TABLE OF CONTENTS Title Page - - - - - - - - - - i

Declaration - - - - - - - - - - ii

Certification - - - - - - - - - - iii

Dedication - - - - - - - - - - iv

Acknowledgement - - - - - - - - - v

Abstract - - - - - - - - - - vii
Table of Contents - - - - - - - - - - viii

CHAPTER ONE

INTRODUCTION 1.1 Introduction - - - - - - - - - - 1 1.2 Statement of the Problem - - - - - - - - 3 1.3 Research

Questions - - - - - - - - 5

1.4 Objectives of the Study - - - - - - - 5

1.5 Hypotheses of the Study - - - - - - - 6 1.6 Significance of the Study - - - - - - - 6 1.7 Scope and
Limitation of the Study - - - - - - 7 1.8 Definition of Concepts - - - - - - - 8

CHAPTER TWO LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1 Introduction - - - - - - - - - 11 2.2 Conceptual Framework of Local Government - - - - 12

2.3 Service Delivery - - - - - - - - - 16

2.4 The Roles and Challenges of Local Government Towards Service Delivery in Nigeria - - - - - - - - 22

2.5 Local Government Revenue Sources and Service Delivery in Nigeria - 26

2.6 Theoretical Framework - - - - - - - 41

viii

CHAPTER THREE RESEARCH METHODOLOGY 3.1 Introduction - - - - - - - - - 44 3.2 Research Design - - - -

- - - - - 44 3.3 Population and Sample Size - - - - - - - - 44 3.4 Sampling Methods- - - - - - - - - 46 3.5
Instruments of Data Collection - - - - - - - 46 3.6 Administration of Questionnaire - - - - - -48

3.7 Method of Data Analysis - - - - - - - - 48

CHAPTER FOUR

HISTORICAL BACKGROUND AND DEVELOPMENT OF SABON GARI AND

KUDAN LOCAL GOVERNMENT AREAS

4.1 Historical Background and Development of Sabon Gari Local Government

Area of Kaduna State - - - - - - - - 50

4.2 Historical Background and Development of Kudan Local Government Area

of Kaduna State - - - - - - - - - 63

CHAPTER FIVE

DATA PRESENTATION AND ANALYSES 5.0 Introduction - - - - - - - - - - 74 5.1 Details of Revenue Sources of
Sabon Gari Local Government Area

Over The Years - - - - - - - - - 74

5.2 Revenue Allocation for Service Delivery - - - - - 73

5.3 Details of Revenue Soruces of Kudan Local Government Area

Over the years - - - - - - - - - 77

5.4 Revenue Generation and Service Delivery - - - - - 80

5.5 Test of Hypotheses - - - - - - - - - 114 5.6 Major Findings - - - - - - - - - 118

ix

CHAPTER SIX

SUMMARY, CONCLUSION AND RECOMMENDATIONS 6.0 Introduction - - - - - - - - - - 120 6.1 Summary - -

- - - - - - - 120 6.2 Conclusion - - - - - - - - - - 121 6.3 Recommendations - - - - - - - - - 122 References - - - - - -
- - - 124 Appendix I - - - - - - - - - 129 Appendix II - - - - - - - - - 135

Appendix III - - - - - - - - - 140

1

CHAPTERONE

INTRODUCTION

1.1 Introduction

Local government finance is one of the aspects of public finance. It deals with

the generation of revenue, expenditure and utilization of financial resources in order to

bring the impact of government closer to the people at the grassroots. Put differently,

finance is essential at enabling local governments transform the lives of the rural

dwellers through the provision of social services and rural infrastructures like the

construction and maintenance of rural roads, markets, schools, health centers, etc.

Finance is the heart of the major activities of government. Government units at

all levels-national, State and Local are daily engaged in the production and distribution

of public goods and services in areas such as agricultural extension, education,

healthcare, social welfare, security, all of which involve huge amounts of money. The

mobilization of the financial resources or revenue to meet the diverse welfare needs of

the people has in effect become an important responsibility which governmental

authorities have to shoulder. This responsibility not only includes the generation of

revenue but also its allocation among competing needs of the local governments. It is

within this context that we can appreciate the task of revenue collection at local

government level (Abubakar, 1999).

Generally speaking, revenue accruing to any tier of government may be

classified as recurrent or capital. While the former is generated on day-to-day basis

throughout the year, the latter arises once in a while and in a larger proportion. They are

also described as internal and external sources of revenue respectively. Barber (1978)

remarked that the principal sources of local government revenue are local rates, federal
government grants and trading receipts. The 1976 Local Government Reforms (in

Nigeria) recognized the fact that if meaningful local government is to be expected in

Nigeria, much larger financial resources are needed. The internal sources of revenue

comprise many major and miscellaneous items aggregated to provide the required fund

for financing the enormous functions ascribed to Local Governments as third tier of

Government, Orewa and Adewumi (1983) stated that one of the main reasons why a

local council exists is to collect various forms of revenues from its citizens and to use

these to provide social services in an efficient manner as possible. These sources are

summarized into the following revenue heads: Tenement rate/property rating, local

license, fines and fees, earnings from commercial undertakings and rent on property,

interest payment, and dividends and miscellaneous (Orewa and Adewumi,1983).

According to Abubakar (1999) Local Government units today are assigned a

wide ranging number of functions and of reaching responsibilities for which they are

statutorily empowered to raise revenue from local sources to supplement their

allocations from the Federation Account and other intra-governmental sources.

A development oriented local government system is therefore expected to be a

vehicle for the provision of goods and services, which are necessary prerequisites for

sustained development.

In the 1976 Local Government Reforms, the Federal Republic of Nigeria

articulated four basic objectives for establishing local government. These are:

i. To make appropriate services and development activities responsive to local

wishes and initiatives by developing or delegating such services to local

representatives bodies.

ii. To facilitate and bring the exercise of democratic self-employment close to the

local level of our society and to encourage initiative and leadership

potentials.

iii. To mobilize human and material resources through the involvement of members

of the public in their local government, and

iv. To provide a two-way channel of communication between local communities

(both state and federal) (Fajobi, 2010:3).

For local government to perform these enumerated functions, it has a history of

revenue allocation in Nigeria. Prior to 1979 constitution local governments were

given occasional grants for the funding of health and primary education.

Over the years, the percentage allocation of local government revenue to capital

expenditure which is meant for the provision of services is very low. Specifically,

40.20% in 2006 was allocated to capital expenditure, 17.38% in 2007, 17.35% in

2008, 34.0% in 2009 and 39.28 in 2010 (CBN, 2010). This means that over 50% of

the revenue received by Nigerian local government is allocated to recurrent

spending at the expense of service delivery.

The report of the CBN, (2012), shows that the statutory allocation to local

government accounts for 57.5%, in 2011 and 59.4% in 2012 of their total revenue.

This percentage is very high compared to the Internally Generated Revenue (IGR)

of 1.6% and 1.9% respectively in the same years (CBN, 2012).

1.2 Statement of the Problem

Nigeria operates a federal system of government where power is

constitutionally shared between three tiers of government. Local government was

created as a means of promoting development and bringing government closer to the

people.

Nigeria's experience in local government administration, whether in military

regimes or in democratic era has clearly shown that local governments are faced with
4

daunting challenges in their mandate to promote development and provide essential

services to the rural dwellers. Local government, which is statutorily established to be

the closest tier of government to the people, is not doing its bidding coupled with the

fact that resident population in the local government has no significant access to the

benefits of its existence. The failure of the local governments in the area of service

delivery has made the citizens to lose their trust in government as an institution. In

some areas, council officials are better known for the harassment of citizens than

service delivery (Ajibulu, 2011). It is common knowledge that local government has

the weakest capacity to initiate and manage rural development programme. Most of

the officials are performing their functions without the relevant qualification to

perform effectively. As a result, the available resources for accelerated and sustainable

rural development are inefficiently utilized for the purpose intended (Ocheni. et al.

2012:131).

In spite of the increase in total amount of funds available to Local Governments

from early 1990s to date, their economic and financial profile have been very poor,

relative to its development due perhaps to false declarations of statements of revenue

by revenue collector‘s and treasury staff, political instability and lack of socio-political

philosophy among others. Mope, (2015) argued that in nominal terms, the allocation

which stood at N597.2 billion in 2005 jumped to N1, 379 billion in 2008, reflecting a

marginal revenue increase of 130.9%. However, some challenges which served as

impediments to Local Governments‘ efforts to generate adequate revenue from various

sources. Many factors have been identified to be responsible for the inadequate internal

revenue effort. Chief amongst them are corruption and weak machinery for check and

balances in the generation of revenues. Preliminary survey has shown that the inability

of the local governments to provide adequate services to the people within their areas of
5

jurisdiction is attributed largely to inadequate revenues. The researcher was therefore

motivated to conduct research in order to investigate the impact of local government

revenue on service delivery in Kudan and Sabon Gari Local Government Areas.

1.3 Research Questions

The study seeks to answer the following research questions:

i) What is the level of revenue generation in Kudan and Sabon Gari Local

Government Areas?

ii) What is the relationship between revenue generation and service delivery in

Kudan and Sabon Gari Local Government Areas?

iii) To what extent does revenue affect service delivery in Kudan and Sabon Gari

Local Governments Areas?

iv) How effective is revenue management in Kudan and Sabon Gari Local

Government?

v) What are the challenges of revenue generation and service delivery in Sabon

Gari and Kudan Local Government Areas?

1.4 Objectives of the Study

i) To determine the general level of revenue generation in Kudan and Sabon Gari

Local Government Areas;

ii) To examine the relationship between revenue generation and service delivery in

Kudan and Sabon Gari Local Government Areas;

iii) To determine the extent to which revenue affects service delivery in Kudan and

Sabon Gari Local Government Areas;

6
iv) To examine the effectiveness of revenue management in Kudan Sabon Gari

Local Government.

v) To identify the challenges of revenue generation and service delivery in Sabon

Gari and Kudan Local Government Areas.

1.5 Hypotheses of the Study

Ho1: The amount of revenue generated by the local government has no

significant relationship with the level of service delivery in Kudan and Sabon

Gari Local Government Areas.

H02: Effective management of local government revenue does not affect the

performance of local government in service delivery.

1.6 Significance of the Study

Previous studies like that of Jumare, (2008) focused on statutory allocation to

local government and service delivery and Youbi (2008) associated the failure of

service delivery by local government functionaries with bad local politics. This study

focused on the two sources of local government revenue and service delivery.

The study provided the basis for developing various ways of improving revenue

generation in Sabon Gari and Kudan Local Governments Areas and in other local

governments‘ areas in Nigerian. With an improved revenue generation, Kudan and

Sabon Gari Local Governments will be able to meet the demands of the people and will

be able to perform their primary functions of provision of essential services more

efficiently. The study also revealed the extent to which an improved revenue generation

will impact on development generally. The study is an added contribution to the

existing knowledge on revenue and service delivery in Local Government and ways of

7
improving the two. The research will also help other researchers who may wish to carry

out research of similar nature.

1.7 Scope and Limitations of the Study

This dissertation focused on the study of local government revenue and service

delivery in Kudan and Sabon Gari Local Government Areas of Kaduna State. The

scope of the study is restricted to a period of seven (7) years i.e. (2007-2013).

Limitations of the Study

As with any other research, there were restrictions or constraints that the

researcher encountered. The limitations of this study include:

i. Financial constraint:

It is an established fact that every research work consumes a lot of money.

Therefore, the financial requirement for gathering data, typing of the project

subsequently and other related expenditure served as a major constraint to this research

work.

ii. Responses while gathering data

For some reasons best known to the officials of the Local Government, the

authorities were not willing to release some information which is relevant to this

research project, even after persuasion and being assured that the information sought

will only be used for academic purposes alone. This refusal to release some vital

information by the Local Government was as a major constraint to this research work.

1.8 Definition of Concepts

From our analysis of the statement of the problem and hypotheses stated above,

there are some key concepts that need to be conceptually defined for better

understanding. These concepts include: Local Government Finance, Financial

Management, Revenue Generation, IGR, Development, Service Delivery and Local

Government.

Impact: Impact in this study refers to the effect of revenue generated on service

delivery by local government. It also determined the extent to which local government

was able to deliver local services with resources at its disposal.

Local Government

Local Government is defined as Government at the local level exercised

through representative council established by law to exercise specific powers within

defined areas. These powers should give the council substantial control over local

affairs (including staffing) and institutional and financial powers to initiate and direct

the provision of services and to determine and implement projects so as to complement

the activities of the state, and Federal Government in their areas, and ensure, through

the active participation of the people and their traditional institutions, that local

initiative and response to local needs and conditions are maximized (Federal Republic

of Nigeria, 1976).

Service Delivery

According to this research, service delivery refers to all the goods and services

delivered by the local government in responses to the public needs in order to address

societal problems. The services here include provision of schools facilities like books

and chairs; hospital facilities like beds and drugs; agriculture, farm inputs and machines

like tractors, fertilizers and seeds.

Financial Management
Financial management is defined as the act of total management function

concerned with the effective and efficient raising and use of funds. As processes and

responsibility, financial management consists of decision making regarding the

following major activities among others.

1. Determination of funds requirement of the organization revenue generation and

mobilization.

2. Seeking and obtaining the right amount of funds at the right time for cash flow

management

3. Deploying available funds to the needs of the organization revenue application

and control, and

4. Giving proper stewardship for funds obtained and utilized (Abubakar, 1999).

Revenue

According to 1999 constitution, revenue is defined as any income or returns

accruing to or derived by the government from any source and include any receipt

however described arising from the operation of any law, and receipt however,

described from or in respect of any property held by government, and any returns by

way of interest or loans and dividends in respect of shares or interest held by

government in any company or statutory body. However, revenue can also be regarded

or referred to as tolls, taxes, rates, fees, royalties, rents and other receipts of

government from whatever sources such as proceeds from loans given out (Section

162(10) of 1999 Constitution).

Revenue accruing to any tier of government may be classified as recurrent or

capital. While the former is generated on day-to-day basis throughout the year, the

10

latter arises once in a while and in a larger proportion. They are also described as
internal and external sources of revenue respectively. Nevertheless, the word revenue

will be used in the context of this research to mean any amount of money coming into

the local government from whatever sources and which the local government has power

of appropriation.

Statutory Allocation

This consists of financial allocations approved by the constitution, to the

different tiers of government from the federation account and share of the state

government revenues that is allocated to the local governments.

External Sources

These are sources of Revenue that are sourced outside the local government e.g.

Donation, Aid, Loan et cetera.

Internally Generated Revenue (IGR)

This refers to the revenue or money collected by the local government from its

internal sources (within the Local Government Area). The internal sources of revenue

comprise many major and miscellaneous items aggregated to provide the required fund

for financing the enormous functions ascribed to local government as third tier of

government (Abubakar, 1999).

11

clear-cut definition of local

government to reflect Nigerian situation. To address this problem therefore (Akindele

et al, 2000) defines local government down to earth to reflect Nigerian local

government system when he maintains.

The Nigeria 1976 Guideline for Local Government Reform define local government as: Government at
the local level exercised through representative council established by law to exercise powers within
defined areas. These powers should give the council substantial control over local affairs (including
staffing) and institutional and financial powers to initiate and to determine and implement projects so as
to compliment the activities of the state and federal government in their areas, and ensure, through
devolution of functions to those councils and through the active participation of the people and their
traditional institutions, that local initiative and response to local needs and conditions are maximized
(Akindele et al, 2000:67).

15

A more comprehensive definition of local government is therefore provided as

the government at local/grassroots level created by law with the power to generate

revenue through taxation and to provide social/public goods and services to the local

population. These governments (local governments) are governed by democratically

elected representatives and are independent and autonomous from federal and state

governments (Ajayi, 2011) The above two description of local government in Nigeria

seem to be done in absolute terms, they tend to

produce a generalised negative

perceptions for all local governments in Nigeria. In essence, these definitions were not

fair and tend to relegate local

CHAPTER TWO

LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1 Introduction

In this chapter the study reviewed the relevant literature in the area of study, i.e.

revenue and service delivery and finally provided Fiscal Federalism theory as a

theoretical framework upon which our study is based. The key areas covered in our

literature review include; local government and finance, revenue, source of revenue,

development, the concept of socio-economic development and the role of local

government in the development process.

Finance is the backbone of any organization more so when such organization is saddled with
responsibilities for the design, promotion and administration of socio-economic development at the
grass roots level and the provision of a wide ranging number of service and infrastructural support in
such areas like primary education, basic health care and social welfare among others, which have since
the 1976 Local Government reforms formed the bedrock of local government function and
responsibilities in Nigeria. It follows, therefore, the extent to which a local government council is able to
perform its statutory functions and discharge its responsibilities would depend very much on the
amount of resources at disposal. (Local Government Reforms, 1976).

Section 162 (10) of 1999 Constitution defines revenue as ―any income or

returns accruing to the government from any source and include: any receipt

however described arising from the operation of any law, and receipt however

described from or in respect of any property held by government, any returns by way of

interest on loans and dividends in respect of shares of interest held by government in

any company or statutory body" (Constitution,1999). However, revenue can also be

defined as tolls, taxes, import rates,, fees royalties, refits and other receipts of government

from whatever source such as proceeds from loans given out.

12

Jumare, (1994) observes

Generally speaking revenue accruing to any tier of government may be classified as recurrent or capital.
While the former is generated on day-to- day basis throughout the year, the latter arises once in a while
and in a larger proportion. They are also described as internal and external sources of revenue
respectively. Barber (1978) remarked that the principal sources of local government revenue are local
rate, federal government grant and trading receipts. Even the 1976 reforms recognized the fact that if
meaningful local government is to be expected in Nigeria, much larger financial resources are needed.
(Jumare, 1994:50-51).

He further stated

the internal sources of revenue comprise many major and miscellaneous items aggregated to provide
the required fund for financing the enormous function ascribed to local Government as third tier of
government. Orewa and Adewumi (1983) stated that one of main reasons why a local council exists is to
collect various forms of revenues from its citizens and to use these to provide social services in an
efficient manner possible these sources are summarized into the following revenue heads: Tenement
rate/property rating, local license, fines and fees, earning from commercial undertaking and rent on
property, interest payment, and dividend and miscellaneous. (Jumare, 1994:50-51).

2.2 Conceptual Framework of Local Government

The concept of local governance is as old as the history of humanity, only

recently has it entered the broad discourse in the academic and practical literature

(Shah, 2006). This concept has created excitement within the scholarship and

practicing world of administration. It has attracted the attention of many scholars within

the academia who have seriously analyzed and dug deep into the meaning, genesis and

the need for its existence within all political arrangement of the world (Akindele. et al.

1997). Therefore, there is no unanimous acceptable definition among the scholars on

the definition of local Government.

The term local government has been defined variously by different scholars. In

the view of a scholar like Wraith, local government refers to locally elected councils

13

whose main purpose is to provide or administer services with as great degree of

independence as modern circumstance allow (Wraith, 1964. For Golding, local

government is the management of their own affairs by the people of their locality

(Golding, 1959).

