LOCAL GOVERNMENT AND TAX MOBILIZATION AND GENERATION IN NIGERIA

CHAPTER TWO
LITERATURE REVIEW AND RESEARCH METHODOLOGY
2.1       LITERATURE REVIEW
For clarity of purpose and thorough investigation, the review of related literature shall be sub- divided into two parts, which are local government and tax mobilization and generation in Nigeria.
            Local Government
Insight into the concept of local government could be derived by looking at few definitions or explanation of the term local government by other scholars.

According to Nwankwo (2002) local government is a government set up by central authority or state government as a means of ensuring effective administration at the grassroots. He added that in legal terms, local government is defined as a body corporate, having perpetual succession and a common movable and immovable properties.
            Bello Imam (2001) sees local government as “that unit of administration with defined territory and power as well as administrative authority with relative autonomy”.
            Emezi C. (1984) defines local government as a system of local administration under local communities that are organized to maintain law and order, provide same limited range of social amenities and encourage cooperation and participation of inhabitants towards the improvement of their condition of living. It provides the community with formal organizational framework which enables them to conduct their local affairs effectively for their general good.
This implies that the primary function of colonial administration is to maintain law and order and to initiate and implement certain developmental projects that will definitely impact on the living standards of the local populace to enable them work for the interest of the rural and urban dwellers within their territory and jurisdiction.
Furthermore, a more encompassing definition of local government and one that captures the relevant indices of local government is contained in the guidelines for a reform of local government in Nigeria. According to the guidelines, a local government is:
            Government at the local level exercised through representative council established by law to exercise specific powers within definite areas. These powers should give the councils substantive control over local affairs, as well as the staff and institutional and functional powers to initiate and to 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 to ensure through active participation of the people and their traditional institutions, that local initiates and response to local need are examined. The above definition implies that there are essential distinguishing characteristics of local government which are also well articulated in scholarly works of the united Nation and many others respectively. Orewa and Adewumi describe local government as:
An essential instrument of national or state government for the performance of certain basic services, which can best be decided upon and administered locally in the intimate knowledge of the needs, conditions and petulancies of areas concerned. It unites the people in a defined area in a common organization whose functions are essentially complimentary to those of the central government in the interest of the local residents of satisfaction of common community need…….Consequently, its effectiveness is judged through the developments it generates, social amenities it provides, and to what extent it has catered satisfactorily for the happiness and general well being of the communities it has established to serve.


