This study is on revenue generation and utilization of local government areas (Makurdi local governmet). The total population for the study is 200 staff of Makurdi local government. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made directors, administrative staff, senior staff and junior staff was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies



  • Background of the study

The revenue generation and utilization in any local government can hardly be overemphasized. The organization more especially local government is known to have attained or sustained high level of economic growth and development without amply supply of funds and utilization of the establishment people of the locally are used to manage their affairs and achieved the set goals of the council. The above statement explain that local government system is established and expected to perform as well as carryout specific responsibility in improving the living standard of their local dwellers.

Revenue has been considered as a significant issue in the economic development of any nation. It’s importance cannot be over emphasized, be it the federal, state or local government. It serves as a life wire of every business which helps the organization to attain its goals. Revenue is of great importance to national planning and development. The origin of revenue generation and utilization in the local government started with local government reform of (1976) constitution where local government as established to create impact in the generation of revenue for the development of people in the local government area. This (1976) constitution gave the rural people a sense of belonging in the allocation of “national cake,” since Nigeria constitution provides local government authorities with unique opportunities and challenges to achieve self-generation of income for economic growth and development Akpan (1985: 43) Again, the “1985” Nigeria constitution equally provide that local government authorities should benefits from the federal state government revenue to have these supplemented with their self-generation revenue. All the efforts are aimed at making local government viable and self-reliant. These are a total of seven hundred and seventy-four (774) local government councils in Nigeria including Benue State which has twenty-seven (27) local government councils. These local government areas are trying to generation enough fund to sustain themselves financially in these covers, these are many hindrances on the way to their success ranging from instability and poor condition of the economy, poorly conflicted road for revenue collection, uncooperative attitude of payee, insufficient industrial units, inadequate supply of social amenities etc. These problems standing against revenue generation government including Makurdi as a case study. These problems have stimulated the researcher to move into a great mission through research in order in set up strategies to achieve these goals. Poor revenue generation will no doubt prevent the council from rendering good services to the public. The researcher work is therefore set to examine revenue generation and utilization of local government area ( Makurdi as a case study)


It can be observed that revenue generation is an achieve that needs skilled and experienced head in the since that it deals with several dependent and intendment various such as time, energy and labour. Again due to problem of the limited research of the people to satisfy their living very very well; revenue generation becomes difficult. These problems includes insufficient industrial unit, poorly consisted road for revenue collection, micro- operative attitude of payee, inadequate


The objectives of the study are;

  1. To x-ray some of the problems militarily against revenue generation in Makurdi.
  2. To see if increase in revenue generation will aid quality income distribution in Makurdi.
  3. To see if increase in revenue generation will aid quality income distribution in Makurdi.

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0there are no problems militarily against revenue generation in Makurdi.

H1there problems militarily against revenue generation in Makurdi.

H02: there is no increase in revenue generation that will aid quality income distribution in Makurdi

H2there is increase in revenue generation that will aid quality income distribution in Makurdi


This research work is of paramount importance Makurdi authority and other similar local government areas because of the role of financial the organization and institutions. The work will help to advice the researcher knowledge and enable him contributes in finding solution to the problem for which the research is based. The work will also enable to determine the possible course of failure in revenue generation and hereby guiding the government on the steps to take in solving them it will also be of immense benefit to the local government if it takes the findings and recommendations of this research into consideration when making polices and decision concerning revenue generation. This work will be a reference document or further research.

Finally, the research will contribute to the stock of knowledge and stimulate further research into the student matter by students and lecture in the family of and management sciences.


The scope of the study covers revenue generation and utilization of local government area (Makurdi as a case study). The researcher encounters some constrain which limited the scope of the study;

  1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
  2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.


Revenue: This is defined as an income of the local government defined from taxes and other sources.

Taxation: This is defined as a compulsory payment made by individual, corporate bodies or institutions to government at institutions to government at internal for its substance.

Internal revenue: Those revenue generations with in the local government in a given, period.

External revenue: Are that revenue generate in a given e.g statutory, allocation from the federation account.

Personal income tax: This is tax which is imposed on individual’s wages, salaries and other earning it is usually progressive. It is also sum total of compulsory payment to government by citizens of certain percentage usually a year.

Statutory allocation: This is the mechanism for the country financial resources among the different tiers of government in the federation with the overall objectives of enhancing economic growth and development, minimizing inter-government tension and promoting national unity Nworji (2004: 120).


This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.

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