Some other scholars have attempted to expand on and perhaps give greater

expression to the definitions given above. For Sorka, local government connotes the

decentralisation or dispersion of authoritative decision making where by the authority

to make decision is displaced downwards from remote points near the top

administration or outward from geographical locations, thus bringing authority closer to

the people affected by it (Sorka, 1978). In the same vein, Oyediran sees local

government as the diffusion of political process on area basis, i.e. local self

administration and inclusion of noble ideals of impartiality, protection of minority

rights and integrity, all of which are considered essential to the evolution of a liberal

democratic society (Oyediran, 1979).

Whatever else that may be said, it is clear from the above definitions that a local

government in any system is assumed to possess the following characteristics.

A given territory and population

An institutional structure for legislative purpose

A separate legal entity, a range of power and functions authorised by delegation

from the appropriate central or intermediate legislation

Within the Anglo-America tradition, autonomy is limited to common law such

as the test of reasonableness (Williams, 1978).

However, Appadorai (2004) defines local government as government by

popularly elected bodies charges with administration and executive duties in matters

14

concerning the inhabitants of a particular district or place. According to Shah (2006)

local government can be defined as thus:

A specific institutions or entities created by national constitutions (Brazil, Denmark. France. India, Italy,
Japan. Sweden), by state constitutions (Australia, the United States), by ordinary legislation of a higher
level of central government (New Zealand, the United Kingdom, most countries), or by executive order
(China) to deliver a range of specific services to a relatively small geo-graphically delineated area. Local
governance is a broader concept and is defined as the formulation and execution of collective action at
the local level. Thus, it encompasses the direct and indirect roles of formal institutions of local
government and government hierarchies, as well as the roles of informal norms, networks, community
organizations, and neighborhood associations in pursuing collective action by defining the framework
for citizen-citizen and citizen-state interactions, collective decision making, and delivery of local public
services. Local governance, therefore, includes the diverse objectives of vibrant, living, working, and
environmentally preserved selfgoverning communities.
The above definitions seem to have presented a comprehensive definition and

description of the concept of local government from the perspectives of different parts

of the world. However, the definition has not given a

governments to square one.

All these definition put together clearly show that local government is an

important institution for rapid and measurable development at the grassroots. However,

from these definitions, according to Tumini (2011) local government can be view as

thus:

- Is a sub-system playing its part within the larger national political system.

- Is the lower level government in a unitary politic system and lowest level

government in a federal three-level government.

- It is usually elected/selected and representative.

- It is established by law and has certain responsibilities

- It includes a certain population living within the confines of a defined territory.

- It is a legal entity of its own and can sue and be sued.

Therefore, local government in Nigerian context, the third tier of governance,

protected by the constitution which comprise of democratically elected representative

whose purpose is to provide basic services to the people at the grassroots.

16

2.3 Service Delivery

Joseph, (2014) sees services as the services as goods and social outputs that

people in a community wish to obtain for the common good, such as a livable

environment, clean water, good education, health care, security, and so on. (Jung,
1997). These services in the words of Joseph, (2014) include, water supply, sewerage

collection and disposal, refuse removal, electricity and gas supply, municipal health

services, municipal roads and storm water drainage, street lighting, municipal parks and

recreation. In this regard, the service to be provided by local government in Nigerian

are stated in the fourth schedule of the Constitution of the Federal Republic of Nigeria.

Joseph also added that, services have a direct and immediate effect on the

quality of the lives of the people in that community. For example, if the water that is

provided is of a poor quality or refuse is not collected regularly, it will contribute to the

creation of unhealthy and unsafe living environments. Poor services can also make it

difficult to attract business or industry to an area and will limit job opportunities for

residents.

According to Kadiresan (2009), service delivery refers to the goods and services

which the government both federal, state and local government provide to the general

public in which the consumption of which depends not on consumers‘ income, but only

on the need of the public. This definition says a lot about service delivery. However, it

concluded that service delivery reflects solely the public needs. This could not be true

in real sense, especially in our situation in Nigeria where social services are produced

mainly to address political issues and not really address social/public problem(s). in

fact, politics determine who gets what and how and why?

In the words of Lubega (2000), service delivery is the primary responsibility of

every government, whether military or civilian, in which adequate good and essential

17

services are produced by the public authorities (either direct or through contracting) to

the citizenry. In fact, it is the only bond between the government, on behalf of the state,

and the people.

Lubega (2000) has actually said much about service delivery and its importance
to the survival and sustainability of the social contract. But his definition seems to have

placed much emphasis on service delivery to be solely provided by the government

alone. He suggested that the citizenry would not pay allegiance to government (state)

when such services are not essentially provided and/or delivered. This his suggestion

could not be valid, especially in Nigerian situation, where the social services are

critically in short supply and the private sector (in the form of corporate social

responsibility) and international donor organisations would have to provide intervene in

various ways to complement the provision of such services.

Nangobi (1987) defined service delivery as an ―attitude or dispositional sense,

referring to the internalisation of even service values and norms. It is the delivery

concerned with supply ‗superior goods/products‘ based on the opinion of the

customers.

The above definition of service delivery by Nagobi seems to define service

delivery from point of view of business as he refers to the end users of services as

customers. This tends to narrow the scope of service delivery to business, for service

delivery can be provided to the general public by the government or its agencies.

Kitimbo (1995) asserts that service delivery should be designed in such a way to

provide maximum levels of services to respond to customers yearning in a specific

location and time. Therefore, location of service delivery and their accessibility

contribute to customer needs and performance satisfaction.

18

The above two definitions have contributed immensely towards understanding

of what service delivery is. However, both definitions state the importance of consumer

as the end user of services delivered. Therefore, if the services to be delivered are not

compatible with the consumers‘ needs and specifications, they (services) are null and

void. These definitions have not in any way defined or state precisely how to determine
the general consumers‘ or public need.

To Weng (2005) service delivery remains agency – centred such that the

government forced citizenry to interact with them the way they are organised and

delivered instead of the way that best makes sense from citizen‘s perspective, some of

the services provided remain unattended to.

According to the Uganda Particulars Assessment process Wakiso District report

(2001), it was indicated that people are unhappy with the service provision. The locals

are much concerned about the quality of the services yet most of the poor are scared of

inaccessible services. The quality of health service delivery for example are mentioned

to the poor and consultants attribute the poor service delivery to mismanagement of

public funds, lack of transparency, accountability and consultation from the poor

people who never get to know of the services provided and participate little or not in

planning for their funds.

Thus from the above discussion, there is need for local governments to provide

sufficient information concerning service delivery to the residents. In a budget, service

delivery can be strengthened through a number of ways:

Improved service delivery

Strengthened governance and accountability. (Ekpo, 1990).

However, (Zola, 1997) notes that despite the government‘s determination and

commitment, some of their expectations will take long time to be realised because we

19

have to live in the resources that our country can afford. Tax evasion and avoidance is

also explained by (Snavely, 1998) that compliance for locals to pay taxes to finance

service delivery requires sending messages in the media tracing the benefits of

compliance.

According to (Abigaba, 1996) the decentralisation of local authorities had a

loophole in the revenue collection and efficiency of service delivery. This was due to

the fact that laws were not clear as to times at who should collect revenues and to

whom to offer the services, the poor accounting system, untrained personnel and

politicians all affected the performance of local authorities. This is in agreement with

(Babiiha, 2002) who noted that the sub-counties in Ntungamo district give water

programmes a less priority thus giving minimal funding hindering construction of new

and rehabilitation of old safe and communal water resources.

As noted by Benga, (2010) lack of appropriate tools for ensuring adequate tax

compliance account for more than 85% loss in the ability of local governments in

Nigeria to generate revenue internally, as he asserts, ―overdependence of the local

government on their statutory allocation from Federation Account and grants from

federal government has contributed immensely to the failure of local governments to

come out with more effective measures towards ensuring tax compliance‖ (Benga,

2010).

Based on the above quotation, it could be realized that Benga has attributed

statutory allocation and grants to local government as major factors that discourage

local governments from designing and implementing strategies for ensuring tax payers

comply adequately toward paying taxes to local authorities. Therefore, if there were no

statutory allocation and adequate grants from federal government, local government

would have developed more effective measures towards ensuring tax compliance.

20

In line with the above, Jumare, (1994:79) observed that;

the criteria for distributing revenue transfers among local governments over-emphasized equalization
factors (equality and population being responsible for 80% (or more) rather than the taxable capacity of
local governments. The transfers thus serve as a source to local revenue improvement. As a result, local
taxes such as the property rates remain grossly under-developed.

Jumare, above attributed the negligence of local government toward improving

their taxable sources to the over-emphasis of the criteria for revenue sharing on

population and equality than the taxable capacity of the local government. This could

be true when reference is made to the over 80% of the local government expenditure,

both capital and recurrent, depends on the statutory allocation, rather than the internally

generated efforts.

Jumare, (1994) further stated that,

But the most devastating single action of state governments in respect of local finances is their decision
to abolish or suspend major internal revenue sources of the local government. Kano and Kaduna states
were the first states to abolish the poll or community tax as well as the cattle or Jangali tax as the civilian
governments assumed office on a radical political platform in October, 1979. Not wanting to be
outdone, the National Party of Nigeria (NPN), which controlled the most of the states (12 out of 19)
adopted the abolition of these taxes as a policy and promised to abolish them nationally by 1983.
Jumare, (1994:80).

Given the above explanation, it could be realized that the abolition of these

major internal revenue sources were made to satisfy political instincts or desires at the

expense of economic realities. The consequence of all these has been the over-reliance

of the local governments as well as most state governments on grants and allocation

from federation account.

Buhari, (1999) observes that service provision is a function of revenue, effective

financial management and political will of the government when he explain that,

21

No one doubts the importance of revenue towards service delivery. However, the magnitude of the
amount of revenue generated, both externally and internally, does not purely determine the amount of
service delivered. Two key factors, in addition to revenue generated, play significant roles in service
delivery; effective management of revenue generated and government political will. When these two
are absent or ineffective, the quantity of revenue generated would not play any significant role in
service delivery.

Base on the above submission, it could be realized that, effective management

of revenue and government political will are two critical factors, in addition to the

amount of revenue generated, that determine service delivery.

2.3.1 Service Delivery at Local Government

Service delivery refers to the provision of social or public goods that will

promote socio-economic wellbeing of the citizens. Public services offered by

government are numerous and may include the provision of public utilities, security,

economic development projects, and the enforcement of the law and so on. The

delivery of public goods and services at the local government level or the grass root is

aimed at moving the standard of living of the populace to the next level (Angahar,

2013).

Consequently, the efficient and effective provisions of basic amenities and

social infrastructures for the people at the grass root are key factors to the existence of

any government (Bolatito & Ibrahim, 2014). In sequel to the above, the Nigerian

constitution assigns service delivery responsibilities to the three tiers of government

with states and local government playing the most significant role in the delivery of

basic services. Some of the services expected form local government authority include

education, health, housing, water, rural electricity, waste disposal services, roads,

transport, and so on (Adeyemi, 2013; Agba, Akwara, & Idu, 2013). Thus local

government councils are required to serve the public interest in areas of constructing

22

roads, public markets, healthcare centres, drainages, transportation, motor parks,

building primary schools, among others (Bolatito & Ibrahim, 2014).

In support of this position, Agba, Akwara, & Idu (2013) contends that as agents

of rural development, local governments are to use funds made available to them by

both federal and state governments and their internally generated revenue to improve

on the lives of the people within their areas of operations through initiating and

attracting developmental projects to the local government such as provision of access

roads, water and rural electricity. Apart from being available political and
administrative organ for the transformation of rural communities, local governments

also act as the training ground for the breeding of the grassroots democracy

fundamental in national development (Adeyemo, 1995; Lawal and Oladunjoye, 2010).

2.4 The Role and Challenges of Local Government Towards Service Delivery

in Nigeria

Nigeria is the most populous country in Africa, with a population of 163 million , 64 percent of whom
live in rural areas. In the pursuit of development

at the grassroots, local government was created to provide level of pleasurable services

to rural dwellers.

Ola (1984), in Nigeria, local government is the third tier of government whose

major responsibility is to provide commensurate services to the rural dwellers.

Everywhere in the world, irrespective of the system of government, local government is

created to ensure efficient services at local level.

Local government as an agent of development is to use the fund made available to them by both central
and state government and the internally generated revenue (IGR) to improve on the live of the people
at the grassroots within the local government council's area of operation by initiating and attracting
developmental projects to the local councils such as provision of

23

access roads, water, and rural electricity: communal services such as the construction of roads, bridges,
and personal welfare in such area as education, housing, and health care service delivery system. (Ola,
1984).

In line with the above, the 1976 Nigerian Local Government Reform

Guidelines stated the principal aims of local (government as follows:

a) To make appropriate services and development activities responsible to local

wishes and initiatives by developing or delegating them to local

representatives bodies:
b) To facilitate the exercise of democratic self government close to the local

levels of our society, and to encourage initiative and leadership potential;

c) To mobilize human and material resources through the involvement of

members of the public in their local development;

d) To provide a two-way channel of communication between local

communities and government (both state and federal).

From the objectives above, one of the major reasons for creating local

government is to provide services using human and financial resources at its

disposal to facilitate development at the grassroots.

Local government is the lowest in the governmental hierarchy within the

concept of federalism. The federal government is the sovereign national, the state

government, a quasi-sovereign and local government infra-sovereign, subordinate

and subject to the control of the state government; yet it is a separate legal unit

being a body corporate having a common seal, with powers to sue and to be sued,

mainly providing obligatory municipal services (Samihah and Adelabu. 2011).

24

2.4.1 Challenges of Services Delivery at Local Government Level in Nigeria

Local government is the closet tier of government to the people in Nigeria, yet

the resident population in it is denied the benefits of its existence. This is evident in the

poor environmental state, deteriorating public school building, poor market facilities

and lack of health centers (Olusola, 2011). It was put in place for reasonable purposes

ranging from political, social, and economic reasons. These reasons are captured in

section 7 (2) of the Nigeria constitution (Iguisi. 2010). It is quite disturbing over the

years; that these purposes have not been fully realized. There has been a sustained
argument that the 774 Local Government Areas, which form the third tier of

government in Nigeria, are contributing little to national development to justify their

existence. Local government has not really facilitated rapid development at the

grassroots, which is the essence of their creation (Amaechi. 2012). The concept of

bringing governance closer to the people through a third-tier participatory form of

government has not materialized in Nigeria. Lack of capacity of local government to

fulfill the aspirations of their communities are caused by lack of adequate resources,

including inappropriate fiscal base, the usurpation of its power to raise internal revenue

and the manipulation of the state joint local government account (John, 2012). This

development according to Mimiko in (Aborisade. 2012) has made people to see the

councils as a place where top administrators' engage in corruption and an environment

where supposed professional had little or no idea of what the councils should be doing.

Yovbi has also blamed the people for the failure of local government: he gave the

reason as thus:

Lamentably, most Nigerians do not know the specific functions of the three tiers of government and
tend to put the blame for everything on the most visible tier. Clogged drains in front of their houses are
blamed on the Federal government, while the Chairman of their Local Council will makes away with
federal allocations to the area and

25

revenue generated, usually at the expense and to the discomfort of residents of the LGA. Majority of
Nigerians do not see that politics at the Local Government level can be a means of honest livelihood and
an opportunity to contribute effectively and meaningfully to the development of society. Therefore,
they sit by while those who know even less than themselves, walk away with easy victories won with
intimidation and then proceed to abuse citizens and erode the quality of our lives (Yovbi, 2008:88).

Yovbi above associates the failure of service delivery of local government

functionaries with the bad local politics. Thus, he directly related the challenges of

service delivery to bad local government politics. While in real sense, the challenges of
service delivery is a product not only bad local politics (through closely related to it)

but also other things like poor revenue generation strategies, poor utilisation of the

revenues generated and, among other things, poor project implementation mechanisms.

Another reason for the failure of local government in area of services delivery is

the role of the state governors in the affairs of local government. The governors are

found of taking over their financial allocation, taxes counterpart and refuse to conduct

Local government elections, but instead ruling local government with appointed

administrators, most of whom are party loyalists and their friends and relations turning

the entire process of local governments into irrelevance schemes of things (Ukonga

2012). This same view was also corroborated by Khaleel quoted in John when he

observed thus:

There is no state of the federal state of Nigeria where one form of illegality or the other is not
committed with funds of local government, through over deduction of primary school teacher's salary,
spurious state/local government joint account project, sponsoring of elections, taking over the statutory
functions of local government and handling them over to cronies and consultants, non-payments of
pensioners and non-utilisation of training fund despite the mandatory deduction of stipulated
percentages for these purposes... nine states out of the 36 states of the federal state of Nigeria

26

have elected representatives running the affairs of their local governments. This is central to the whole
problem because it is by planting stooges called caretaker committee, who neither have the mandate of
the people nor the moral strength to resist the excruciating control of the state government that
perpetuates the rot... In Imo State, local government workers embark on series of industrial actions to
get their accumulated salaries paid, while their five years arrears of all statutory allowances are fast
becoming bad debt. The drive to maximally control the local government councils is taking another
dimension now, with senior officers in the councils, who are Directors of Administration. Finance and
other officials being removed or deployed while lesser officers who are not qualified for such positions
are appointed to replace them... In Lagos State all manners of gazette, policies and laws are being
produced on daily basis with intention of taking over the collection of revenue from council's staff. In
Plateau State, staff of local government are being deployed and restricted to serve only in the local
government of their origin. (Ekpo, 1990).
However, the implication of this according to Ajibulu (2012) is that local

government is now considered as an extension of state's ministry. The inherent nature

of this problem has caused subservience, a situation where local government waits for

the next directives from states government before embarking on any developmental

projects. This has made local government an object of control and directives.

2.5 Local Government Revenue Sources and Service Delivery in Nigeria

There are basically two major sources of funds for the states and local

governments. These are allocation from the Federalism Accounts (including VAT,

Stabilization Receipts and General Ecology) and internal revenue generation (tax

revenue and non-tax revenue) (Odoko and Nnanna www.csae.ox.ac

books/epon/fiscal/federalism).

Intergovernmental transfers are made from the federal account to the states. The

funds are meant to provide general revenue to all tiers of government to fund basic

27

operations where their own revenue would not be sufficient to fulfill such

responsibilities. The states then transfer funds to local governments. Allocation of

funds in Nigeria is decided by the National Revenue Mobilization, Fiscal and

Allocation Commission (NRMFAM) based on criteria to ensure that there is equity in

allocation, both vertically between tiers of government and horizontally, across Nigeria

(Aniakon. 2009). The criteria are as follow:

- Vertical

Federal government — 52.7%

State government — 26.7%

Local government — 20.6%

- Horizontal

Equality-40%, Population-30%

Internally generated revenue - 10%

Land mass and terrain - 10%

Social development factor - 10%; made up of the following items:

- Territorial spread- 1.5%

- Rainfall-1.5%

- Primary/secondary enrolment — 4%

- Hospital beds - 3%

The social development factor is used to determine states that ha\e better

literacy levels, hospital facilities.