2.1.1   Features of   Local   Government:
 1.        Localness: This particular feature implies that local government 
Is the lowest tier of government, it is government at the grassroots or local level. Consequently, local government is subordinate but subservient, to the central or federal or state government.
2.         It has a legal existence enshrined in the constitution as in Nigeria. This protects it from arbitrary actions of higher authority. As a legal entity, it can sue or be sued and has a perpetual succession. This implies that the life of local government does not expire with the end of each administration.
3.         It enjoys substantial autonomy. Although local government are subject to state or federal government control in certain areas, they enjoy a reasonable degree of independence in administrative and financial affairs, such as hiring, control and discipline of their own staff subject to a certain upper limit, the preparation of animal estimates or budgets, and the execution of certain projects.
4.         It exists within a defined territory
5.         Local government exercises its authority over a given population, In other words, as a co-pirate entity; local government is created to serve citizens resident in a known location.
6.         It exercises specific powers and performs certain functions as enshrined in the constitution or statues as in Nigeria.
7.         The council is composed at the elected representatives of the local people.
8.         Local government is usually divided into departments, divisions or units which facilitates the accomplishment of its good, objectives and function.
Aims for the creation of local government as stated in the guideline for the 1976 government reforms. The principal aims the local government are.
a.         To make appropriate services and development activities responsive to local wishes and initiatives
b.         To facilitate the exercise of democratic self government close to the local levels of our society and to encourage initiative and leadership potentials.
c.         To mobilize human and material resources through the involvement of members of the public in their local development and
d.         To provide two – way channel of communication between local communities and government (both state and federal).
            The local governments are expected to bring government to the rural people. They are to carry out developmental services in the rural communities.
            Succinctly, Ojo (2009) opined that in recent times, lads of funds have often been attributed as a major problem which has hindered effective and successful execution and completion of many public projects at the local government level. However, experience has shown the contrary. Poor tax mobilization and generation rather than inadequate finance is the bane of local government inability to achieve substantial development in their own domain. In a book titled Nigeria journal of public administration and local government, it was pointed out by Agubuzu L.O.C. (1985), that the council relax and depend on the government for most of the funding and had neither the staff nor the will to do old and new areas of raising finance. The local government are therefore has no financial stability and autonomy. With the above assertion by Agubuzu O.I.C. it is allocation which make them lack precision towards generating more revenue from internal sources. Moreover, the revenue staff are not adequately oriented on the revenue generation system. All these points by Agubuzu are quite acceptable but do not proffer possible way of ameliorating the problem as in the area of staff and revenue.
            Ronald Waith (1964) in his contribution, he added that “local government must be seen against an economic background to achieve credibility” local government has to go one step forward and create wealth through tax, that is to assist in the revenue generation to the benefit of the local government.
            One aspect to be looked into in tax generation and mobilization in Nigeria local government system is financial accountability.
            Ehow Business Accounting (2010) defined financial accountability as a specific type of accounting that is used by businesses to prepare report on the finances of a firm and local government for people outside of the organization such as stakeholders or government agencies. It is governed by specific accounting standards to ensure uniformity in reporting.
            Financial accountability in tax generation is necessary because of the number and variety of people who are affected by the behaviors and action of government. One group of people who need to know what is going on are the electorates. Indeed the general public have the right to know the account of the public revenues accrued from taxation. Also, the employees and elected representative will want to know how public funds generated through tax are expended. This is to buttress the fact that public fund is public interest
            In resent times, the issue of tax mobilization generation has come to the forefront due to a number of high profile scandals.
            Adsnsji (1970) blames the ineffectiveness of local government tax mobilization and generation on the following reasons:-
a.         Lack of mission or lack of comprehensive functional roles
b.         lack of proper structure (ie the role of local government) in the development process was not known.
c.         Low quality of staff
d.         Poor tax generation
            Nevertheless, these problems had been partially addressed by the 1976 local government reforms. The responsibilities of the local government are Cleary stated in the constitution. They also have a share from the federal and state government fund. Though the states are not faithful remitting to the local government their share from the internally generated revenue which includes funds generated from tax. Sometimes the states also usurp some tax generation and mobilization functions of local government and encroach on their tax resource base.
            Again, the issue of low quality of staff in the local government system is now a thing of the past as many hands are now employed to the local government but those ones employed are not faithful. The fact is that local government new engages the services of untrained, fraudulent and dishonest staff who swindle out fund realized from tax from the government. The problem of local government is not the number of staff employed but high rate of corruption.
            The fact was buttressed by Ndubuisi (1998), he stressed that local government problems of tax generation is the cute of corruption, fraud and embezzlement. Although tax generations are inadequate, the tax so generated are largely mismanaged by the tax collectors and the top politicians as well as civil servants controlling the system.
            Wraith (1972), argued that local government have both mandatory and permissive power to generate tax. But in west Africa, he stated that local government are dependent on the other theirs of government are financially and otherwise thus, they are subject to control because they are not viable on their own.
            In the view of Adedeji (1979), the success or failure and effectiveness and ineffectiveness’ of tax generation must depend on tax generation powers available to individual local government and the way those monies are expended. Similarly, in Nigeria and Ebonyi state in particular, local government are mere appendage of the state government. The state governor and his assembly members decide who should become chairman of any local government. The activities of the chairman are controlled by the sate government. The elections of the local government chairman are telaguided and masterminded by the governor. The election favours only the governor’s candidate who will always be loyal to the dictate of the governor. If the chairman can convince the governor that he will be accountable to him by aiding and abetting tax fraud, he will always be elected into the council. The electorates have no powers to decide who should be the local government chairman because their votes do not count.
            Consequently, local government chairman are not responsible to the electorates rather they are responsible to the state governor.
 In the final analysis, the effectiveness or efficiency
 of the local government tax mobilization and generation may be enhanced if there is transparency in tax generation network of the local government. This is because tax mobilization and generation is a veritable tool for effective local government administration. Hence, there is a link between tax mobilization and generation and prudent local government administration.
2.1.2   Problems
            Generally, the local government is faced with myriads of problems ranging from corruption and embezzlement, poor financing, mismanagement of funds to poor leadership. However the major concern of this research is the problems of tax mobilization and generation.
            The researcher in the course of his research work finds the following as the major problems militating against tax mobilization and generation in Nigeria local government system with special reference to Ohaukwu local government Area of Ebonyi state.
a.         Shortage of Well Trained and Qualified Personnel.
In Ohaukwu local government, there is shortage of well trained and qualified personnel which suppose to serve as tool for collection of taxes and rates. The few that are available are not properly trained in efficient tax mobilization and generation process. Also the local government is short staffed to carry out this duty.
b.         Inability of the Local Government to Employ Qualified Staff.
The local government lack the capacity to attract and retain the right caliber of staff to articulate plans and execute programmes and projects in order to transform the live of the grassroots people through taxation.

