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The adverse situation in the various local areas of Nigeria has led the researcher to go into this very topic.  Hence the purpose of this  work is to enlighten people  mostly students in the school of financial studies on how revenue is generated in local problems confronting them as regards revenue generation as well as to the problems.

          However local is expects to use the funds generated in embarking on income earning projects; projects that come under fee or bill charging utilities like portable water electricity construction of market squares.

          However before fund can be generated one must make ways of getting this funds like grants given to local for some purpose by the federal .  The central also determines the source extent purpose and maximum dilation for which borrowing is to embark upon by the local and not just going ahead to borrow.

          Local raise loans to purchase plants and equipment as well as other projects whose costs are too great for them to embark on at a time.

          Furthermore local authorities in Nigeria re responsible for the establishment and maintenance of public motor parks bad roads market squares etc.

          It is therefore recommendation for students in the school of financial studies at all level (who will be opportune to  lay hands on this write up) as a ground for the much needed funds internally generated revenue to facilitate projects execution by local .




          Local council as third and last tier of is faced with this primary function of bringing as close as possible the impact of to people of a particular locality.  Impacts such as regulatory policies protected service    development projects e.g. road net work hospitals school markets pipe borne water etc.

          This primary function of the local has in recent times faced a lot  of set back due to   insufficient revenue emaciating from the councils liability to generate (internal) revenue from the local dwellers.  This problem cannot be over- emphasis as it has become a major concern to both he state and federal    

          In relation to the above stated problem the researcher will be investigating on why and how this problem can be tackled for be tackled for better efficiency of the local .


          This study “Revenue generation in local Areas is considered necessary for various essential reasons.  As a matter of fact since we all know that development of any area depends on the revenue generated.  This revenue generation in local area enables the area to carry out some development project such as electricity water and road construction project etc.


          The inhabitants of the various local areas of the nation () will have the course to enjoy the affirmative results to certain extent of all or part of these problems to re3venue generation in local are properly tackled. Hence such myriad of problem of revenue generation which also gives rise to untold hardship will generally be under control or a thing of the past.

          This will become a tool for most local area to a speedy set-up of some strategies which will enable them to generate their revenue easily and as well as executing their project effectively.  This study will be of paramount significance to the society mostly to those students in school of financial studies ( & finance) who are making or intending to carry out research in the problems that confront most local in Nigeria on revenue generation.

          This will also give potential market men and women as well as other residence of various local areas to comply with their respective local councils as regards payment of tax rates charges etc.

          Finally it will enable the researcher to have an in-depth knowledge of the study. Therefore the significance of this study is by no virtue exhaustive.


·                    ATION: This is one of the ways local generation revenue.  It is a compulsory levy imposed by the local on most of the entire members of the society who are capable of paying tax or who are expected to pay tax.

·                    PERSONAL :  This is a form of direct tax which is levied on the wages salaries and other earnings of individuals.  In assessing this kind of tax certain allowances (wife children dependent relative allowance etc) are deducted this balance is then taxed to determine this amount to be paid as tax.

·                    LOAN:  loan can be described as financial aid with interest payable. Sometimes local borrow money in from of loans from other bodies like: bank, state federal (if possible) etc to enable them execute their project when they are in short of fund.  However this loan is payable at a given interest rate over a specified period of time.

·                    RENT & ROYALTY:  these re payment made to the  local   body by hose who make use of local   properties such as : Land, building e.t.c

·                    GRANTS: Grants are said to be financial aids without interest.  This implies that grants are forms of gift   granted to local by a body (federal state or any other body without paying back.

·                    CHARGE FINES & FEES: These are among the means of generating revenue by the local they are payments made to local by those who indulge in one commercial activity or the other.  Such fees are: motor licensee fees road /bridge tolls market fees e.t.c 

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