- Value added tax (VAT) Vertical

Vertical

Federal government- 15%

28

State government - 50%

Local government - 35%

Horizontal

Equality-50%

Population-30% Derivation-20%

According to Aniakon (2009) since the creation of the 12 states structure in

1967, States and local governments have been dependent on the federalism account.

The federalism account is shared among the three tiers of government as detailed in the

above vertical formula, which was last amended in 2004.

Aniakon (2009) also reveals that there is evidence of monthly payment to all

tiers of government since 2003 and the above percentage meant for local governments
is usually transferred from the federalism account to state accounts. However, there is

no evidence that the state transfers the same percentage to local governments.

2.5.1 Local Government Revenue Resources

Jumare, (1994) observed that, ―effective and virile fiscal federalism depends to a

large extent on the availability of financial resources‖. Wheare (1953) aptly argues that

each level of government should have adequate resources to perform its functions

without appealing to the other levels of government for financial assistance. He

emphasized the view that:

If state and local authorities, for example, find that the services allotted them are too expensive for
them to perform and (hence) they call upon the federal authority for grants and subsidies to assist them,
they are no longer coordinate with the federal government but subordinate to it Financial subordinate
marks an end of federalism, in fact, no matter how carefully the legal forms may be preserved. It follows
therefore that state. Local and federal authorities in a federalism must be given the power in the
constitution, each to have access to and control over its own sufficient

29

financial resources. Each must have a power to tax andto borrow for the financing of its own services by
itself (Wheare, 1953).

Local government financial structures fall within the system of fiscal federalism or

what is often defined as "Intergovernmental Fiscal relationship (IGR)" Under such

arrangement, there are five distinct sources of revenue for local government. These

are financial transfer, local tax which include; community tax or poll tax, property tax

or rates, users fees and charges and loans. Whereas financial transfer and loans are

external to local government, the others are internal to it. For convenience, we shall

make distinction between internal and external sources, with the external further split

into transfers (statutory allocations and grants) and loans and advances

External Sources
The external sources of revenue to local government are external because the

size of such revenue as well as when and how to generate them are invariably not

directly determined nor influenced by the local governments. They are statutorily given

to the local government to perform their designated or assigned functions. Within

the system of fiscal federalism, revenues accrued to the Federal or National

government are distributed among the component units of government. The

nature of inter-governmental fiscal relationships or financial transfers dictates the

pattern of allocations.

Financial transfers cover a wide range of relationship between levels of

government, in relation to local governments, the transfers consist of funds from principal

revenue sources of central or federal governments. These include funds that are

ultimately financed from the central government principal tax instruments (generally)

income and trade taxes) and from central government borrowing, financial transfers

are assuming considerable importance in central-local relation all over the world. The

30

practice goes by different names in different countries. Some of the common names

are "intergovernmental transfer", "statutory allocations" and "grants" among others.

Loans and Advances

Borrowing and credit transactions are other sources of external finance for

local authorities. The role of credit in the finance of service provision is an unsettled

issue. However, one consensus is that, the problem is not so much the borrowing

but what the acquired loans are used for. If proceeds from loans are used to

finance self-liquidating projects or income-generating activities,

repayment will not be much of a problem. But where they are spent on

consumption or recurrent expenditures, problems are bound to arise. Essentially,

there is nothing wrong with borrowing rates; the question is the judicious use of

what was borrowed. Davey, (1983) in Jumare, (2008) identified a number of sources

from which local governments could borrow. They include the following:

i. Loans from higher levels of government;

ii. Loans from international agencies, usually through the central government;

iii. Loans from central banks or loan-able fund from regional authorities;

iv. Interest-bearing bonds or stock normally with fixed dates for redemption;

v. Loans and over-drafts from commercial or public banks;

vi. Mortgages on physical assets;

vii. Internal borrowing from reserve funds such as superannuation funds for

employees or renewal funds for plant and equipment;

viii. Hire purchase or rental leasing of equipment; and

ix. Contractor finance for construction projects.

31

Bello-Imam and Aziegbe (1990) contended that, "it is difficult and indeed

dangerous to generalize about sources of loan at local government level".

They advance that "what is plausible to argue is that there are four dominant

borrowing systems that can be discerned at that level of government". The first is

where only the central government, assisted in some cases by internal organizations,

loan to local governments. The second category is where no central

government Institution exists to grant credit to this level of government;

hence, it relies absolutely on the money markets for loans. The third category is where

a central credit institution provides loan finance from the money market. Finally,

there are various countries where a centralized credit institution is the exclusive

predominant source of loans for local governments.

In Nigeria, loans are not attractive to local governments because they often
cannot meet the conditions usually to be fulfilled. The properties that may be

used as collateral do not have valid documents like certificates of occupancy.

The financial statements to be tendered for security are either in arrears or not in

existence. The manpower in place expected to manage the facility lacks the

technical know-how to manage the loans efficiently. Only loans obtained from

the other tiers of government may not require most of these conditions (Hassan,

2002)

Internal Revenue

Local government revenue sources could be generally grouped into tax and non

tax revenues. Tax revenue of local government falls under the system of

intergovernmental fiscal relationships. Two factors have been considered in allocating

tax powers amongst the component level of government in any federal system. These

are: administrative efficiency and fiscal independence. The efficiency criterion demands

32

that a tax be assigned to that level of government that will administer it efficiently at

minimum cost; while the fiscal independence requires that each level of government

should, as far as possible, raise adequate resources from the revenue sources assigned to

it to meet its needs and responsibilities. In effect, the allocation of tax powers should take

into consideration the respective assignment of function among the federating units

(Abubakar, 2000 in Jumare, 2008).

Experience in many countries strongly indicates that there is often a conflict

between the two determining criterion: the efficiency criterion tends to conflict with the

principle of fiscal independence. While the former would call for greater deal of

concentration of tax powers at the higher level of government due in large measure, to

the limited administrative capacity of lower level of government, the latter would

demand the devolution of more tax power to lower units of government to match the
functions assigned to them. In particular, arguments bordering on the economies of scale

and national security tend to give greater tax power to the higher level of government, to

the disadvantage of lower levels, especially local governments. Rowland (1976) in

Jumare, (2008) provides a slight departure from this viewpoint but nonetheless

corroborating the "fiscal centralizing" tendency of central or federal governments when

he noted that:

In a developing country the taxes and other revenue sources available to the states are usually
significantly less than are likely to be needed to finance the desirable expenditure programmes of
central and local Governments. The central government is, therefore, compelled to give close attention
to the allocation of fiscal power and usually reaches the decision that it must reserve to itself the most
productive or potentially most productive of taxable resources... Local authorities thus have to rely
heavily for their revenues ongovernment grants, minor taxes, licenses fees and charges for services.

33

Viewed within a historical context, even if the "fiscal stress-

hypothesis" alluded to by Rowland may not be that compelling, the picture provided

by the writer, however, aptly characterizes the development, and structure of

allocation of tax powers among component units within a federal system of

government. Federal Government reserves to itself only the potential and elastic taxes.

Local governments on the other hand have very narrow taxable capacity for their

expenditure needs. Local Government taxable base can be classified under three main

headings; Community Tax or Poll Tax, User Charges and Fees and; Property

Tax/Tenement Rate.

Poll Tax

The poll tax is a kind of levy imposed across the board by a governmental

authority on every eligible citizen. It is a form of direct taxation paid at a flat rate
irrespective of whether or not the taxpayer enjoys some kind of service provided by

the government. Dlakwa (1990) in Jumare, (2008) observes that synonyms like

community tax, head tax, and general tax are used as substitutes for poll tax.

He also remarks that poll tax has a pejorative connotation because, in its strict

sense as propagated by Fredrick Lugard, it refers to a mode of taxation imposed on a

"primitive community". Thus, its usage has become abundant with the advancements

in economic activities in Nigeria. The basic feature of poll tax is its uniform

application on members of a particular community having similar socio-economic

characteristics. Justifications for it are generally grouped as philosophical/political,

economic and even pedagogical (Dlakwa, 1990).

The philosophical justification is consistent with the principle of equality

between human beings. In this connection, poll tax is uniformly imposed on able

bodied people who are not employees in any government; or public organization.

34

The associated political angle to the philosophical justification is that, every

citizen in a community enjoys some form of services rendered by the government;

therefore, they should fulfill their civic duties by paying one form of tax or the other.

The payment of poll tax is accordingly adjudged the most congenial means of fulfilling

an individual obligation to the society.

The economic reason hinges on the argument that "the first need of the modern

government is revenue, which is indeed the breath of its nostrils". Another but less

fancied economic reason is that, it forces people out of idleness since the realization

that they have to pay tax. This compels individuals to seek employment and earn

income. The income level could move the individual away from the grouping those

eligible for the poll tax or they would have the means to pay if they still remain within

the bracket. On the pedagogical level, a corollary of the second (economic) reason is
that people get forced Into jobs that expose them to realities of life. This is expected to

lead to changes in attribute to work. Equally important is that, they get transformed

from "chronic loafers" and "habitual idlers" to productive members of the socio

economic system.

Musgrave and Hirnrichs (1969) have shown that tax structure development is

influenced by economic, political, and socio-cultural factors. Economic factors affect

tax structure development in two ways; first, as the structure of the economy changes

with economic development, the range of available tax bases also changes; secondly,

the economic objectives of tax policy pursued by a country vary with the stages of

economic development. Thus, the economic criteria vary with the stages of economic

development of the country. Political and socio-cultural factors form the oasis of the

standards of equity; these constitute a major factor in the choice of appropriate tax

instrument (Musgrave, 1969). Thus, Musgrave's analysis seems to indicate that the

35

theory of tax structure development must embrace elements of the economic objectives

of the country, the choice of appropriate lax base which itself is function of the

economic structure (measured by the degree of monetization and per capita income,

equity and administrative efficiency). Taxation therefore could be used to accomplish

many economic and social objectives as pointed out by Musgrave. Rabiu (1981)

reiterated this view.

According to him, government can use taxation to accomplish some economic

objectives such as influencing consumer demand and providing incentives for

production investment and savings. Buhari (1993) has classified the economic

objectives into four broad headings: revenue generation; Income distribution,

regulation and stabilization of the economy. Hanson (1988) listed the economic

reasons for imposition of taxes as follows: payment for the cost of general
administration, deference and social services, curtailing the consumption of harmful

commodities, redistribution of labour and reduction in equality of income.

Harvey (1982) on the other hand summarized the economic purpose of taxation

thus: payment for the goods and services produced by the country, compensating social

costs and benefits and regulation of the economy. He further explained that the

economy of a country could be regulated in order to develop important industries, to

protect infant industries, to move factors of production from one industry to another, to

reduce unemployment, to allocate resources and to encourage the growth of the

national income. All these objectives are geared towards economic growth and

development and are aimed at improving the welfare and living condition of the

citizens.

Fees and Charges:

36

Jumare (2008) observes that fees are charges are also known as user fees. They

are usually paid directly by those who benefit from a given product or service towards

meeting all or part of the cost. This contrasts with taxes, which are normally paid by

eligible citizens of a political/economic system as a legal obligation without regard to

the benefit that may accrue to the individual from how the tax is utilized. The basis for

charging is cost recovery. Policy may permit charging less than the full cost, or may

seek the recovery of more than the full cost, involving respectively a contribution to

generate revenue. Bello-Imam and Eronin (1990) advance that "the extent to which

services are financed from fees and charges rather than taxation is an important

element in politics for the overall distribution of income and welfare and for prices

and income". They also note that fees and charges are not generally intended to raise

revenue but to regulate the particular service on which they levied and the fees and

charges sometimes lag behind the cost of providing the service for which they are
charged. Kenneth Davey (1983) has advanced five grounds for charges:

i. Whether the service is a public or private good, it may not be possible

to provide it to everyone and it is thereforeunfair to charge its cost to

those taxpayers who cannot get it. This is one reason for charging for

water supplies, or for education in advance of universal provision. (This

argument may not apply where a service is financed through property

taxation, and the availability or absence of services is reflected in the

valuation).

ii. A service may involve an expensive or scarce resource and public consumption

needs to be disciplined. This, again, is often a reason for charging for water

supplies (particularly through metered systems) or for the prescription of

medical drugs.

37

iii. There may be widespread individual consumption, which relate, at least

partly, to choice rather than need. The use of recreational facilities is an

example.

iv. A service may be utilized for portable commercial operations as well as the

satisfaction of individual domestic needs. Water, electricity, refuse disposal,

posts, and telephones are all used extensively by industry, for example. (This

may lead to charging all consumers, or only those in commerce and industry.)

v. Charging may test out the directions and scale of public demand for a

service, where essential needs or types and standards of provision cannot

be unequivocally prescribed. A case can be made out for almost any form

of public expenditure; willingness to pay directly for it is a more significant

test of public preference.

Property/Tenement Rates
Orewa (1991) in Jumare, (2008) defines a rate as "a tax on the benefit

derived from the occupation or use of any landed property". Such property

includes underdeveloped land, or land on which a building or any physical

structure is located. It is sometimes referred to as tenement rate because it is not

imposed on plant, machinery and furniture. It could be regarded as a direct tax for

the reason that it is collected from user/occupier of the property. But there is the

possibility of shifting the burden from a tenant occupier to the owner; this

possibility implies that property or tenement rates can also be regarded as indirect

taxes. The basis of the assessment of a rate payable on a tenement can be

capital, rental, and lavational or flat rate value of the property.

The capital value is the estimated cost of constructing a building, including the

facilities it has, and in some cases taking account of the values of the land on

38

which the property is situated. Professional or chartered valuer's, who use

technical parameters to arrive at the estimated cost of the property, undertake

valuation of each tenement, a percentage, like five percent of the capital value, is

regarded as the annual rate able values, which forms the basis or assessment of the

rate payable each year.

Among the merits of the capital value assessment are the following.

One, it could be an equitable tax on capital investments of the same value in area.

Two, the valuation is easy to be revised (upwards) as the property in an area

appreciates in value over time. Three, it is either proportional or progressive and

places lower burden on the less affluent. However, it has some demerits.

Which include the following: First, the basis for assessment by professional values

may be difficult for the average ratepayer to understand. Second-and related to the first, it

could be overvalued or undervalued due to the sophisticated nature of the parameter.

The rental value assessment involves the use of information on annual rents

payable for different categories of buildings in an area devoted to various

users. The assumed annual rent becomes the basis of assessment. This approach

has the benefit of being suitable for local areas with a combination of rural and

urban locations, or where there are divergent property values. It is better understood,

relative to the capital method, given its relationship with the assumed market

value of the property. There is the additional advantage of flexibility in dealing

with booms and depressions. However, there are some problems that may confront

the system of rental valuation.

One is the issues of getting accurate information on current rents

from different categories of property. Two is the fact that the benefit of

39

flexibility could mean that downward reviews were considered during depression

which may entail insufficient receipts to cover normal expenses.

The location value method involves a cross between the capital and rental

value methods. On the other hand, it takes cognizance of the use to which a

property is put while consideration is given to the current rents from

properties in an area. On the other hand, it involves zoning, which takes account

of the value of property in each sector for the assessment. The vocational value

is useful as a first step from the rudimentary flat rate system. It is easy to

administer by non-professional valuation staff. It could be said to maintain equity

and does not discriminate in respect of the value or size of the buildings of the

same structure in an area. It also takes account of the assumed earnings capacity of

the property in each zone. However, it has the weakness that, if there is

discrimination as to uses to which different properties could be put in

determining the value, the structure or building could be changed, without the
changed status reflected in valuations. Problems of judgment and sociopolitical

influences may be brought to bear.

The flat rate assessment is a rudimentary system of assigning rates in a

rough-and-ready manner. It is a non-systematic way of assessing properties with each

category of building assumed to attract an average income there is no question of

valuation of any tenement. The system is useful as a first step in gaining

acceptability of property rating in areas where it did not exist previously as the

subject could get politically charged.

Within the Federal structure various institutional arrangements are used to

administer the property tax. These include: completely centralized systems, in which

the central government carries out the valuation and collects the rates as it is

40

done in countries such as France, Sweden, Turkey, etc. and completely

decentralized system in which the local government carries out the valuation and

collects the tax as in the United States, Japan, Brazil and some states in Nigeria. The

split allows the central government to carry out the valuation while local

government collects as in Kenya. The obverse from the split system which allots the

local government responsibility to value properties while the central government

collects as in the Netherlands and Tunisia (Hassan, 2002 in Jumare, 2008). Property

tax is universally a valuable and substantial source of funds for local

government especially in urban areas, and one most frequently end readily assigned

to local governments. The estimation of the potential contribution, which this form of

tax can make to local government finance, is partly based on the sizeable proportion of

local revenues derived from it in the developed Europe and American Countries and

partly on its advantages as a source of local revenue. Hepworlh (1984) said

they are the only independent taxing source available to local authorities in Great
Britain. For example, in Great Britain, it was calculated that tax rates provided 30%

of local government expenditure of 20.6 billion pounds in 1982. Fees and charges

yielded 22% and grants amounted to 48%. Similarly, in the United State of

America, in 1982, property rates yielded 25% of total local government

revenue of $315.322 billion (Bello, 1986 in Jumare, 2008).

The discussion so far has ignored the fact that property taxes are fully

grounded within the doctrine of welfare economics; the branch of economic theory

concerned with the social desirability of alternative means of funding of governmental

economic activities. In the Tie bout model, the property tax is just the cost of

purchasing public services, and each individual buys exactly the amount he or she

desires. Property taxes are therefore devoted to services connected with physical

41

development, such roads or drains and the revenues accrued from these sources are

expected to finance public services such as education, public health.

2.6 Theoretical Framework:

2.6.1 Fiscal Decentralization

Fiscal decentralization comprises the financial aspects of devolution to regional

and local government. It is the fashionable term; the alternative description ―central

local (or intergovernmental) fiscal relations‖ and ―fiscal federalism‖ are often used.

According to Davey (2003) fiscal decentralization theory covers two

interrelated issues. The first is the division of spending responsibilities and revenue

sources between levels of government (national, regional, local etc). The second issue

is the amount of discretion given to regional and local governments to determine their

expenditures and revenues (both in aggregate and detail).

These combined dimensions have a significant impact on the reality of

decentralization in its broader political and administrative sense. How much power and

responsibility regional and local governments actually exercise depends substantially

on;

i) What range of public services they finance

ii) Whether their revenues are commensurate with these responsibilities

iii) How much real choice they have in allocating their budget to individual services

iv) Whether they can determine the rates of their taxes and charges (both allowing

them to vary their spending level and making them answerable to the

taxpayers).

42

The network of the theory posits that local finances involve the following

variables/concepts

i) Spending responsibility

ii) Local taxes

iii) Intergovernmental transfer

iv) Capital finance

v) Local discretion

vi) Beneficiary of the government service (public)

Fig 2: The Network Theory of Fiscal Decentralization

The above theory is very important in study for that it explains how both

internal and external revenue helps local government in service delivery. These services
may range from primary health care, basic education and social welfare, development

agriculture among other services that are within the constitutional functions of local

government.