c.        Tax Avoidance and Evasion
Another problem facing local government council in the area of tax mobilization and generation is tax avoidance and evasion. Many tax payers in Ohaukwu local government avoid and evade tax. Most populace do not want to pay tax and can go to any length to evade tax payment.
d.         Limited Scope of Taxation.
There is just few areas by which the local government are allowed by the constitution to collect tax.  Greater percentage of the taxable scope goes to the federal government and the state while very few areas are left for the local government to collect tax from the tax payers.
e.         Corrupt and Insincere Tax Collectors
There is a lot of insincerity and unfaithfulness on the part of the Local Government. The tax collectors usually divert the revenue generated through taxation to their personal use thereby denying the Local government a huge form of money which should have been used to provide developmental amenities to the rural dwellers.
f.          Ignorance of the Importance of Taxation.
Many people erroneously think that the money they pay as tax is for the tax collectors. They therefore ignorantly refuse to pay tax.
g.         High cost of mobilization
The government sometimes spend much money to mobilize the tax collectors to go and collect tax from the payers. At the end the tax collector come back with no tax collected.
h.         Mismanagement of Government Fund:
Embezzlement and Misappropriation of fund by those at the corridors of power kill people’s interest to fulfill their civic obligation at paying tax.
I.         Lack of Provision of Amenities
Many people with the belief that the money they pay as tax is used only for the provision of social amenities do not pay tax if these anticipated amenities are not provided.
j.          False Declaration of Income:
Many workers especially those in private firms do not declare their real income thereby posing difficulty for tax assessment officer to determine amount to collect as tax.
k.         High Cost of Taxation:
High taxes scare the potential payers away. They will resort to any known trick to avoid or evade tax payment because tax changed is too high.  
2.2       HYPOTHESIS:
In an academic research of this nature, it will be expedient to provide hypothesis to serve as a guide in the process of finding solutions to the identified problems of tax mobilization and generation in Nigeria Local government system with special reference to Ohaukwu local government area of Ebonyi state.
2.3       Operationalization of Key Concepts:
i.          Local Government: government of the third tier in a federal arrangement. The grassroot government that is very close to the rural dwellers established by Law to carry out government activities. It is an agency of the government.
ii          Tax: Tax is a compulsory payment made by each eligible person towards the expenditure. The primary purpose of taxation is to raise revenue for the government. Government also uses taxation to promote economic and social policies.
iii,       Tax Mobilization: To work together or collectively in order to achieve a particular taxation aim. Tax mobilization is the organization of a group of people to collect tax revenue to the government.
iv,        Tax Generation: The production of tax or the creation of taxation to the government.
v          Nigeria: Nigeria the largest country in West Africa with 36 state and 774 local government area, with over 160 million people.
vi         Tax evasion: crime of deliberately not paying taxes that you should pay.
vii       Tax avoidance. Ways of paying only the smallest amount of tax.
viii      Problem: A thing that is difficult to deal with. A thing that difficult to undertake. Problems at tax mobilization and generation challenges of taxation in Nigeria local government
ix         Prospects: The chance of being successful. Brighter future for local government tax mobilization and generation in Nigeria.
2.4       Methodology:
2.4.1   Methods of Data Collection.
The methods of data collection for this research work include primary and secondary sources. The primary source includes personal interviews, observations and personal experiences. Indeed the researcher acted as a participant observer. The secondary source of information includes textbooks, journals, interviews, government publications, lecture notes and local government financial documents and questionnaire.  

