Local Government Tax Utilization and Mobilization in Nigeria: Problems and Prospects
Local Government Tax Mobilization and Utilization in Nigeria: Problems and Prospects By
Adenike .A. ADEDOKUN Senior Lecturer Dept. of Public Admin. & Local Govt. Studies The Polytechnic, Ibadan. NIGERIA.
Contents
• Introduction • Theoretical Framework
• • • •
Tax Mobilization Local Government Finance and Revenue Utilization Problems and Prospects Conclusion
Historical Background
• • • • • • • • • • Based on Indirect Rule *Local government Ordinance of 1916 *Centralised budget system introduced in 1926 *First Revenue Commission of 1946 *Macpherson Constitution of 1948 which encouraged taxes and rates
Tax Mobilisation
Dependency of most LGs on Statutory Allocation Mobilization shows high decentralization Tax Mobilization seen as bloc sharing LG’ IGR consists of taxes,rates,fines etc (limited.see s Table 1)
Mobilizing Tax for effectiveness
• • • • • • Employment of efficient and educated Tax Collectors Training and re-training of LGs staff Reduce Tax avoidance and evasion Computerized system of Tax Collection Expansion of various taxes in LGs Tax Registration via electronics etc.
Revenue Utilization
• Essential services to the grassroots. • Community development:development projects
Problems
• Lack of well trained staff • LGs Dependency on Statutory Allocation • Autonomy vs Control
• Avoidance of Tax by Private sectors and rich bussinessmen • % remittance of Statutory Allocation from other tiers of government • Outdated mode of tax collection.
Prospects
• • Increase revenue base of LGs focusing on Tax Individual LGs should be encouraged to be independent. • Fiscal autonomy of LGs • Decentralization to encourage stronger LGs.
LOCAL GOVERNMENT TAX MOBILIZATION AND UTILIZATION IN NIGERIA: PROBLEMS AND PROSPECTS ABSTRACT The federal structure in Nigeria constrains local governments’ ability to mobilize and use revenue to meet their obligation in a sustainable way. Local government system as the third-tier of government deserves
Adenike .A. ADEDOKUN Senior Lecturer Dept. of Public Admin. & Local Govt. Studies The Polytechnic, Ibadan. NIGERIA.
Contents
• Introduction • Theoretical Framework
• • • •
Tax Mobilization Local Government Finance and Revenue Utilization Problems and Prospects Conclusion
Historical Background
• • • • • • • • • • Based on Indirect Rule *Local government Ordinance of 1916 *Centralised budget system introduced in 1926 *First Revenue Commission of 1946 *Macpherson Constitution of 1948 which encouraged taxes and rates
Tax Mobilisation
Dependency of most LGs on Statutory Allocation Mobilization shows high decentralization Tax Mobilization seen as bloc sharing LG’ IGR consists of taxes,rates,fines etc (limited.see s Table 1)
Mobilizing Tax for effectiveness
• • • • • • Employment of efficient and educated Tax Collectors Training and re-training of LGs staff Reduce Tax avoidance and evasion Computerized system of Tax Collection Expansion of various taxes in LGs Tax Registration via electronics etc.
Revenue Utilization
• Essential services to the grassroots. • Community development:development projects
Problems
• Lack of well trained staff • LGs Dependency on Statutory Allocation • Autonomy vs Control
• Avoidance of Tax by Private sectors and rich bussinessmen • % remittance of Statutory Allocation from other tiers of government • Outdated mode of tax collection.
Prospects
• • Increase revenue base of LGs focusing on Tax Individual LGs should be encouraged to be independent. • Fiscal autonomy of LGs • Decentralization to encourage stronger LGs.
LOCAL GOVERNMENT TAX MOBILIZATION AND UTILIZATION IN NIGERIA: PROBLEMS AND PROSPECTS ABSTRACT The federal structure in Nigeria constrains local governments’ ability to mobilize and use revenue to meet their obligation in a sustainable way. Local government system as the third-tier of government deserves
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