The above discussed theory is relevant and applicable to this research. It tends

to relate local taxes and intergovernmental transfer with service delivery with the

former being a discretion of local government council. Thus, as stated by the theory the

Local Taxes

Intergovernmental Transfer

Spending Responsibility

Local Discretion

Capital Finance

Service Delivery

43

extent to which services are delivered depends on not only the local taxes collected and

intergovernmental transfer but also the spending responsibility, capital finance and

local discretion of the local government council.

2.6.2 The Benefit Received Theory of Taxation

This theory holds that the taxes which an agent pays should be commensurate to

the benefit that he receives from the mix of goods and services supplied by the state

(Blum and Kalven, 1953).

The theoretical framework in the benefit received principle or expenditure –

revenue principle does not include the specification of a single fiscal system to be used

as a point of analysis into the governmental activities and their possible impact on the

taxable capacity of different tiers of government. In other words, the framework does

not however enable the fiscal specialist to indicate the alternate distribution of tax
burdens and public expenditures which will yield the desired result. Emphases should

be geared towards at the analysis of government mandatory responsible for such

expenditures and taxes decision making (Jumare, 1994). In this study, the theory

explains that tax payers paid tax to government only when they know that government

will provide them something in return in form of service delivery (as a quid pro-quo).

Therefore, the ability of government to raise revenue is dependent on its capacity to

provide the basic services to the people. Therefore, the government should try as much

as possible to provide more social services to the tax payers who will in turn, be

motivated towards paying more taxes.

44

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter focuses on the methodology of the study. This consist of methods

and approaches used, justification of the methods, instrument/tools used, population

sampling and size, sampling procedure employed, justification for sample selection

procedure and statistical techniques used in the research analysis.

3.2 Research Design

The research employed the use of both quantitative and qualitative analysis.

Quantitatively, survey research method is used; on the other hand content analysis of

the estimates of the two local governments has been made.

3.3 Population and Sample Size

Based on the 2006 population census figures, Sabon Gari Local Government

Area has a total population figure of 291,358 while Kudan Local Government Area has

a total population figure of 138,956. In terms of staff, Sabon Gari Local Government

has a total of 1400 staff out of which 150 are staff of the finance department, while
Kudan Local Government has a total workforce of 776 staff out of which 98 are staff of

the finance department. Both categories of the population would be used as our

population size from which our total sample size would be determined. Twenty percent

(20%) of the finance staff of each Local Government would be used as the sample size

of the study.

The total population of the two local governments is 291,358 for Sabon Gari

local government and 138,956 for Kudan Local Government, we shall determine our

sample size using the Yamani‘s Formula as follows;

45

n=

Where; n = Sample size

N = Population Size

e = Sampling Error or degree of precision.

Source; Charles,T.C. &Lawrence, L.S (1989).

If we take our sampling error to be 5% (0.05), we will have our sample as thus;

For Sabon Gari local government:

n=

n=

n=

n=

Therefore, the approximately sample size of Sabon Gari is 400;

For Kudan local government:

n=
n=

n=

n=

N 1 + N (e)2

291,358 1 + 291,358 (0.05)2 291,358 1 + 291,358 (0.0025)

291,358 1 + 728.395 291,358 729.395 n =399.5

138,956 1 + 138,956 (0.05)2 138,956 1 + 138,956 (0.0025)

138,956 1 + 347.39 138,956 348.39

n =398.85

46

Therefore, the approximate sample size of Kudan local government is 399.

However, in each category 10% of the sample size was added to the minimum

sample sizes determined using the Yamani formula. Therefore, the following table

presents the sample sizes of each of the selected Local Government Areas:

Local government Sample Size Staff Beneficiary Members Sabon Gari 30 440 Kudan 20 439 Total 50
879 Source: Researcher‘s Survey, 2014.

The above table represents the sample size of the staff and beneficiaries in the

studied areas. Sabon Gari Local Government has a staff sample size of 30 and 440

beneficiaries. On the other hand, Kudan Local Government has a sample size of 20

staff and 439 beneficiaries.

Thus, our total sample size of the staff (finance) is fifty (50) i.e 30 + 20

In terms of beneficiaries, forty (40) beneficiaries would be selected in each of

the 11 wards of the Sabon Gari Local Government Area, while forty four (44)

beneficiaries would be selected in each of 10 wards of the Kudan Local Government

Area. Therefore, the total community members of 880 constitute the sample size of the
community members. In all, a sample size of 930 i.e (50 + 215) was adapted as the

sample size of the study.

3.4 Sampling Methods

A multi-stage sampling technique was employed for this study. Purposive

sampling technique was used in selecting the staff respondents in the local government

who are mainly from finance department and especially those that have direct bearing

with the revenue generation in the Local Government Area. However, cluster sampling

technique was used in selecting respondents, base on the number of wards per each

47

local government of the study. And finally, community members were randomly

selected taken into consideration their occupations and sex category.

A simple random sampling (SRS) was employed in the selection of the sample

for this study. A sampling frame of each of the members comprises of staff of both

Kudan and Sabon Gari Local Governments and community members (youths, elders,

groups, leaders, etc) will be developed by assigning a number to each member of the

three (2) groups.

3.5 Instruments of Data Collection

Both primary and secondary data will be collected and analyzed to test the

hypotheses already formulated in section one. However, both quantitative and

qualitative data would also be used for the study. The following are the methods and

instrument of data collection.

3.5.1 Primary Data

These are the first hand data to be used for the study which would be collected

through field work. Two basic instruments would be used for collecting the primary

data. These are:

i. Questionnaires: A carefully designed but wide-ranging questions aimed at

eliciting right responses was constructed and piloted in order to detect any

abnormalities or inherent problems. From the comments and remarks from the

pilot questionnaire respondents, the entire questionnaire was reviewed and

improved upon. While some questions were open-ended, a few were Yes or No

format.

48

3.5.2 Secondary Data

The study made use of secondary sources. These are second hand or ready

made data collected, organized and presented by other researchers, agencies and

government organizations in the form of reports. This type of data is critically

important for examining the relationship between revenue and service delivery and also

to test our hypotheses. These data are available in the library, Federal State and Local

Government financial reports, project documents and accounting books among others.

3.6 Administration of Questionnaire

The questionnaire was designed to capture detailed profile of the

respondents in addition to what they consider as the benefits and challenges

facing the revenue generation. The questionnaire was administered through the

employment of a research assistant that facilitated the process, while others

were self administered by the researcher to the respondents. All the sample size

(50 + 296) were given questionnaire. The number of questionnaires

administered and returned will be use for data analysis.

3.7 Method of Data Analysis

All the data collected will be organized, presented and analyzed using both

descriptive and inferential statistical tools. The opinion of our respondents are

presented in Tables, percentages and average would be used as descriptive statistical

tools, while Pearson‘s coefficient correlation analysis of SPSS 16.0 would be used to

test hypotheses to determine the nature and strength of the relationship between

revenue generation and in the local government case study. However, chi-square (x2)

distribution would be employed as analytical statistical tools to test whether effective

49

management of revenue has positive impact in the promotion of grass root in the two

Local Government Areas.

50

CHAPTER FOUR

HISTORICAL BACKGROUND AND DEVELOPMENT OF SABON GARI AND KUDAN LOCAL GOVERNMENT
AREAS

4.1 Sabon Gari Local Government Area

Sabon Gari Local Government Area came into being through several

transformations of Sabon Gari town which literally means ―New Town‖ and it is

surrounded by villages (native authority system). Even though the name came into

being before the arrival of colonial masters, history has it that one of the younger

brothers of the late Emir of Zazzau (Alu) who contested for the throne and lost left
Zaria city with his family and finally settled at the present township stadium in Club

Street. Until when the British Colonial masters finally came in 1913 and decided to

shift the family of the prince to somewhere after the railway line that comes from the

Northern Headquarters of NRC to Bauchi. The extended family of the prince is found

in DogonBauchi, Ang. Gabas, and Ang. Gwado.

Other important villages that have been in existence even before the Usman Dan

Fodio Jihad are: Bomo, Basawa and Dogarawa. Oral tradition has it that all Emirs of

Zazzau whenever they embarked on a visit to their wards, they will spend a day each in

these villages mentioned above because of their historical origins.

Sabon Gari town, from which the local government derives its name was

established as a result of the development of communication, commerce and military

establishments in the area after it was formally created by the British colonial

administration in the north as a rehabilitation centre for railway workers in 1903. It

became one of the five urban centres in the northern part of the country which include

Kano, Jos, Kaduna and Zungeru. This development facilitated the migration of people

from all the different parts of the country into Sabon Gari town to give it a unique

cosmopolitan nature and outlook and the unification of the surrounding villages such as

51

SabonGari town itself, Dogon Bauchi, Jushin Waje, Tsugugi, Unguwar Kanawa,

Muchiya, Chikaji, Hanwa, Palladan, Jama‘a, Basawa, Samaru, Bomo, Sakadadi,

Gwanda, Zangon DanBorno, Zabi, Shika – Dam, Katankga, Tohu, Hayin Ojo,

Unguwar Jaba, Daurawa, Kwangila, Unguwar Mai Gwado, GRA and the local

government headquarters, Dogarawa to form one administrative block, gave it a district

status from 1960 to 1985. In 1985 additional districts were made as a result of increase

in population.

When the local government councils were first created in Nigeria, Sabon Gari
district formed part of the then Zaria Local Government Council which was itself being

transformed from the Native Authority system to a local government system.

Subsequently, Sabon Gari Local District and Soba District were carved out of Zaria

Local Government and merged to create Soba Local Government Council in September

(1989).

Later on the 27th August, 1991, the then Military Administrator under retired

General and President Ibrahim Badamasi Babangida, carved out Sabon Gari district

from Soba Local Government Area to form the new existing Sabon Gari Local

Government Area.

Number of Districts

Sabon Gari is one of the districts of Zazzau Emirate Council and the first

district head of Sabon Gari was the late Emir of Zazzau Mohammed Aminu (OFR) who

was appointed first as Wakilin Tsabta and later Iyan Zazzau. After his appointment as

the Emir of Zazzau he later on appointed Saidu Zango as IyanZazzau and district head

of SabonGari. The third district head of Sabon Gari and the Iyan Zazzau was Mallam

Mohammadu Bashari Aminu the son of former Emir of Zazzau and is still the district

52

head until when Basawa district was added. In April 2001 during the administration of

Alh. (Dr) Ahmed Mohammed Makarfi additional four districts were created from these

two districts making the number of districts in Sabon Gari Local Government to six

namely:

1. Sabon Gari

2. Basawa

3. Muchiya

4. Samaru
5. Bomo

6. Hanwa.

Population, Land Area and Major languages

The Local Government Area has a population of about 291,358 people with a

land area of approximately 600 kilometres square. It has boundaries with the

neighbouring Local Government Areas such as:

(a) To the North – Kudan Local Government Area

(b) To the West – Giwa Local Government Area.

(c) To the South West - Soba Local Government Area.

(d) To the East – Zaria local government.

Many civil servants are now involved in large scale farming, producing a large

yield of cash and food crops. Effort also is being made by the local government council

to form co-operative societies by both groups of men and women for the establishment

of cottage industries for the making of soaps, pomades, hairdressing, candles sewing,

knitting etc.

The established industries and factories are situated around Chikaji and Zabi

Industrial Areas. They include:

53

a. Electricity Meter Company of Nigeria (EMCON)

b. John Holt Agro – Engineering Company

c. Premier Seeds (Producers of variety improved seeds)

d. UAC Seeds (as above)

e. Arewa poultry farm

f. Comrade cycle (bicycle assembly plant)

g. Zazzau Ginnery

h. Cotton and Agricultural Processing Company (CAP)

i. British American Tobacco Company (BAT)

j. A.J. Seward (Makers of Cosmetics)

k. Kaduna Chalk Manufacturing Company

l. Ladan Bakery and Confectionaries

m. Zaria Confectionaries

n. Several Block Industries

o. Coca Cola Depot Company

p. Cadbury Nigeria Ltd

q. Zaria Oil Mills

r. Trow Flour Mills

s. Tulips Food and Confectionaries

t. Mrs Biggs

u. Al Nasiha Restaurant

v. Habib Restaurant

w. Red Onions

x. Chicken Republic

y. Ostrict Bakery

54

z. Mazari Nails.

The main trade and commercial houses are situated around the GRA including

Leventis Stores, John Holts, G. Bolivani, U.A.C, PZ Cusson, Zaria, Longman Nigeria

Ltd, BAT Leaf buying centre and International Leaf Buying Centre. There are some big

private business houses like Harmony Brothers, Hamzet Stores, Abdu Kwari Ventures,

Amil Motors, Hakuri Motors, Matso – Matso Motors, Olu Professionals, Block

Industries and Agro Allied Companies Scattered all around the area. The local

government has many construction firms (boreholes and water construction works),
Lilleiker Brothers (electricity engineering works).

The availability of immediate fund is the life line of all business interactions. It

is gladding to note that all banks operating in Nigeria are adequately represented in

Sabon Gari Local Government Area. Sabon Gari local government is second to none

but Kaduna the state capital, in terms of Banking industry. The following are some of

the many banks found in Sabon Gari local government:

a. Union Bank – Sabon Gari Branch

b. Union Bank – Samaru Branch

c. UBA – Sabon Gari Branch

d. UBA – Samaru Branch

e. First Bank – Sabon Gari Branch

f. First bank – Samaru Branch

g. Main Street bank – Sabon Gari Branch

h. Nigeria Agricultural and Cooperative Bank

i. Stanbic IBTC Bank – Sabon Gari Branch

j. Stanbic IBTC Bank – Samaru Branch

k. Unity Bank – Sabon Gari Branch

55

l. Keystone Bank – Sabon Gari Branch

m. Inter Continental Bank – Sabon Gari Branch

n. Diamond Bank – Sabon Gari Branch

o. Diamond Bank – Samaru Branch

p. First City Monument Bank – Sabon Gari Branch

q. Oceanic Bank – Sabon Gari Branch

r. Zenith Bank – Sabon Gari Branch

s. Guaranty Trust Bank – Sabon Gari Branch

t. Skye Bank – Sabon Gari Branch

u. Fidelity Bank – Sabon Gari Branch

v. Ahmadu Bello University Community Bank.

Filling Stations in the Local Government

1. M R Filling Station Samaru

2. Oando Filling Station Samaru

3. Con Oil Filling Station Zangon Shanu

4. A.P Filling Station Palladan

5. Wada Musa Filling Station Palladan

6. Linhab Filling Station Palladan

7. Shirash Filling Station Basawa

8. Al-Mudeco Filling Station Kwangila

9. Asas Filling Station Basawa

10. Mobil Filling Station Kwangila

11. Banadeen Filling Station Kwangila

12. Likoro Filling Station Fly Over Kwangila

13. Asas Filling Station Yan Karfe Hanwa

56

14. Likoro Filling Station Kwangila

15. Al-Mudeco Filling Station Kwangila

16. First Prestige Filling Station Kano Junction

17. Dutsen Wai Filling Station Kano Junction

18. Dutsen Wai Filling Station GRA

19. Al Mudeco Filling Station Dogarawa

20. BMB Filling Station Dogarawa

21. Oando Filling Station MTD Junction

22. Dahiru Garba Filling Station MTD Junction

23. First Prestige Filling Station Opposite BAT Staff Club

24. Salbas Filling Station Opposite Nitel

25. Total Filling Station Opposite Union Bank

26. Mobile Filling Station Opposite PZ

27. Con Oil Opposite PZ

28. Oando Filling Station Opposite Oceanic Bank

29. Oando Filling Station Opposite Main Street Bank

30. Fasada Filling Station Opposite First Bank

31. M R S Filling Station near Main Motor Park Sabon Gari

32. Total Filling Station Opposite Motor Park Sabon Gari

33. Shirash Filling Station Sabon Gari

34. Mobile Filling Station Opposite Kasuwa Mata

35. Asas Filling Station Muchia Round About

36. Munirat Filling Station Dogarawa

37. Al – Sadakahum Filling Station Dogarawa.

57

Markets

Sabon Gari local government was endowed with a number of flourishing

markets where people from far and near conduct business interaction daily. The

markets in the area operate daily because of the availability of almost all requirements

in each and every market operating therein. Manufactured goods from within and

outside the country are traded there on daily basis. They include:

a. Sabon Gari Market Comprising Zone A and B

b. Samaru Central Market

c. Kasuwar Mata Market

d. Bayan Gidan Iya Market

e. Palladan Market

f. Dogarawa Tomatoes Market

g. Sabon Gari Tomatoes Market

h. Zangon Shanu Cattle Market

i. Kwangila Ram/Cattle Market

j. Muchia Market

k. Yan Karfe Market.

All the markets in category ―a – e‖ sell variety of manufactured goods such as

tin products, cooking oil, soaps, cosmetics and other domestic needs. Textile materials,

food crops, meat, leather works, etc ―f – k" market sell what their names implies such

as tomatoes ingredients, cattle, ram and goats.

58

Natural Economic Endowment

a. Minerals

There exist some mineral resources in the area which are found in appreciable

quantities like iron, precious stones such as grid etc. There are some other mineral

resources that are found in small quantities for local use.

b. Agriculture

Farming is the pre dominant occupation of the majority of people in Sabon Gari

Local Government Area. They produce both cash and food crops in large quantity that
make the area as one of the major food basket of the Kaduna state. Crop such as guinea

corn, maize, yam, potatoes (both sweet and foreign) are grown. The breakdown is as

follows:

(i) Commercial Crops

The following commercial crops are found in Basawa, Sakadali, Anguwan

kanawa, Jushi and Anguwan Jaba;

Cotton Tomatoes Maize

Yams Rice Groundnut

Pepper Sugar cane Tobacco

Cattle

(ii) Food Crops

Guinea crops Millet Cassava

Beans Sweet potatoes Dairies

Poultry Rams and goats Fisheries

59

(a) Others

There are economic trees in abundance that are produced in commercial

quantity and local use, Boabob, Dutchart, Mango, Sheabutter Trees, Cashew, Barrasus,

Mahogany, timber products, etc, are found for local and export uses.

Tourism Potentials

The tourism attractions in the area are Dam project at Shika, the Ahmadu Bello

University Geological and Veterinary sector, Dam and Museum at Samaru, the state
government fishers at Bomo, the Army Depot Museum at Sabon Gari and the historical

Queen Amina wall at Shika, Katanga, Sakadadi, Zabi and Gwanda Villages. Its main

markets (see items 6) are also tourist‘s attractive areas.

There are spread accommodation facilities in all direction of the Local

Government Area. They include Zaria Hotel, Zaria motel, Zaria Club, Polo Club,

Emanto Guest Inn, Jim Harrison Hotel, Beauty Guest Inn, Rahama Guest Inn, ABU

Staff Club, Aviation Staff Club, Ariya Guest Inn, Splendid Hotel and Guest Inn, Soho

Hotel, TJ Place Hotel, Zazzau Royal Guest Inn, Hanwa Guest Inn, Sweet Guest Inn,

Valley Guest Inn. Some of these hotels and restaurants are situated around GRA, while

others operate fully in the township area. There are barbing and hair dressing saloons,

photographic and sound studios within the Local Government Area.