Analysis
2.4.2   Method of Data Analysis
            In this work, the method of data analysis was borrowed from Enc, (1998), inferential statistic method which sates that sample result are used to draw conclusion about the population from which the sample is drawn. Questionnaires were also administered to the respondents in their houses and offices and were collected two days later. The researcher then used empirical study which enabled him to understand then problem of tax mobilization and generation in Nigeria local government system with special reference to Ohaukwu local government area of Ebonyi state.
2.4.3   Area of Study
The area of study for this research work is Ohaukwu local government area of Ebonyi state. All the (16) communities in the local government cannot be studied consequently, the communities selected for the study are only (6) they include Umuagara - Izhia, Amilce, Okposhi-Eheku, Ukwagba and Wigbeke in Effium.
2.4.4   Population of the Study
As the name implies, Ohaukwu Means large – people. Ohaukwu local government area is densely populated. The 2006 population report recorded over 196, 337 people.


2.4.5   Sample and Sampling Procedure
            Due to the difficulties involved in studying the entire population of the local government six (6) communities were randomly selected. One hundred and (140) respondents were selected from the communities. And sixty (60) council workers most of the populations were selected from the finance department to make a total of two hundred respondents. The structured questionnaires were administered on those selected persons to elucidate information.
Sample Error
            Sample error or estimation is the error caused by observing a sample instead of the whale population. Mathematically, it is the difference between the sample and the whole population (ie 196, 337 – 200 = 196, 137).

2.4.6   Validity of the Instrument
            Validity means the degree to which the instrument and statistical analysis measures what the researcher wants to measure (Mc Nabb, 2005).
            Here, the researcher applied both content and face validity to ensure validity of the instrument. During the pre–test, some ambiguous questions were found and corrected by the project supervisor who certified its validity before the researcher went ahead to issue it out to the respondents.
2.4.7   Reliability of the Instrument.
The researcher administered the questionnaire by himself. He conducted a pilot study of the questionnaire. This is to make sure that the respondents especially the semi-literate ones were free from being bias. The researcher noticed that the respondents were consistent in their responses.
2.4.8   Administration of the Instruments
The structured questionnaires were administered to two hundred respondents who were randomly selected from six major communities in Ohaukwu local government area and the local government council. The questionnaires were administered separately by the researcher. The responses of the respondents were presented in statistical table for easy analysis.
2.5       THEORETICAL FRAMEWORK 
The theoretical framework for this research is based on scientific management theory. The founder of scientific management is Fredrick Winslow Taylor (1856 – 1917). His idea of scientific management were developed in his books; shop management (1903) and principles of scientific management (1911).
Scientific management sought to increase output by discovering the fastest, most efficient and least cost production method. The bases of scientific management are efficiency and economy in his book, “the principle of scientific management”, Taylor stated that the principal object of management should be to secure the maximum property for the employer coupled with the maximum prosperity for each employee. For the employer maximum prosperity means not just large profit in the short term but the development of all aspects of the enterprise to a state of permanently prosperity.                         
For the employer maximum prosperity not just immediate higher wages his development so that he may perform efficiently in the highest grade of work for which his natural abilities fit him.
            According to Ugo (1999), the scientific management principles were based on a systematic study of work to discover the most efficient method at performing the job and then a systematic study of management leading to the most efficiency methods of controlling the workers.
According to Taylor, for the Principles of Scientific Management are:
1.         Develop a science of each element of man which replaces the old rule-of thumb method
2,         Schematically select and train, teach and develop the worker to make him efficient.
3.         To bring together of the science of work and the scientific selection and training of men.
4.         The constant and intimate cooperation of management and work men.
From the analysis of scientific management theory, it could be deduced that, Taylor was interested in how managers could control and coordinate the performance of task so as to improve organizational efficiency. His emphasis was on how to improve productivity in any given organization. However, Taylor do not consider labour side of work. He assumed human beings can always be influenced by cash reward. He subject human being as adjoint of machine.
APPLICATION OF THEORY TO THE STUDY
Following the scientific management principles of efficiency in productivity or service delivery, this research work is based on local government tax mobilization and generation in Nigeria: Problems and prospects. Indeed it has been widely acclaimed that local government in Nigeria are inefficient in terms of service delivery, this high rate of bribery and corruption, wastage of finance and recklessness in spending. Conspiracy and looting of tax proceeds, unaccountability to the tax payer, collusion and embezzlement, forgery, avoidance and evasion, and untrained tax staff personnel and a host of other problems.
In the high of the above, there is need to adopt scientific measures to ensure efficiency in service delivery in the area of tax mobilization and generation.
Workers and elected local government officials should be trained and controlled to be efficient in service delivery. There should be feed back mechanism to keep the tax payers abreast of the activities of the local government. In order to attain effective tax mobilization and generation in the local government, there should be effective monitoring of the tax field workers.
Again, efficiency in the local government tax mobilization and generation in Nigeria may be achieved by employing God-fearing and qualified tax officers to run the affaires of tax generation. There is also need for frequent human capacity training to keep the tax officers on the latest trends in tax mobilization and generation.
Tax mobilization and generation if well harnessed will guarantee higher productivity in Ohaukwu Local Government Area of Ebonyi State.

CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1       DATA PRESENTATION
Having discussed the literature review and methodology, it becomes imperative to present data and information gathered from the field, so as to analyze and prove the validity of the hypothesis formulated for this research.
In carrying out this work, the research has carefully interviewed a total of 200 persons from six major communities of Ohaukwu local government Area and the council. The people were selected through the stratified sampling technique and administered with the structured questionnaires. They were interviewed separately and their responses are represented in statistical table for easy analysis as follows.
SECTION A: DEMOGRAPHIC DATA
Question 1: How old are you?
Table 1(a): Ages of Respondents
Age of Respondents
Frequency
Percentage
11 years – 30 years
30
15%
31 yrs – 50 yrs
120
60%
51 yrs – 70 yrs
40
20%
71 yrs – 90 yrs
10
5%
Total
200
100%
Source field work 2013
Table 1a above shows that 15% of the respondents are between the ages of 11 years, 60% of the respondents are between ages 31 years – 50 years, 20% of the respondents are between ages 51years – 70 years, and 5% of the respondents are between ages 71 – 90 years
This implies that majority of the respondents are between the ages of 31yrs – 50 years. It is believed that this age group constitutes the labour force. The average is 44 years.
Question 2a Your Sex.
Table 2a: the Sex of the Respondents
Sex
Frequency
Percentage
Male
112
56%
Female
88
44%
Total
200
100%
Source: field work, 2013
Table 2a, indicates that 56% of the respondent are male while 44% of the respondent are female. This shows that men are more on the ground on community matters and in the politics in the local government

Table 3a Marital Status
Respondents
Frequency
Percentage
Married
120
60%
Single
40
20
Widowhood
28
14%
Separated
12
6%
Total
200
100%
 Source: field work 2013
Table 3a above shows that, 60% of the respondents are married, 20% are single, 14% of the respondents are widow and 6% of the respondents are separated. It is imperative to note that the married class forms the most responsible group and they are the bulk of the tax payers in any society.   
Table 4a Religion
Respondent
Frequency
Percentage
Christianity
174
87%
Muslim
8
4%
Traditional religion
18
9%
Total
200
100%
Source: field work, 2013
Table 4a above shows that 87% of the respondents are Christians, only 4% percent are Muslims, 9% of the respondents are traditional religion believers. This proves that the majority are predominantly Christians. Therefore they should be honest in their response.
Table 5a: Occupation
Respondent
Frequency
Percentage
Civil servants
82
41%
Self employed
20
10%
Farming
58
29%
Trading
12
6%
Students/unemployed
28
14%
Total
200
100%
Source: field work, 2013
Result of table 5a above shows that 41% of the respondent are civil servants, 10% are self employed, 29% of the respondents are farmers, 6% are traders while 14% of the respondents are students and unemployed members of the society. This implies that the majority of the respondents are civil servants others are doing one thing or the other to earn a living.