Sabon Gari local government has good road network and the Nigeria College of

Aviation Technology based in the Local Government Area run a skeletal air services

for traveler within Nigeria. Buses and car hire services are operated for site visit within

and outside the Local Government Area.

Social Attraction

(a) Transportation

The local government has the following:

60

i. Railway line linking the local government with other states of the federalism.

ii. Road transport: This is made up of motor cars, trucks, buses, tractors and

vehicles travelling to all the states across the nation.

iii. National air taxis to all the states by use of College of Aviation Technology Air

strips and small Nigerian Airway planes which provide the air services

nationwide.

iv. The boats and canoes for local use in the Dam and river Galma to surrounding
towns and villages are available.

(b) Power Supply

The Power Holding Company of Nigeria (PHCN) has been supplying electricity

to all the areas of the local government. There are also private and individual power

plants spread all over the area. The rural electrification project controlled by the

Kaduna State electrification board reached many villages in the area.

(c) Educational Institutions

Sabon Gari Local Government Area has about thirty nine (39) primary schools

and more than twelve (12) post primary institutions. These are all public institutions.

We have however private primary and post primary schools spread all over the Local

Government Area. The local government is also hosting a number of educational

institutions of higher learning which include:

1. Ahmadu Bello University, Zaria

This University is the largest in sub Sahara Africa and one of the

greatest in Africa. It has the Main Campus in Samaru, Institute of

Administration Kongo Campus, Institute of Agricultural Research Samaru,

National Agricultural Extension Research and Liaison Services, National

61

Animal Production Research Institute Shika, Ahmadu Bello University

Teaching Hospital Shika and is affiliated to many tertiary institutions like

Kaduna polytechnic etc.

2. The Nigerian Institute of Transport Technology (NITT) Zaria

3. Nigerian College of Aviation Technology Zaria

4. National Research Institute for Leather and Chemical Technology Zaria

5. Chemical Research Technology (CHELTECH) Zaria

6. Industrial Development Centre (IDC)

7. Centre for Energy Research and Training (CERT) Zaria.

(d) Army and Police Establishment/Security

The Local Government Area is opportune to host many military formations like:

i. The Nigerian Army Training Chindit Barracks ii. The Nigerian Military School iii. The Nigerian Army
School of Military Police iv. Nigerian Army Physical Training Corps v. The Nigerian Army Engineers vi. The
Nigeria Police Area Command vii. The Federal Road Safety Corps viii. National Security and Civil Defence
Corp (NSCDC) ix. The Nigerian Police Mobile Police (MOPOL).

Sabon Gari Local Government Area has the highest number of military

formations in Kaduna state, outside Kaduna metropolis. The combination of the

presence of high number of both the military and police gave the area a big sense of

security.

62

(e) Culture

The culture is a mixed of religion and western pattern type, though it has

traditional values by the complexity of the ethnic groups that form the society and

population of the Local Government Area.

Festivals observed are mainly religious such as Sallah festivals, Eid-El Fitr, Eid

– El – Kabir as well as Eid – El – Moulud for Muslism. Christmas, Easter and New

Year for Christians. There are also many festivals in accordance with ethnicity of the

people who migrate into the area.

(f) Water and Health Facilities

Pipe borne water is the stable water supply of the area through the existing

water works. Bore holes and wells were also provided by the local government council
in rural areas.

There are eighteen (18) health clinics spread over the Local Government Area

which provided first aid consultancy services and primary health care development.

Serious illness, operations and special cases are being referred to the Ahmadu Bello

University Teaching Hospital Shika. There are also several private hospitals and clinics

all over the area such as Major Ibrahim Abdullahi Hospital which is a state government

hospital and so many private hospitals like Limi Hospital, Ladiya Hospital, Salama

Hospital, Jama‘a Hospital, Savanna Hospital and Mayfair Clinic etc.

(g) Religion of the Local Government

The majority of the people are Muslims while there are also Christians in the

area.

(h) Incentives

There is abundant land for development, agriculture and animal husbandry. The

people are hardworking and are self-reliant in food production, but need to be provided

63

with facilities and be motivated to further exploit their potentialities and the natural

resources around them for the benefit of not only their own area but the investors, state

and the nation in general. The taxable capacity of the local government is also very

high, partly because of large concentration of business outfits and industrial estate.

These have made the local government to have more revenue potentials for service

delivery.

The area has been endowed with a large population and with many institutions

of all types, many highly educated people in various disciplines. Energetic, skilled and

semi-skilled labour are in abundance. The area is no doubt bestowed with sufficient

human resources to run the activities so much deserved by investors.

Apart from the above natural resources, the area has the highest number of
military formations and police area command. This facilitates have provided adequate

security in the area. No wonder the people are living with one another peacefully

despite their differences in cultural and religious background. The local government is

ready to assist, be soft and respond to investors requirements whenever the need arises.

4.2 Historical Background and Development of Kudan Local Government

Area

Kudan local government was created from the former Makarfi local government

during the military regime of Gen. SaniAbacha, on the 1st October 1996 which makes

the present numbers of the Local Government Areas the total of 774 in Nigeria.

Kudan local government is bordered by the Makarfi local government to the

east, by the SabonGari local government to the west by Giwa to South and Danja

Local Government Area of Katsina state to the North. Kudan local government

Headquarter is located at Hunkuyi.

64

Geographical Features of Kudan Local Government

Kudan local government is a fertiles land and loamy soil which resulted to

farming as the major occupation of the people in the area. The mainly agricultural

activities such as farming, fishing, cattle rearing and forestry are the main activities of

the populace. There are also many agricultural crops produced for commercial purposes

in the area such as maize, genui corn, groundnuts, tomatoes, Arish potatoes, carrots,

cabbages, pepper, sugar cane, garden eggs etc.

Main Occupation of the People

Due to the location of the local government in the rural area, the main

occupation of the people are farming, fishing and cattle rearing.

Traditional Set-Up
The majority of the people are Hausas and Fulanis. Also the local government

found under the emirate of Zazzau, which has five districts, headed by the following:

S/No District Area Name of district Head Title 1 Hunkuyi District Alh. HalliruMamuda TukuranZazzau 2
Kudan District Alh. IsiakuAshiru Christian Zazzau 3 Likoro District Engr. AbdullahiNuhu Chiroma of
Zazzau 4 Doka District Alh. Mu‘azuShehuDoka Shenagu of Zazzau 5 K/Wali District Alh. Namadi K/Wali
Wagu of Zazzau

Main Market/Days

1. Hunkuyi Market

(a) Market which is producing tomatoes, Arish potatoes and vegetables in

commercial quantities.

(b) Market day – Saturday

65

2. Kudan Market

(b) Is a market which is producing tomatoes, sugar cane and other vegetables in

commercial quantities.

(c) Market day - Friday

3. Tashankade tomatoes market seasonal

4. K/Wali Sugar Cane Market

Seasonal

5. Hawanmaimashi tomatoes market

Seasonal

6. Jajagurden eggs (Gauta) market

Seasonal
Motor Park

(1) Hunkuyi motor park

(2) SabonGarinHunkuyi motor park

(3) Kudan motor park

(4) Dokamotor park.

Slaughter Houses

1. Local slaughter house at Hunkuyi

2. Local slaughter house at Kudan

3. Local slaughter house at Likoro

4. Local slaughter house at Doka.

Tenement Rate

As a result of the local government located at the rural area there are poor turn

over in term of tenement rates. Only few fuelling stations located at the area which are

the sources of tenement rate.

66

4.3 Organisational Structure of the Administration of Local Government

Departments

Due to the unified system of local government administration, both Kudanand

SabonGari localgovernment have essentially the same administrative structures and

processes. The following diagram is the structure of the local government departments

of the two Local Government Areas under study;

67
Local Government Council

Head of Local Government Administration

Internal Audit Section

Works Transport Housing & Survey Department

Budget Planning Research & Statistics Department

Finance and Supplies Department

Administration and General Services Department

Agriculture & Natural Resources Department

Social Development Education, Information Sport & Culture Department

Structure of Local Government Component Department

Primary Health Care Department

68

Functions of the Various Departments at the Local Government

Finance and Supply Department

This Department is headed by Director of Finance and Supply Or Town Treasurer

with other Units under his control its functions are as follows:

Revenue Generation

Keeping financial records

Disbursement of fund to the system (Local Governments).

Consulting the Local Government Finance, supervising the account of all

Departments of the Local Government

Publishing monthly and annual Financial Statement of the Local Government.

Providing receipt to other Departments for Revenue Generation

Preparation of the Vouchers of the Staff of the Local Government

They coordinate the activities of the Revenue collections on the field.

Department of Agriculture and Natural Resources

The Department is headed by Director of Agric with appointed Supervisory Councilor

answerable to the Chief expect the Department is responsible of supplying of fertilizer to the

farmers, carrying out extension service educating farmers in planting of crops, husbandry,

and poultry e.t.c.

Department of Administration & General Service Headed by (Director)

This Department serves as the administrative center of the Local Government. It is

concerned with staff matter‘s include the section, appointment, promotion and discipline of

officers and their general well being. The Admin Department has the Junior Staff

Management Committee (JSMC) which is responsible for the appointment, promotion and

discipline of officers on GL 01-06 and it consist of representative of each Department.

69

Moreover, the appointments, promotion and discipline of staff on grade level 07 and

above the responsibility of Local Government Service Commission, the Admin Department

also coordinate the activities of their units.

Primary Health Care Department

The Department is also headed by Director Primary Health Care under the

administration advice of a Supervisory Councilor who is answerable to the Chairman. The

Department caters for Health Facilities and control of Local Medical Units.

It is also responsible for service such as refuse dump collection.

Educating the Community on Health and Immunization Programmes against diseases.

They provide maternity services to the Local Government dwellers.

Department of Works and Housing

The Department is headed by Director of Works. He works in hand with the

Supervisory Councilor who is answerable to the Chairman, the Department is responsible for

the general works of the Local Government.

Road construction

Building of motor parks

Installation of market

Naming of streets

Maintenance and repairs of Local Government machinery and furniture.

Department of Budget Planning Research and Statistics

The Department is headed by Director of Budget

The Department is responsible for the annual estimates

70

Also ensuring budgetary control

Checking the P.Vs from various Departments for accuracy and accountability and

good governance.

Education and Social Development

This Department is headed by the Director of Education with the appointed

Supervisory Councilor who is answerable to the Chairman. The Department is responsible for

the education matters in the Local government. Appointment of Primary School teacher‘s

Headmasters are all under their Department. Also the distribution of school material and

payment of teachers salaries are taken care of by the Department. Under this Department we

have community Development. Information Adult education and now under the new Scheme

of Service Cooperative Unit from Agric Department is now under E.S.P.

In summary, all the Departments Admin and General Service Departments, ESD,

Agric, Works, Budget, PUH, has a strong link with Finance and Supply Department, due to
the issue of Finance, Agric Department will not supply fertilizer and chemicals without the

concern of Finance Department. Salaries will not be paid, construction of culvert, renovation

of Primary Schools, Clinics, supply of immunization materials will not be done without

Finance.

Above all the running cost of the whole Local Government will also affected e.g.

provision of working materials for the smooth running of day-day activities of the General

Admin of the Local Government will collapse if Finance and Supply did not disburse the

fund accordingly.

Some List of Projects Implemented by Kudan Local Government

1. Kudan Local Government

Works Department

Electrification at:

71

Tashan Kade Ward

Kauran Wali

Anguwan Dantaru

Agric Department

Purchase of fertilizer to distribute across the Wards.

Purchase of three Nos. Trucks

Renovation of Slaughter Slab at:

- Kauran Wali

- Kudan

- Hunkuyi

Education Department

Completion of 2No. classroom with office and 2No. Toilets @ neighborhood, Hunkuyi and
Kudan.

- Construction of additional classrooms @ neighborhood Secondary School at Saban

Garin Hunkuyi Ward, Taba, Dumunga.

- Supply of Primary School funitures at

- Likoro

- Garu

- Sabon Garin Hunkuyi

Health

- Construction of Health Clinic at Tashan Kanawa, Doka Ward.

- Construction of Cool Room at L.G. Secretariat

- Renovation of PHC Kauran Wali

72

- Purchase of Isuzu (FTR) Refuse Collection Truck (JP)

- Completion of Health Centre at Nasarawan Kudan

- Purchase of Ambulance (JP).

2. Sabon Gari Local Government

Health Department

- Construction of Shika Dam Health Clinic and Fencing

- Purchase of Solar Powered refrigerator for Health Facilities.

- Completion of Renovation of Clinic at Hayin Dogo, Jema‘a.

- Construction of Clinic at Kababana

- Purchase of Isuzu for effuse collection.

Agric Department
- Purchase of Agro-Chemicals for distribution to Farmers.

- Rehabilitation of Tractors

- Rehabilitation and improvement of animal Market at Zangon Shanu and ‗Yan Awaki

Market.

- Rehabilitation of slaughter Slab at Hayin Ojo, Jama‘a and Hayin Dogo.

- Purchase of Drugs and immunization equipment for livestock against epizootic

disease.

Work Department

- Energizing of transformer at ANg. M/Sule, Ung/Rimi New Extension Samaru,

Tsugugi.

- Completion of drainage at Basawa Central, ‗Yan Awaki and Muchia.

73

- Installation of transformer at Basawa, Zabi Ang. Yusi, Bomo, Kwangila, Kaabawa

L.G. Secretariat Yoruba Street, Koraye, Muchiya.

- Replacement of Wooden Electric Poles with Concrete poles at Jama‘a.

H/Liman

S/Dadi

Ang. Rimi

Ang. Katsinawa

D/Makwarwa

Day Samaru

Education Department

- Construction of 2 blocks of classroom at Unguwan Fulani, Shika Dam, Madarasatul

Isalm Marmara.

- Purchase of 1No. Hilux

- Vehicle at LGEA

- Purchase of 5No. Motorcycles for LGEAs

- Completion of fencing of Primary School Muchia, Kwangila, Jushi, Sakadadi

Secondary School.

74

CHAPTER FIVE

DATA PRESENTATION AND ANALYSES

5.0 Introduction

Under this chapter, the various primary and secondary data collected will be presented

and analyzed using both descriptive and inferential statistical tools. Tables and percentages

would be used to present the data while spearman‘s correlation and chi-square statistical test

will be adopted to test the hypotheses already formulated in chapter one. In the process of

testing, the study has employed Statistical Package for Social Sciences (SPSS) 16.0 and the

results are summarized in the subsequent sections of this chapter.

5.1 DETAILS OF REVENUE SOURCES OF SABON GARI LOCAL GOVERNMENT AREA OVER THE YEARS

Table 5.1: Revenues of Sabon Gari Local Government over the Years

Head Details 2007 2008 2009 2010 2011 2012 2013

1002 Rates 18,270,020 21,712,100 22,107,100 55,700,000 40,000,000 40,000,000 40,000,000

1003 Local licence, fees and fines

7,180,000 13,000,000 17480,000 21,858,301 15,000,000 15,000,000 13,900,000

1004 Earning from comm. Undertaking

30,850,000 30,430,000 49,300,000 12,610,000 5,000,000 5,000,000 35,600,000

1005 Rent on LG property 1,000,000 1,000,000 - - - - -

1006 Interest Dividend and Payment

- 15,735,000 500,000 200,000 - - 500,000

1007 Grant Reimbursement

24,000,000 24,000,000 24,000,000 36,000,000 36,000,000 36,000,000 36,000,000

1008 Miscellaneous 95,566,979 125,395,776 88,806,110 15,300,000 18,000,000 43,500,000 96,503,035

1009 Statutory Allocation 1,193,918,990 2,144,812,061 1,954,666,790 1,646,397,878 2,053,066,812

3,278,305,120 3,249,705,546

GRAND TOTAL 1770,785,969 2,376,084,837 2,156,880,000 2,163,066,179 2,220,066,812 3,470,808,158

3,522,200,767

Source: Extracted from Treasurer‘s Report, 2007 – 2013.

75

The above table shows the total revenue and details of the various revenue

sources over the years in Sabon Gari Local Government Area. The first column shows

the head code of the various revenue sources and the second column shows the details

of the various revenue sources. From the third to the ninth column, it shows the revenue

generated over the years under review. As could be seen from the table, in 2007 the

grand total revenue generated was N1,770,785,969 and increase to N2,376,084,837, in

2008, it dropped to N2,163,066,179 in 2009 and continued to rise to N2,220,066,812,

N3,470,808,158 and N3,522,200,767 in 2011, 2012 and 2013 respectively.

5.2 REVENUE ALLOCATION FOR SERVICE DELIVERY

Table 5.2: Expenditure (Service delivery) in Education, Health, Agric, and Works over the years

Sector 2007 2008 2009 2010 2011 2012 2013

Education 39,768,963 44,832,196 32,761,831 56,152,732 58,316,81 76,811,833 71,318,266

Health 36,261,968 45,311,631 33,116,11 37,000,831 33,261,881 51,831,111 70,899,631

Agric 43,216,831 40,811,167 39,831,443 36,311,396 39,211,763 48,344,333 69,381,111

Works 39,754,107 55,702,222 55,120,432 44,866,679 52,831,322 99,353,920 70,167,995

Total 159,754,107 186,677,216 160,829,817 174,331,638 183,621,777 276,341,197 281,767,003

Source: Source: Extracted from Treasurer‘s Report, 2007 – 2013.

76

The above table shows individual and total services delivered in monetary

terms from 2007 to 2013 in education, works, health and agriculture sector. In

2007, a total amount of N159,754,107 was spent while the amount increased to

N186,677,216 in 2008. The amount dropped to N160,829,817 in 2009. From

then, the amount continued to increased to N174,331,638; N183,621,777;

N276,341,197; and N281,767,003 in 2010, 2011,2012 and 2013 respectively.

Table 5.3: Total Revenue and Service Delivery over the years in Sabon Gari Local Government Area

Year Grant total % change in Grand total

Grand Expenditure

% change in Grand expenditure

2007 1,770,969 - 159,001,869 -

2008 2,376,084,837 34.2 186,677,216 17.0

2009 2,156,880,000 -9.3 160,829,817 -14.0

2010 2,163,066,179 0.3 174,331,638 9.0

2011 2,220,066,812 2.6 183,621,777 5.2

2012 3,470,808,158 56.3 276,341,197 50.8

2013 3,522,200,767 1.5 281,767,003 1.8

Source: Source: Extracted from Treasurer‘s Report, 2007 – 2013.

The above table shows an analysis of the increase/decrease on revenue

generated and the corresponding increase/decrease in service delivery. It could

be seen from the above table that 34.2% rate of increase was recorded from 2007

to 2008. Between 2008 to 2009 there was 9.3% decrease. The percentage

increased to 0.3 between 2009 and 2010 and also increased to 2.6% from 2010 to
77

2011. There was significant increase of 56.3% in revenue from 2011 to 2012.

Finally the amount increased from 2012 to 2013 by 1.5%.

On the other hand, a 17.0% increase in service delivery was recorded

from 2007 to 2008. The level of service delivery decreased by 14.0% reflecting

the decrease in revenue generated in 2009. However, the level of service

delivery increased to 9.0% from 2009 to 2010. Also an increase of 5.2% was

recorded from 2010 to 2011. Also, there was significant increase in the level of

services delivered of 50.8% from 2011 to 2012. Finally, an increase of 1.8% was

recorded from 2012 to 2013.

5.3 DETAILS OF REVENUE SORUCES OF KUDAN LOCAL GOVERNMENT AREA OVER THE YEARS

Table 5.4: Revenues of Kudan Local Government over the years Head Detail 2007 2008 2009 2010 2011
2012 2013 1001 Taxes 2,440,355 - - - - - - 1002 Rates 60,551,180 3,001,715 2,750,000 2,500,000
2,900,000 2,900,000 13,000,000 1003 Local licence, fees and fines - 3,881,115 5,712,500 4,062,300
5,467,000 14,467,000 24,042,604 1004 Earning from Comm. Undertaking 5,307,805 2,618,285
1,799,411 1,931,000 2,675,000 2,675,000 13,000,000 1005 Rent on Local Government 3,309,300
800,600 539,804 - - - - 1006 Interest on Dividend 1,096,930 500,000 500,000 500,000 - - 1,000,000 1007
Grants 500,000 10,500,000 12,000,000 12,000,000 24,000,000 24,000,000 24,000,000 1008
Miscellaneous 90,217,281 590,476,381 160,056,952 19,125,000 56,917,500 73,693,811 34,050,000
1009 Statutory Allocation 1,481,442,429 1,076,056,474 1,578,589,611 1,890,898,308 2,009,845,023
2,545,409,037 2,781,342,634 Grand Total 1,590,369,280 1,687,834,570 1,762,248,308 1,931,016,705
2,101,804,523 2,663,144,848 2,943,735,238 Source: Source: Extracted from Treasurer‘s Report, 2007 –
2013.

The above table shows total revenues of Kudan local government over the

years. The first column shows the head code of the various revenue sources of

78

revenue of Kudan Local Government Area. The second column shows the

details of various revenue sources. From third column to the ninth column, it
shows the individual and total revenues generated over the period under review.

On the total row, the data shows that a total revenue of N1,590,369,280 was

generated and the amount continued to increased to N2,687,834,570;

N1,762,248,308; N1,931,016,705; N2,101,804,523; N2,663,144,848 and

N2,943,735,238 in 2008, 2009, 2010, 2011, 2012 and 2013 respectively.

Table 5.5: Expenditure (service delivery) in Education, Health, agric & Works over the year in Kudan
Local Government Area

Sector 2007 2008 2009 2010 2011 2012 2013

Education 56,512,935 54,825,662 111,596,802 68,069,266 13,167,803 62,526,373 51,723,210

Health 58,006,821 61,383,340 12,352,051 29,688,439 101,008,093 113,542,369 105,044,434

Agric 17,821,681 16,534,940 17,003,451 19,098,012 27,689,752 14,445,809 30,477,074

Works 12,611,180 14,086,375 12,901,699 39,806,918 44,361,398 21,059,554 36,495,313

Total 144,952,617 146,830,317 153,854,003 156,662,635 186,227,046 211,579,105 223,740,030

Source: Source: Extracted from Treasurer‘s Report, 2007 – 2013.

The above table shows service delivery, in monetary term, of Kudan

Local Government Area in the area of education, health, agric and works. In

2007, a total amount of N144,952,617 was expended in service provision. The

amount continued to increase to N146,830,317; N153,854,003; N156,662,635;

N186,227,046; N211,579,105 and N223,740,030 in 2008, 2009, 2010, 2011,

2012 and 2013 respectively.

79

Table 5.6: Total Revenue and Service Delivery over the years in Kudan Local Government Area

Year Grand total % change in grand total

Grand expenditure
% change in grand expenditure

2007 1,590,369,280 - 144,952,617 -

2008 1,687,834,570 6.1 146,380,317 1.4

2009 1,762,248,308 4.4 153,854,003 4.8

2010 1,931,016,705 9.6 156,662,635 2.0

2011 2,101,804,523 8.8 186,227,046 19.2

2012 2,663,144,848 26.7 211,579,105 13.4

2013 2,943,735,238 10.5 1223,740,030 5.7

Source: Source: Extracted from Treasurer‘s Report, 2007 – 2013.

The above table shows the percentage increase in the amount of revenue

generated over the years and corresponding expenditure in Kudan Local

Government Area. From the table, 6.1% increase of revenue generated was

recorded from 2007 to 2008. Also, from 2008 to 2009 there was 4.4% increase

and the rate of increase rose to 9.6% from 2009 to 2010. From 2010 to 2011,

8.8% increase in revenue was recorded. From 2011 to 2012 as could be observed

from the table, there was 26.7% increase in revenue generated. Finally, an

increase of 10.5% was recorded from 2012 to 2013.

On the other hand, there was continuous increase in the percentage

increase in the service delivered over the years of 1.4%, 4.8%, 2.0%, 19.2%,

13.4% and 5.7% between 2007 to 2008; between 2008 to 2009; between 2009 to

2010; between 2010 to 2011; between 2011 to 2012; and between 2012 to 2013

respectively.

80

5.4 Issues on Revenue Generation and Service Delivery

Table 5.6: Returned Questionnaires

Local Government Area

Questionnaire administered Returned

Percentage of returned questionnaires

Staff Beneficiaries Staff Beneficiaries % rate of staff returned

%Beneficiaries returned

Sabon Gari 30 440 28 417 93% 95%

Kudan 20 440 18 416 90% 95%

Total 50 880 46 833

Source: Researcher‘s Survey, 2014.

The above table shows the number of questionnaires administered and the rate

of returned. The rate of return is higher in staff category which stands at 93% and 90%

for Sabon Gari and Kudan local government respectively. In the beneficiary category

rate of return is higher in Kudan than in Sabon Gari local government, the rate is 76%

and 70% respectively. The analysis of primary data is based on the returned number of

questionnaires.

RESPONSES OF LOCAL GOVERNMENT STAFF ON REVENUE GENERATION

Table 5.7: The Availability of Several Revenue Generation Sources in Sabon Gari Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 7 25

Agreed 9 33

Disagreed 4 14

Strongly disagreed 4 14

Undecided 4 14

Total 28 100

Source: Researcher‘s Survey, 2014.

81
The above table shows respondents‘ responses about the availability of

several revenue sources in Sabon Gari Local Government Area. Out of twenty

eight (28) respondents, seven (7) representing 25% strongly agreed that there

were various revenue generation sources; nine (9) equivalent to 33% agreed;

four (4) representing 14% disagreed; four (4) equivalent to 14% strongly

disagreed; and four (4) representing 14% were indecisive. From the above, it

could be realized that majority of the respondents (33%) agreed that there were

availability of several revenue generation sources in Sabon Gari Local

Government Area.

Table 5.8: the Availability of Several Revenue Generation Sources in Kudan Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 2 11

Agreed 3 17

Disagreed 10 56

Strongly disagreed 2 11

Undecided 1 5

Total 18 100

Source: Researcher‘s Survey, 2014.

The above table shows respondents‘ responses about the general

availability of revenue generation sources in Kudan Local Government Area. It

shows that out of eighteen (18) respondents, two (2) representing 11% strongly

agree that there are various revenue generation sources; three (3) equivalent to

82

17% agreed; ten (10) equivalent to 56% disagreed; two (2) representing 11%

strongly disagreed; and one (1) representing 5% was indecisive. From the above,

it could be examined that majority of the respondents, (56%) disagreed with the
assertion.

Table 5.9: Availability of Several strategies for Revenue Generation in Sabon Gari Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 5 18

Agreed 3 11

Disagreed 10 35

Strongly disagreed 4 14

Undecided 6 22

Total 28 100

Source: Researcher‘s Survey, 2014.

Respondents in Sabon Gari Local Government Area were asked to

determine whether there were several strategies for revenue generation in Sabon

Gari Local Government Area. Out of twenty eight (28) respondents, five (5)

representing 18% strongly agreed; three (3) representing 11% agreed; ten (10)

equivalent to 35% disagreed; four (4) representing 14% strongly disagreed; and

six(6) equivalent to 22% were indecisive. From the above, it could be examined

83

that, majority of the respondents (35%) disagreed that there are several strategies

for revenue generation in Sabon Gari Local Government Area.

Table 5.10: Availability of Several Strategies for Revenue Generation in Kudan Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 3 16

Agreed 1 6

Disagreed 3 17

Strongly disagreed 9 50

Undecided 2 11
Total 18 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether there were several strategies for revenue

generation in Kudan Local Government Area. Out of eighteen (18) respondents, three

(3) representing 16% agreed; three (3) equivalent to 16% disagreed; nine (9)

representing 50% strongly disagreed; and two (2) equivalent to 11% were indecisive.

From the above, it could be realized that majority of the respondents (50%) strongly

disagreed that there were several strategies for revenue generation in Kudan Local

Government Area.

84

Table 5.11: Level of Commitment for more Revenue Generation is High in Sabon Gari Local Government

Options Frequency Percentage (%)

Strongly Agreed 5 18

Agreed 2 7

Disagreed 19 68

Strongly disagreed 2 7

Undecided 0 0

Total 28 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether there was high level of commitment for more

revenue generation in Soban Gari Local Government Area. Out of twenty eight (28)

respondents, five (5) representing 18% strongly agreed; two (2) equivalent to 7%

agreed; nineteen 919) equivalent to 68% disagreed; two (2) representing 7% strongly

disagreed; and none was indecisive. From the above, it could be examined that,
majority of the respondents (68%) disagreed that there was high level of commitment

for more revenue generation in Sabon Gari Local Government Area.

Table 5.12: Level of Commitment for more Sources of Revenue is High in Kudan Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 8 44

Agreed 2 11

Disagreed 5 28

Strongly disagreed 3 17

Undecided 0 0

Total 18 100

Source: Researcher‘s Survey, 2014.

85

The above table shows respondents responses about whether there was high

level of commitment for more revenue generation sources in Kudan Local Government

Area. Out of eighteen (18) respondents, eight (8) representing 44% strongly agreed;

two (2) equivalent to 11% agreed; five (5) representing 28% disagreed; and three (3)

equivalent 17% strongly disagreed. From the above, it could be realized that majority

of the respondents, (44%) strongly agreed that the level of commitment by Kudan local

government toward more sources of revenue was high.

Table 5.13: Attitude of Tax Payers is Essentially Cooperative in Sabon Gari Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 0 0

Agreed 5 18

Disagreed 13 46

Strongly disagreed 10 36

Undecided 0 0
Total 28 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether taxpayers‘ attitudes towards tax payment was

essentially cooperative in Sabon Gari Local Government Area. Out of twenty eight (28)

respondents, five (5) representing 18% agreed; thirteen (13) equivalent to 46%

disagreed; and ten (10) representing 36% strongly disagreed. From the above, it could

be realized that majority of the respondents (46%) disagreed.

86

Table 5.14: Attitude of Taxpayers is Essential Cooperative in Kudan Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 2 11

Agreed 3 17

Disagreed 7 39

Strongly disagreed 6 33

Undecided 0 0

Total 18 100

Source: Researcher‘s Survey, 2014.

The above table shows respondents responses about whether the attitudes

of tax payers is essentially cooperative in Kudan Local Government Area. Out of

eighteen (18) respondents, two (2) representing 11% strongly greed; three (3)

equivalent to 17% agreed; seven (7) representing 39% disagreed; and six (6)

equivalent to 33% strongly disagreed. From the above, it could be examined that

majority of the respondents (39%) disagreed that the attitudes of taxpayers were

essentially corporative in Kudan Local Government Area. This view, agreed

with the responses of interviewees with tax payers, the tax payers opined that

they are not will to pay tax because the local government is not providing them

with basic infrastructure like health facilities, drainages, educational facilities,

market stalls, slaughter houses, and other service for agricultural development.

87

Table 5.15: Sabon Gari Local Government Revenue Generation Effort is Essentially Satisfactory

Options Frequency Percentage (%)

Strongly Agreed 5 18

Agreed 3 11

Disagreed 17 60

Strongly disagreed 3 11

Undecided 0 0

Total 28 100

Source: Researcher‘s Survey, 2014.

The above table shows respondents responses about whether the local

government revenue generation effort was satisfactory in Sabon Gari Local

Government Area. Out of twenty eight (28) respondents, five (5) representing

18% strongly agreed; three (3) equivalent to 11% strongly disagreed 60%

disagreed; and three (3) equivalent to 11% strongly disagreed. Form the above, it

could be realized that majority of the respondents, (60%) disagreed that the local

government revenue generation effort in Sabon Gari Local Government Area is

satisfactory.
88

Table 5.16: Kudan Local government Revenue Generation effort is Essentially Satisfactory

Options Frequency Percentage (%)

Strongly Agreed 1 6

Agreed 3 17

Disagreed 5 27

Strongly disagreed 9 50

Undecided 0 0

Total 18 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether revenue generation efforts by Kudan

local government was essentially satisfactory. Out of eighteen (18) respondents,

one (1) representing 6% strongly agreed; three (3) equivalent to 17% agreed;

five (5) equivalent to 27%) disagreed; and nine (9) representing 50% strongly

disagreed. From the above, it could be examined that, majority of the

respondents (50%) strongly disagreed with the assertion that Kudan local

government revenue generation efforts were essentially satisfactory.

89
Table 5.17: Sabon Gari Local Government Funding on Community Development is Sufficient

Options Frequency Percentage (%)

Strongly Agreed 3 11

Agreed 22 78

Disagreed 0 0

Strongly disagreed 3 11

Undecided 0 0

Total 28 100

Source: Researcher‘s Survey, 2014.

The above table shows respondents‘ responses about whether funding on

community development is sufficient in Sabon Gari Local Government Area. Out of

twenty eight (28%) respondents, three (3) representing 11% strongly agreed; twenty

two (22) equivalent to (78%) agreed; and three representing 11% strongly disagreed.

From the above, it could be realized that majority of the respondents (78%) agreed

local government funding on community development was sufficient in Sabon Gari

local government.

Table 5.18: Kudan Local Government Funding on Community Development is Sufficient

Options Frequency Percentage (%)

Strongly Agreed 2 11

Agreed 3 17

Disagreed 8 44

Strongly disagreed 3 17

Undecided 2 11

Total 18 100

Source: Researcher‘s Survey, 2014.

90
Respondents were asked whether funding on community development was

sufficient in Kudan Local Government Area. Out of eighteen (18) respondents, two (2)

representing 11% strongly agreed; three (3) equivalent to 17% agreed; eight (8)

representing 44% disagreed; three (3) representing 17% strongly disagreed; and two (2)

equivalent to 11% were indecisive. From the above, it could be examined that majority

of the respondents 44% disagreed with the assertion funding in community

development was sufficient in Kudan Local Government Area.

Table 5.19: Revenue Collectors Remit High Amount into Sabon Gari Local Account

Options Frequency Percentage (%)

Strongly Agreed 2 7

Agreed 2 7

Disagreed 19 68

Strongly disagreed 5 18

Undecided 0 14

Total 28 100

Source: Researcher‘s Survey, 2014.

The above table shows respondents‘ responses about whether revenue collectors

remit high amount into Sabon Gari Local government account. Out of twenty eight (28)

respondents, two (2) representing 7% strongly agreed two (2) equivalent to 7% agreed;

nineteen (19) representing 68% disagreed; and five (5) representing 18% strongly

disagreed. From the above, it could be realized that majority of the respondents (68%)

disagreed with the assertion revenue collectors remitted higher amount into Sabon Gari

local government account.

91

Table 5.20: Revenue collectors Remit High Amount into Kudan Local Government
Options Frequency Percentage (%)

Strongly Agreed 2 11

Agreed 9 50

Disagreed 3 17

Strongly disagreed 2 11

Undecided 2 11

Total 18 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether revenue collectors remit high amount in

Kudan local government account. Out of eighteen (18) respondents, two (2)

representing 11% strongly agreed; nine (9) equivalent to 50% agreed; three (3)

representing 17% disagreed; two (2) equivalent to 11% strongly disagreed; and two (2)

representing 11% were indecisive. From the above, it could be realized that majority of

the respondents (50%) agreed that revenue collectors remitted high amount into Kudan

local government account.

Table 5.21: Revenues Generated in Sabon Gari Local Government Area are properly Utilized

Options Frequency Percentage (%)

Strongly Agreed 5 18

Agreed 8 29

Disagreed 14 50

Strongly disagreed 1 3

Undecided 0 0

Total 28 100

Source: Researcher‘s Survey, 2014.

92

Respondents were asked to determine whether revenues generated from Sabon

Gari Local Government Area are properly utilized. Out of twenty eight (28)

respondents, five (5) representing 18% strongly agreed; eight (8) equivalent to 29%

agreed. Fourteen (14) representing 50% disagreed; and one (1) equivalent to 3%

strongly disagreed. From the above, it could be realized that, majority of the

respondents, (50%) disagreed with the assertion that revenues generated from Sabon

Gari Local Government Area are properly utilized.

Table 5.22: Revenues Generated in Kudan Local Government are Properly Utilized

Options Frequency Percentage (%)

Strongly Agreed 1 6

Agreed 2 11

Disagreed 8 44

Strongly disagreed 4 22

Undecided 3 17

Total 18 100

Source: Researcher‘s Survey, 2014.

The above table shows respondents‘ responses about whether revenues

generated from Kudan Local Government Area are properly utilized. Out of eighteen

(18) respondents, one (1) representing 6% strongly agreed; two (2) equivalent to 11%

agreed; eight (8) representing 44% disagreed; four (4) equivalent to 22% strongly

disagreed; and three (3) representing 17% were indecisive. From the above, it could be

realized that, majority of the respondents disagreed with the assertion that revenues

generated from Sabon Gari Local Government Area are properly utilized.

93

Table 5.23: Sabon Gari Local government Performs its Primary Responsibilities Effectively in some Areas

Options Frequency Percentage (%)

Strongly Agreed 7 25
Agreed 12 43

Disagreed 5 18

Strongly disagreed 4 14

Undecided 0 0

Total 28 100

Source: Researcher‘s Survey, 2014.

The above table shows respondents‘ responses about whether Sabon Gari local

government performs its primary responsibility effectively in some key areas. Out of

twenty eight (28) respondents, seven (7) representing 25% strongly agreed; twelve (12)

equivalent to 42% agreed; five (5) representing 18% disagreed; and four (4) equivalent

to 14% strongly disagreed. From the above, it could be realized that majority of the

respondents (43%) agreed that, Sabon Gari Local government performs its primary

responsibilities effectively in some key areas.

Table 5.24: Kudan Local Government Performs its Primary responsibilities Effectively in Some Areas

Options Frequency Percentage (%)

Strongly Agreed 3 17

Agreed 4 22

Disagreed 8 44

Strongly disagreed 3 17

Undecided 0 0

Total 18 100

Source: Researcher‘s Survey, 2014.

94

The above table shows respondents‘ responses about whether Kudan Local

Government performs its primary responsibilities effectively in some key areas. Out of

eighteen (18) respondents, three (3) representing 17% strongly agreed; four (4)
equivalent to 22% agreed; eight (8) representing 44% disagreed; and three (3)

equivalent to 17% strongly disagreed. From the above, it could be realized that,

majority of the respondents, (44%) disagreed that Kudan local government performs its

primary responsibilities in some key areas.

Table 5.25: Frequency of Sending Treasury Staff for Training in Sabon Gari Local Government

Options Frequency Percentage (%)

Very often 10 36

Often 13 46

Not often 5 18

Total 28 100

Source: Researcher‘s Survey, 2014.

Respondents were asked to determine the frequency of sending treasury staff for

training in Sabon Gari local government. Out of twenty eight (28) respondents, ten (10)

representing 35% said it was very often; thirteen (13) representing 46% said it was

often; and five (5) equivalent to 18% said it was not often. From the above, it could be

realized that majority of the respondents (46%) agreed that staff are often sent for

training in Sabon Gari Local Government.

95

Table 5.26: Frequency of Sending Staff for Training in Kudan Local Government

Options Frequency Percentage (%)

Very often 3 16

Often 5 28

Not often 10 56

Total 18 100
Source: Researcher‘s Survey, 2014.

Respondents were asked to determine the frequency of sending staff for training

in Kudan local government. Out of eighteen (18) respondents, three (3) representing

16% said it was very often; five (5) representing 28% said it was often; and ten (10)

equivalent to 56% said it was not often. From the above, it could be realized that

majority of the respondents (56%) said staff are not often sent for training in Kudan

local government.

Table 5.27: Strategies that would lead to Higher Revenue in Sabon Gari Local government

Options Frequ ency

Percentage (%)

Through the use of local government tax collectors

3 11

Through the use of traditional authorities 3 11

Through the use of taskforce 7 25

Through enlightenment campaign 13 46

Through contracting out to contractors 2 7

Total 28 100

Source: Researcher‘s Survey, 2014.

96

Respondents were asked to determine through which strategy higher revenues

would be ensured in Sabon Gari local government. Out of twenty eight (28) tax

collectors; three (3) equivalent to 11% said through the use of local government tax

collectors; three (3) equivalent to 11% said through the use of traditional authorities;

seven (7) representing 25% said through the use of taskforce; thirteen (13) equivalent to

46% said through enlightenment campaign; and two (2) representing 7% said through

contracting out to contractors. From the above, it could be realized that majority of the
respondents (46%) advocated that use of public enlightenment campaign for ensuring

high revenue generation in Sabon Gari local government.

Table 5.28: Strategies that would lead to Higher Revenue in Kudan Local Government

Options Frequency Percentage (%)

Through the use of local government tax collectors

5 28

Through the use of traditional authorities

10 56

Through the use of taskforce 2 11

Through enlightenment campaign 1 5

Through contracting out to contractors

00

Total 18 100

Source: Researcher‘s Survey, 2014.

Respondents were asked to determine through which strategy that higher

revenues would be ensured in Kudan local government. Out of eighteen (18)

respondents, five() representing 28% said through the use of local government tax

collectors; ten(10) equivalent to 56% said through the use of traditional authorities, two

(2) representing 11% said through the use of taskforce and one equivalent to 5% said

97

through public enlightenment campaign. From the above, it could be realized that

majority of the respondents (56%) said higher revenues could be generated through the

use of traditional authorities in Kudan Local Government Area.

Table 5.29: Execution of Projects by Sabon Gari Local Government brings About Meaningful
Development

Options Frequency Percentage (%)

Strongly Agreed 2 7

Agreed 15 54

Disagreed 6 21

Strongly disagreed 5 18

Undecided 0 0

Total 28 100

Source: Researcher‘s Survey, 2014.

The above table shows respondents responses about whether execution of

projects by Sabon Gari local government can bring about meaningful development. Out

of twenty eight (28) respondents, two (2) representing 7% strongly agreed; fifteen (15)

equivalent to 54% agreed; six (6) representing 21% disagreed; and five(5) representing

18% strongly disagreed. From the above, it could be realized that majority of the

respondents. (54%) agreed that execution of project could bring about meaningful

development in Sabon Gari Local Government Area.

98

Table 5.30: Execution of Projects by Kudan Local Government brings about Meaningful Development

Options Frequency Percentage (%)

Strongly Agreed 1 6

Agreed 8 44

Disagreed 3 17

Strongly disagreed 4 22

Undecided 2 11

Total 18 100
Source: Researcher‘s Survey, 2014.

The above table shows respondents responses about whether execution of

projects by Kudan local government can bring about meaningful development. out of

eighteen (18) respondents, one (1) representing 6% strongly agreed; eight (8)

representing 44% agreed; three (3) equivalent to 17% disagreed; four (4) representing

22% strongly disagreed; and two (2) equivalent to 11% were indecisive. From the

above, it could be realized that majority of the respondents (44%) agreed that execution

of projects could bring about meaningful development in Kudan Local Government

Area.

Table 5.31: Development Projects Executed in Sabon Gari Local Government Reflect Revenues
Generated

Options Frequency Percentage (%)

Strongly Agreed 6 22

Agreed 13 46

Disagreed 4 14

Strongly disagreed 3 11

Undecided 2 7

Total 28 100

99

Source: Researcher‘s Survey, 2014.

Respondents were asked whether execution of projects in Sabon Gari Local

Government Area reflected revenue generated. Out of twenty eight (28) respondents,

six(6) representing 22% strongly agreed; thirteen (13) equivalent to 46% agreed; four

(4) representing 14% disagreed; three (3) equivalent to 11% strongly disagreed; and

two (2) representing 7% were indecisive. From the above, it could be realized that

majority of the respondents (46) agreed that development projects executed in Sabon
Gari Local Government Area reflected revenue generated.

Table 5.32: Development Projects Executed in Kudan Local Government Reflect Revenues Generated

Options Frequency Percentage (%)

Strongly Agreed 2 11

Agreed 3 17

Disagreed 8 44

Strongly disagreed 4 22

Undecided 1 5

Total 18 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether development projects executed in Kudan

Local government reflected revenue generated. Out of eighteen (18) respondents two

(2) representing 11% strongly agreed; three (3) equivalent to (17%) agreed; eight (8)

representing 44% disagreed; four (4) equivalent to 22% strongly disagreed and one (1)

representing 6% was indecisive. From the above, it could be realized that majority of

100

the respondents 44% disagreed that development projects executed in Kudan local

government is a reflection of revenue generated.

Table 5.33: The Impact of Community Development Project is Positive on the Living Standard of the
People in Sabon Gari Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 2 7

Agreed 20 71

Disagreed 4 14

Strongly disagreed 2 8
Undecided 0 0

Total 28 100

Source: Researcher‘s Survey, 2014.

The above table shows the impact of community development projects on the

living standard of the people in Sabon Gari Local Government Area. Out of twenty (28)

respondents, two (2) representing 7% strongly agreed; twenty (20) equivalent to 71%

agreed; four (4) representing 14% disagreed; and two (2) equivalent to 8% strongly

disagreed. From the above, it could be realized that majority of the respondents (71%)

agreed that community development project had positive impact on the living standard

of the people in Sabon Gari Local Government Area.

101

Table 5.34: The Impact of Community Development Project is Positive on the Living Standard of the
People in Kudan Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 4 22

Agreed 4 22

Disagreed 8 45

Strongly disagreed 2 11

Undecided 0 0

Total 18 100

Source: Researcher‘s Survey, 2014.

The above table shows the impact of community development project on the
living standard of the people in Kudan Local Government Area. Out of eighteen (18)

respondents, four (4) representing 22% strongly agreed; four (4) equivalent to 22%

agreed; eight (8) representing 45% disagreed and two (2) representing 11% strongly

disagreed. From the above, it could be realized that majority of the respondents. (45%)

disagreed that community development project positively impacted on the living

standard of the people in Kudan Local Government Area.

Table 5.35: The Level of Local Government Programmed on Community Development is High in Sabon
Gari Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 7 25

Agreed 19 68

Disagreed 2 7

Strongly disagreed 0 0

Undecided 0 0

Total 28 100

Source: Researcher‘s Survey, 2014.

102

Respondents were asked whether the level of local government programme on

community development was high in Sabon Gari Local Government Area. Out of

twenty eight (28) respondents, seven (7) representing 25% strongly agreed; nineteen

(19) representing 68% agreed; and two (2) equivalent to 7% disagreed. From the above,

it could be found out that, majority of the respondents (68%) agreed that the level of

local government programme on community development was high in Sabon Gari

Local Government Area.

Table 5.36: The Level of Local Government Programmed on Community Development is High in Kudan
Local Government
Options Frequency Percentage (%)

Strongly Agreed 3 17

Agreed 4 22

Disagreed 8 44

Strongly disagreed 3 17

Undecided 0 0

Total 18 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether the level of local government programme on

community development was high in Kudan local government. Out of eighteen (18)

respondents four (4) representing 17% strongly agreed; four (4) equivalent to 22%

agreed; eight (8) equivalent to 44% disagreed; and three (3) representing 17% strongly

disagreed. From the above, it could be realized that majority of the respondents (44%)

disagreed that the level of local government programme on community development

was high in Kudan Local Government Area.

103

Table 5.37: Factors Responsible for Underutilization of Promoting SocioEconomic Development in Sabon
Gari Local Government Area

Options Frequency Percentage (%)

Lack of skill manpower 2 7

Financial constraints 14 50

Corruption 10 36

Interference by the state government

27

Total 28 100

Source: Researcher‘s Survey, 2014.

Respondents were asked to choose the factors responsible for underutilization

of promoting socio-economic development in Sabon Gari Local Government Area. Out

of twenty eight (28) respondents, two (2) representing 7% said lack of skilled

manpower; fourteen (14) representing 50% due to financial constraints; ten (10)

representing 36% said to due corruption; and two (2) representing 7% said due to

interference by the state government. From the above, it could be realized that majority

of the respondents (50%) attributed the underutilization of promoting socioeconomic

development in Sabon Gari local government are to fiscal constraints.

Table 5.38: Factors Responsible for underutilization of Promoting socio-economic Development in Kudan
Local Government Area

Options Frequency Percentage (%)

Lack of skilled manpower 0 0

Financial constraints 7 39

Corruption 8 44

Interference by the state government

3 17

Total 18 100

Source: Researcher‘s Survey, 2014.

104

Respondents were asked to choose the factors responsible for underutilization

of promoting socio-economic development in Kudan Local Government Area. Out of

eighteen (18) respondents; seven (7) representing 39% said financial constraints; eight

(8) representing 44% said corruption; and three (3) equivalent to 17% said undue

interference by the state government. From the above, it could be realized that majority

of the respondents (44%) attributed this underutilization to corruption.

RESPONSES OF BENEFICIARIES ON SERVICE DELIVERY

Table 4.39: Sabon Gari Local Government Assist in Irrigation Farming

Options Frequency Percentage (%)

Strongly Agreed 81 19

Agreed 186 44

Disagreed 84 20

Strongly disagreed 60 14

Undecided 6 3

Total 417 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether Sabon Gari Local government assisted them

in irrigation farming. Out of 417 respondents, 81 representing 19% strongly agreed;

186 equivalent to 44% agreed; 84 equivalent to 20% disagreed; 60 representing 14%

strongly disagreed, 6 representing 3% were indecisive. From the above, it could be

realized that majority of the respondents 44% agreed that Sabon Gari Local

Government assisted them in irrigation farming.

105

Table 5.40: Kudan Local Government Assists in Irrigation Farming

Options Frequency Percentage (%)

Strongly Agreed 196 47

Agreed 104 25

Disagreed 72 17

Strongly disagreed 32 8

Undecided 12 3

Total 416 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether Kudan Local Government assisted them in

irrigation farming. Out of 416 respondents, 47 representing 47% strongly agreed; 104

equivalent to 25% agreed; 72 representing 17% disagreed; 32 representing 8% strongly

disagreed; and 12 representing 3% were indecisive. From the above, it could be

realized that, majority of the respondents, (47%) strongly agreed that Kudan Local

Government assisted in irrigation farming.

Table 5.41: Adequacy of Subsidy on Fertilizer in Sabon Gari Local Government

Options Frequency Percentage (%)

Strongly Agreed 54 13

Agreed 78 19

Disagreed 252 60

Strongly disagreed 27 6

Undecided 6 2

Total 417 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether fertilizer subsidy was adequate in Sabon Gari

local government. Out of 417 respondents, 54 representing 13% strongly agreed that

106

subsidy on fertilizer was adequate; 78 representing 19% agreed; 252 equivalent to 60%

disagreed; 27 representing 6% strongly disagreed; and 6equivalent to 2% were

indecisive. From the above, it could be realized that majority of the respondents. (60%)

disagreed that fertilizer subsidy was adequate in Sabon Gari local government. This has

agreed with the opinion of respondents with respect of interview conducted. It was

opined that the local governments are subsidy on fertilizer is inadequate because people

who have access to the government fertilizer nearly buy it at a market price.

Table 5.42: Adequacy of Subsidy on Fertilizer in Kudan Local Government

Options Frequency Percentage (%)

Strongly Agreed 148 36

Agreed 172 41

Disagreed 80 19

Strongly disagreed 16 4

Undecided 0 0

Total 416 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether fertilizer subsidy was adequate in Kudan local

government. Out of 416 respondents, 148 representing 36% strongly agreed; 172

equivalent to 41% agreed; 80 representing 19% disagreed; and 16 representing 4%

strongly disagreed. From the above, it could be realized that majority of the

respondents, (41%) agreed that the subsidy or fertilizer in Kudan local government was

adequate.

107

Table 4.43: Effectiveness of Hiring Scheme of farm Implements in Sabon Gari Local Government

Options Frequency Percentage (%)

Strongly Agreed 78 19

Agreed 35 11

Disagreed 228 55

Strongly disagreed 30 7

Undecided 36 8

Total 417 100

Source: Researcher‘s Survey, 2014.

The above table shows the effectiveness of hiring scheme of farm implements in

Sabon Gari Local Government Area. Out of 417 respondents, 78 representing 19%

strongly agreed that the scheme was effective; 35 equivalent to 11% agreed; 228

representing 55% disagreed; 30 equivalent to 7% strongly disagreed and 36 equivalent

to 8% were indecisive. From the above, it could be realized that, majority of the

respondents, (55%) disagreed that the scheme was effective.

Table 5.44: Effectiveness of Hiring Scheme of Farm Implements in Kudan Local Government

Options Frequency Percentage (%)

Strongly Agreed 72 17

Agreed 288 69

Disagreed 48 12

Strongly disagreed 8 2

Undecided 0 0

Total 416 100

Source: Researcher‘s Survey, 2014.

108

The above table shows respondents responses about the effectiveness of hiring

scheme of farm implements in Kudan Local Government Area. Out of 416 respondents,

72 representing 17% strongly agreed; 288 equivalent to 69% agreed; 48 equivalent to

12% disagreed; and 8 representing 2% strongly disagreed. From the above, it could be

realized that majority of the respondents 69% agreed that the hiring scheme of farm

implements in Kudan Local Government Area was effective.

Table 5.45: Availability of Immunization Exercise in Sabon Gari Local Government

Options Frequency Percentage (%)

Strongly Agreed 126 30

Agreed 249 59
Disagreed 30 7

Strongly disagreed 6 2

Undecided 6 2

Total 417 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether there was immunization exercise in their

Local Government Area. Out of 417 respondents, 126 representing 30% strongly

agreed that there was immunization exercise; 249 representing 59% disagree; 30

equivalent to 7% disagreed; 6 representing 2% strongly disagreed; and 6 (2) equivalent

to 2% were indecisive. Form the above, it could be realized that majority of the

respondents (59%) agreed that there as immunization exercise in Sabon Gari Local

Government Area.

109

Table 5.46: Availability of Immunization Exercise in Kudan Local Government

Options Frequency Percentage (%)

Strongly Agreed 52 13

Agreed 208 50

Disagreed 72 17

Strongly disagreed 80 19

Undecided 4 1

Total 416 100

Source: Researcher‘s Survey, 2014.

Respondents were asked whether there was immunization exercise in their

Local Government Area. Out of 416 respondents, 52 representing 13% strongly agreed;
208 equivalent to 50% agreed; 72 representing 17% disagreed, 80 equivalent to 19%

strongly disagreed; and 4 representing 1% was indecisive. From the above, it could be

realized that majority of the respondents (52%) strongly agreed that immunization

exercise was available in Kudan Local Government Area.

Table 5.47: Sabon Gari Local Government Provides Good Refuse Collection System

Options Frequency Percentage (%)

Strongly Agreed 54 13

Agreed 78 19

Disagreed 147 35

Strongly disagreed 63 15

Undecided 75 18

Total 417 100

Source: Researcher‘s Survey, 2014.

110

The above table shows respondents‘ responses about whether their local

government provides good refuse collection system. Out of 417 respondents, 54

representing 13% strongly agreed; 78 equivalent to 19% agreed; 147 representing 35%

disagreed; 63 representing 15% strongly disagreed and 75 equivalent to 18% were

indecisive. From these, it could be realized that majority of the respondents (35%)

disagreed that Sabon Gari local government provides good refuse collection system.

Table 5.48: Kudan Local Government provides Good Refuse Collection System

Options Frequency Percentage (%)

Strongly Agreed 84 20

Agreed 208 50

Disagreed 44 11

Strongly disagreed 60 14
Undecided 20 5

Total 416 100

Source: Researcher‘s Survey, 2014.

The above table shows respondents‘ responses about whether their local

government provides a good refuse collection system. Out of 416 respondents, 84

representing 20% strongly agreed; 208 equivalent to 50% agreed; 44 representing 11%

disagreed; 60 equivalent to 14% strongly disagreed and 20 representing 5% were

indecisive. Form the above, it could be realized that majority of the respondents 50%

agreed that Kudan Local Government provides a good refuse collection system. The

opinion of the interviewees agreed with the majority view that many said that many

people dump their refuse on the waterways, their backyards because there are no

111

collection centres provided by the local government. Those that put at the backyard

used it as a manure in their farms.

Table 5.49: The Rate of Performance of Clinics in Sabon Gari Local Government Area

Options Frequency Percentage (%)

Highly Effective 54 13

Effective 114 27

Ineffective 219 53

Highly Ineffective 30 7

Total 417 100

Source: Researcher‘s Survey, 2014.

The above table shows the rate of performance of clinics in Sabon Gari Local

Government Area. Out of one hundred and thirty nine 417 respondents, 54 representing

13% said the performance was highly effective; 144 representing 27% said it was

effective; 219 representing 53% said it was ineffective; and 30 equivalent to 7% said it
was highly ineffective. From the above, it could be realized that majority of the

respondents (53%) attested that the clinics performed ineffectively.

Table 5.50: The Rate of Performance of Clinics in Kudan Local Government Area

Options Frequency Percentage (%)

Highly Effective 8 2

Effective 104 25

Ineffective 108 26

Highly Ineffective 196 47

112

Total 416 100

Source: Researcher‘s Survey, 2014.

Respondents were asked to rate the performance of clinics in their Local

Government Area and their responses is presented in the table above. Out of 416

respondents, 8 representing 2% said they were highly effective; 104 representing 25%

said it was effective; 108 equivalence to 26% said it was ineffective; and

196representing 47% said it was highly ineffective. From the above, it could be

realized that majority of the respondents (47%) stated that the clinics in Kudan Local

Government were highly ineffective.

Table 5.51: The Standard of Primary Schools in Sabon Gari Local Government Area

Options Frequency Percentage (%)

Highly Standard 42 10

Standard 60 14

Not standard 315 76

Total 417 100

Source: Researcher‘s Survey, 2014.

Respondents were asked to rate the standard of primary schools in Sabon Gari
Local Government Area. Out of 417 respondents, 42 representing 10% said they were

highly standard; 60 equivalent to 14% said they were standard; and 315 representing

76% said they were not standard. From the above, it could be realized that, majority of

the respondents (76%) said that the primary schools in Sabon Gari local government

were not standard.

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Table 5.52: The Standard of Primary Schools in Kudan Local Government Area

Options Frequency Percentage (%)

Highly Standard 80 19

Standard 104 25

Not Standard 232 56

Total 416 100

Source: Researcher‘s Survey, 2014.

Respondents in Kudan showed that 80 representing 19% said the primary

schools were highly standard; 104 representing 25% said they were standard; and 232

equivalent to 56% said they were not standard. From the above, it could be realized that

majority of the respondents said that the primary schools in Kudan local government

were not up to standard.

Table 5.53: Adequate Drainage System in Sabon Gari Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 84 20

Agreed 96 23

Disagreed 234 56

Strongly disagreed 3 1

Undecided 0 0

Total 417 100

Source: Researcher‘s Survey, 2014.

The above table showed respondents responses about the adequacy of drainage

in Sabon Gari Local government. Out of 417 respondents, 84 representing 20%

114

strongly agreed that drainages were adequate; 96 equivalent to 23% agreed; 234

representing 56% disagreed; 3 representing 1% strongly disagreed. From the above, it

could be realized that, majority of the respondents, 56% disagreed that the drainages in

Sabon Gari Local Government Area were adequate.

Table 5.54: Adequate Drainage System in Kudan Local Government Area

Options Frequency Percentage (%)

Strongly Agreed 112 26

Agreed 44 11

Disagreed 228 55

Strongly disagreed 24 6

Undecided 8 2

Total 416 100

Source: Researcher‘s Survey, 2014.

The above table shows respondents responses about the adequacy of drainages

in Kudan Local Government Area. Out of 416 respondents, 112 representing 26%

strongly agreed. 44 representing 11% agreed; 228 equivalent to 55% disagreed; 24

representing 6% strongly disagreed and 8 representing 2% were indecisive. Form the

above, it could be realized that majority of the respondents (55%) disagreed that the

drainages in Kudan Local Government Area were adequate.

5.5 Test of Hypotheses

Here, the hypotheses already formulated would be tested at this juncture.

5.5.1 Test of Hypothesis (I)

Decision Rule: We will accept the above null (H0) hypothesis if the chi-square (x2)

calculated is less than chi-square (x2) tabulated (critical). We will reject the null

115

hypothesis (H0) if chi-square (x2) is calculated greater than chi-square (x2)

tabulated (critical).

H0: Proper utilisation of local government revenue in Sabon Gari does not affect the

performance of local government in promoting development

Table 5.55 Chi-Square Tests

Value Df

Asymp. Sig. (2-sided) Pearson Chi-Square 56.615a 4 .000 Likelihood Ratio 43.249 4 .000 Linear-by-Linear
Association 4.271 1 .039 N of Valid Cases 28 a. 24 cells (96.0%) have expected count less than 5. The
minimum expected count is .07.

H0: Proper utilisation of local government revenue in Kudan does not affect the

performance of local government in promoting development

Table 4.56: Chi-Square Tests

Value Df
Asymp. Sig. (2-sided) Pearson Chi-Square 30.375a 4 .016 Likelihood Ratio 29.193 4 .023 Linear-by-Linear
Association 13.480 1 .000 N of Valid Cases 18 a. 25 cells (100.0%) have expected count less than 5. The
minimum expected count is .06.

Using SPSS 16.0 the x2 calculated is 56.615 in Sabon Gari Local Government

as shown in the above table 5.55 while x2 critical at 4 Degree of Freedom is 2.20.

Therefore, x2 calculated 56.615 is greater than x2 critical 2.20. Thus, we reject the null

(H0) hypothesis.

116

On that ground we will vividly state that proper utilisation of local government

revenue positively affects the performance of local government in promoting

development in Sabon Gari local government.

On the other hand, the x2 calculated is 30.375 in Kudan Local Government as

shown in the above table 5.56 while x2 critical at 4 Degree of Freedom is 2.20.

Therefore, x2 calculated 30.375 is greater than x2 critical 2.20. Thus, we reject the null

(H0) hypothesis.

On that ground we will vividly state that proper utilisation of local government

revenue positively affects the performance of local government in promoting

development in Kudan local government.

5.5.2 Test of Hypothesis (II)

H0: There is significant correlation between amount of revenue generated and level

of service delivery in Kudan and SabonGari local government.

For the purpose of our analyses, we need to make a comparative analysis of the

two local governments in question. Therefore, we are going to test the hypothesis on

each of the Local Government Areas.

5.2.2.1 Correlation Test between Revenue Generation and Service Delivery in Sabon Gari Local
Government Area

Table 5.35: Percentage changes in Revenue and Corresponding percentage in Service Delivery in Sabon
Gari Local Government Area

Year % change in Revenue % change in service delivery 2007 - - 2008 34.2 17.0 2009 -9.3 -14.0 2010
0.3 9.0 2011 2.6 5.2 2012 56.3 50.8 2013 1.5 1.8 Source: computed from Revenue and services over the
year

117

Correlations Service Delivery (dependent var.)

revenue (independent var.)

Service delivery (dependent var.)

Pearson Correlation

1 .94

Sig. (2-tailed) .469 N 6 6

revenue (independent var.)

Pearson Correlation

.94 1

Sig. (2-tailed) .469 N 6 6

The results of the correlation test of Sabon Gari Local Government Area reveal,
as show above, that there is a positive relationship between revenue generation and

service delivery. Then strength of the relationship is 94%.

Table 5.36: Percentage change in Revenue and Corresponding Percentage in Service Delivery in Kudan
Local Government Area Year % change in Revenue % change in service delivery 2007 - - 2008 6.1 1.4
2009 4.4 4.8 2010 9.6 2.0 2011 8.8 19.2 2012 26.7 13.4 2013 10.5 5.7 Source: computed from Revenue
and services over the year

118

Correlations Service delivery (dependent var.)

revenue (independent var.)

Service delivery (dependent var.)

Pearson Correlation 1 .48 Sig. (1-tailed) .480 Sum of Squares and Cross-products 7.946E16 -6.575E15
Covariance 1.589E16 -1.315E15 Nigeria 6 6

revenue (independent var.)

Pearson Correlation .48 1 Sig. (1-tailed) .480 Sum of Squares and Cross-products -6.575E15 7.324E17
Covariance -1.315E15 1.465E17 Nigeria 6 6

The results of the correlation test of Kudan Local Government Area, as shown

above in table 5.36, that there is a positive relationship between revenue generation and

service delivery. Then strength of the relationship is 48%.

5.6 Major Findings

After various data were collected, presented and analysed, the following

findings were reached;

It was found that in the two Local Government Areas, the IGR was very low

compared to the external source. This has affected the level of revenue generation and

service delivery.

That effective management of local government revenue positively impacts on

the effort of local government in promoting development. This is evidenced in the level

of allocation given to capital expenditure that is meant for service delivery.

119

Generally there is a positive correlation between the amount of revenue

generated and the level of service delivery in Sabon Gari and Kudan Local Government

Areas.

In comparative terms, the correlation coefficient of revenue generation and

service delivery was stronger in Sabon Gari Local Government Area (94%) than in

Kudan Local Government Area (48%).

Public enlightenment campaign was the most effective way of encouraging tax

payers to pay tax in order to generate more revenue to deliver more services.

The result of the analysis also shows that the larger percentage of the revenue

received by the two local governments were in favour of recurrent expenditure. And

living smaller percentage to service delivery (capital spending).

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CHAPTER SIX

SUMMARY, CONCLUSION AND RECOMMENDATIONS

6.0 INTRODUCTION

This chapter discusses the summary, conclusion and the necessary

recommendations.

6.1 SUMMARY

This research is conducted to examine the impact of revenue generation on

service delivery. The research is divided into six main chapters. Chapter one is

apparently introductory in nature which provides the basis upon which the whole

research is carried out. The chapter includes, among others, the background to the

study, statement of the problem, hypotheses, research question, objectives of the study

and significant of the study. Chapter two reviews the various literature relevant to the

study in terms of conceptual issues, theoretical issues and empirical studies and the

theoretical framework of fiscal decentralization was adopted as the foundation upon

which the study was based. Chapter three deals with the methodology of the study

whereby the various research design and methods of data collection were discussed.

Not only that, the methods of data analysis and population, sample size and sampling

techniques were also highlighted. Chapter four presented the historical background,

development and the economies of the two local governments under our case studies.

However, the organisational structure and operational pattern of the two local

governments question were also discussed. Chapter five was on data presentation and

analyses whereby all the data collected from the survey and that obtained from the

secondary sources were summarised, organised, presented and analysed using both

descriptive and statistical tools. All the hypotheses formulated were tested under this

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chapter. Chapter five which was the concluding chapter dealt with summary,

conclusion and recommendations. The chapter summarised the whole work and
conclusions were drawn while recommendations were made on how to improve local

government revenue generation in order to provide more services.

6.2 CONCLUSION

Based on the data collected, presented and analysed and the result of statistical

tests, the following conclusions are discernable:

That service provisions by local government is the product of the ability to

generate revenue. Therefore, based on this, the higher the revenue the higher the

number/quantity of services provided and vice versa;

That commercial/economic activities are great determinants of local

government revenue and subsequently service provision. This is based on the

comparative data analysis where results have shown that Sabon Gari local government

revenue generation capacity has more impact on service provisions than Kudan local

government. It is therefore concluded that, this is as a result of the growing level of

economic/commercial activities in Sabon Gari Local Government Area that are not

much available in Kudan Local Government Area.

That effective management of generated revenue is also a fundamental issue in

the provision of services to the local populace. Therefore, revenue generation is not an

end in itself in determining service provision, but proper utilisation is also a great

determinant.

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6.3 RECOMMENDATIONS

Having summarised and concluded the work, the following recommendations

among others would serve as ways through which local government revenue generation

should be boosted in order to improve the level of service delivery to the local

citizenry.

(1) Having established that the more the revenue generated the more services are

provided to the citizenry, more revenue sources should be identified and

adopted in order to increase and improve the revenue base of the local

governments. The present revenue sources should also be fully tapped to

improve the revenue base of the local government. Here, it is strongly

recommended that the local government should adequately be involved in

commercial transportation. By this, it means that commercial vehicles (cars,

buses and trailers) should be purchased and operate, not on a subsidised bases

but purely on commercial bases i.e. profit maximisation. However, this

commercial vehicles should not be managed by any official or any department

of the local government council, but a management consult be given to manage.

For example, Afribank, and other transport consults on contract management

basis. This will undoubtedly improve the revenues of the Local Government

Areas under study.

(2) Diversification of income sources should be made in the two local government

under study. However, Kudan local government should be more diversified

since our findings revealed that SabonGari local government has more revenue

sources than Kudun local government perhaps due to the fact that the former is

having more commercial and economic activities than the latter. This

diversification could be done even in terms of agriculture in addition to the

123

commercial undertakings. For Kudan to be diversified, sound policies should be

made that can attract investors especially with regards to commercial farming
and food processing through cottage industries and more specifically selling

plot at subsidised price to only those who would want to establish food

processing factory and commercial farms. A tax leave should be given to these

factories for a period of 10 years of start-up of operation.

(3) In order to ensure that taxpayers pay their taxes as at when due, a public

enlightenment campaign should regularly be organised explaining the

importance of paying tax not only for revenue generation but also for service

delivery. There has always been reciprocity between tax payers and the

government (Local Government). Tax payers refusal to pay local taxes was as a

result of poor services or lack of services rendered by local governments. The

higher the services, the higher the taxes and vice versa.

(4) Efforts should be enhanced by the local government towards generation of

internal revenue so as to meet the yearnings and aspiration of the people at

grassroot level.

124

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129

APPENDIX

Department of Local Government and Development Studies, Ahmadu Bello University, Zaria

Questionnaire Form Dear Respondent, I am a post graduate student of the above department
conducting a research proposal titled “Impact of Local Government Revenue on Service Delivery
InKudan and SabonGari Local Government Areas, Kaduna State.” The main aim of the questionnaire is to
get authentic information for this research work only. Confidentiality of respondents view is very much
assured. Thank you!

Ibrahim Umar MPA/LG/Admin/1667/08-09

130

Questionnaire 1: For Local Government Staff Respondent are please required to supply answers to the
questions by ticking the box that is applicable and filling the blank spaces were provided. Part One:
Background Information: a. Your designation or position ………………………………………………………… b. Local
Government…………………………………………………………………….. c. Highest
Qualification………………………………………………………………… d. Main occupation of the people of the
area……………………………………… Part Two: Issues on Revenue Generation: 1. Your local government has
several sources of revenue generation. (a) Strongly agreed [ ] (b) Agreed [ ] (c) Disagreed [ ] (d)
Strongly disagreed [ ] (e) Undecided [ ] 2. There is a strong revenue generation strategy in your local
government. (a) Strongly agreed [ ] (b) Agreed [ ] (c) Disagreed [ ] (d) Strongly disagreed [ ]
(e) Undecided [ ] 3. The level of commitment of your local government towards identifying more
sources of revenues is essentially effective. (a) Strongly agreed [ ] (b) Agreed [ ] (c) Disagreed [ ]
(d) Strongly disagreed [ ] (e) Undecided [ ]

4. The attitude of taxpayers towards paying tax is essentially cooperative. (a) Agreed [ ] (b) Strongly
agreed [ ] (c) Disagreed [ ] (d) Strongly disagreed [ ] (e) Undecided [ ]

5. State your reasons on your answer in the question 4 above. (a)

……………………………………………………………………………… (b)
……………………………………………………………………………… (c)
………………………………………………………………………………. 6. The local government revenue generation efforts
is essentially satisfactory. (a) Strong agreed [ ] (b) Agreed [ ] (c) Disagreed [ ] (d) Strongly
disagreed [ ]

131

(e) Undecided [ ]

7. The level of local government funding on community development projects is sufficient. (a) Strongly
agreed [ ] (b) Agreed [ ] (c) Disagreed [ ] (d) Strongly Disagreed [ ] (e) Undecided [ ]
8. If no sufficient, what new sources would you suggest for the local government? (a)
…………………………………………………………………………… (b) …………………………………………………………………………….
(c) ………………………………………………………………………………

9. There is high level of remittance of revenue into local government account by the revenue collectors.
(a) Strongly agreed [ ] (b) Agreed [ ] (c) Disagree [ ] (d) Strongly disagreed [ ] (e) Undecided [
]

10. There is a better level of utilization of the revenue generated in your Local Government Area. (a)
Strong agreed [ ] (b) Agreed [ ] (c) Disagreed [ ] (d) Strongly disagreed [ ] (e) Undecided [ ]

11. State reason for your answer to question 10 above. (a)

…………………………………………………………………………… (b) ……………………………………………………………………………
(c) ……………………………………………………………………………. 12. In which of these primary responsibilities of
local government has your local government performed creditably well. [ ] (a) Provision and
maintenance of grave yard [ ] (b) Refuse evaluation [ ] (c) Construction of drainage [ ] (d)
Construction and maintenance of markets [ ] (e) Construction and maintenance of motor park [ ]

13. How often does your local government send revenue staff for training? (a) Very often [ ] (b) Often
[ ]

132

(c) Not often [ ]

14. Which of the following strategies do you think will yield high revenue for your Local Government
Area? (a) Through use of local government tax collectors [ ] (b) Through use of traditional authorities
[ ] (c) Through use of task force [ ] (d) Through use of enlightenment campaign [ ] (e) Through
contracting out to contractors [ ] (f) Through the use of E-payment [ ] 15. Suggest measures you
consider necessary for improving revenue generation effort in your local government. (a)
………………………………………………………………………………… (b)
………………………………………………………………………………… (c)
…………………………………………………………………………………

133

Questionnaire II: For Beneficiaries Respondent are please required to supply answers to the question by
ticking the box that is applicable and filling the blank spaces provided. Part One: Background
Information: (a) ……………………………………………………………………………………. (b) Local
government…………………………………………………………………. (c)
Occupation…………………………………………………………………………. Part Two: Issues on Communities
Development: (1) There is government programme towards improving irrigation farming in your Local
Government Area. (a) Strongly agreed [ ] (b) Agreed [ ] (c) Disagreed [ ] (d) Strongly disagreed [
] (e) Undecided [ ]

(2) Fertilizer is adequately subsidized for farmers by the local government. (a) Strongly agreed [ ] (b)
Agreed [ ] (c) Disagreed [ ] (d) Strongly disagreed [ ] (e) Undecided [ ]

(3) There is effective hiring scheme of farm implements by your local government for farmers. (a)
Strongly agreed (b) Agreed (c) Disagreed (d) Strongly disagreed (e) Undecided (4) The immunization
exercise is adequately and effectively carried out in your area. (a) Strongly agreed [ ] (b) Agreed [ ]
(c) Disagreed [ ] (d) Strongly disagreed [ ] (e) Undecided [ ]

(5) There is provision of good refuse collection system by your local government. (a) Strongly Agreed (b)
Agreed (c) Disagreed (d) Strongly Disagreed (e) Undecided (6) How do you generally rate the
performance of clinics in your community? (a) Highly effective [ ]

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(b) Effective [ ] (c) Ineffective [ ] (d) Highly ineffective [ ]

(7) How do you generally rate the standard of primary schools in your community? (a) Highly standard
(b) Standard (c) Not standard (8) Drainages are adequately constructed by your local government. (a)
Strongly agreed [ ] (b) Agree [ ] (c) Disagree [ ] (d) Strongly disagreed [ ] (e) Undecided [ ]

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APPENDIX II

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A Tractor purchased by Sabon Gari local government

Fencing of Bashir Aminu LGEA Primary school at Anguwan Gabas Ward, Sabon Gari Local Government.

Furniture provided to Primary schools at Sabon Gari Local Government.

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Renovation of clinic by Sabon Gari local government in Palladan

Fencing of LGEA Primary School Yakubu, Kudan ward, Kudan local government

Text books distributed to LGEA Primary School Yakubu, Kudan ward,Kudan local government

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Women centre (under home economic unit) at Anguwan Wali Hunkuyi ward

Purchase of Tractor by Kudan Local Government

Purchase of fertilizer for farmers by Kudan local government