Table 6a Education
Respondent
Frequency
Percentage
Primary
44
22%
Secondary
80
40%
NCE/OND
36
18%
Higher education
40
20%
Total
200
100%
Source: field work, 2013
Table 6a: Education indicates that 22% of the respondents have only primary education, 40% have secondary education, 18% respondents have NCE/OND and 20% attended high institution. This indicates that majority of the population attained secondary level and they constitute the numbers that are employed to collect tax for the local government.
Table 7a Ethnicity
Respondent
Frequency
Percentage
Hausa
20
10%
Yoruba
10
5%
Ijaw and others
10
5%
Igbo
160
80%
Total
200
100%
Source: field work, 2013
Result of table 7a above shows that 10% of the respondents are Hausa, 5% are Yoruba, 5% are Ijaw and other tribes while Igbo has the majority. However, the result shows that the Igbos in the local government are very hospitable, friendly and accommodative
SECTION B
Research Question 1b: Are there Sufficient Number of Trained and Qualified Tax Officers in the Local Government Service?
Respondent
Frequency
Percentage
Yes
62
31%
No
116
58%
I don’t know 
22
11%
Total
200
100%
Source: field work, 2013
Result of table 1b above shows that 31% of the respondents agreed that there are sufficient number of trained and qualified tax officers in the local government services, 58% says ‘no’ and 11% of the respondents say they do not know. From the above result, majority of the respondents said ‘No’ hence, there is no sufficient number of trained and qualified tax officers in the local government service.
Research Question 2b: Does the local government council send their tax officers to periodic training and workshop?
Respondent
Frequency
Percentage
Yes
34
17%
No
140
70%
I don’t know 
26
13%
Total
200
100%
Source: field work, 2013
From the table 2b above, it shows that 17% of the respondents said that the council sends her tax officers to periodic training and workshop, 70% says ‘No’ that the local government does not sent their tax officers to periodic training and workshop, 13% says they don’t know. This shows that Ohaukwu local government does not sent their tax officers to periodic training and workshop.

Research Question 3b  
Are all the Local Government tax officers Responsible and Accountable? 
Respondent
Frequency
Percentage
Very irresponsible
154
77%
Very responsible
34
17%
Partially responsible
12
6%
Total
200
100%
Source: field work, 2013
Responses from table 3b shows that 77% majority of the respondents agreed that the local government tax officers are very irresponsible and unaccountable, 17% of the respondents agreed that the tax officers are very responsible while only 6% said that the local government tax officers are partially responsible. The result shows that majority of the local government tax officers are highly irresponsible and they do not render account to the local government council.

Research Question 4b: Does the Local Government carry out Public Enlightenment Programmed to the Tax Payers?  
Respondent
Frequency
Percentage
Yes
140
70%
No
34
17%
I don’t know 
26
13%
Total
200
100%
Source: field work, 2013
From table 4b above, it shows that 70% of the respondents says that the local government says ‘No’ meaning that they do not carry enlightenment programmes to the tax payers, 17% says that ‘yes’ that they carry out public enlightenment programme and 13% said that they do not know.
            The result shows that the majority are at the opinion that the local government does not carry out public enlightenment programme to the tax payers.    

  

Research Question 5b: Is the money spent on mobilizing the tax field officers commensurate with their returns?
Respondent
Frequency
Percentage
Yes
160
80%
No
24
12%
I don’t know 
16
8%
Total
200
100%
Source: field work, 2013
From table 5b above, it shows that 80% of the respondents says ‘No’ 12% of the respondents says yes while 8% of the respondents said that they don’t know. The result shows that 80% which is the majority of the respondents said that the money spent on mobilizing tax field officers is for below the returns the bring to the office.
Research Question 6b: Do all the legible tax payers pay their taxes as and when due?  
Respondent
Frequency
Percentage
Yes
34
17%
No
134
67%
I don’t know 
32
16%
Total
200
100%
Source: field work, 2013
 Responses from table 6b shows that 17% of the responses says ‘yes’ that all legible tax payers pay their taxes as and when due, 67% says ‘No’ that all the legible tax payers do not pay their taxes as at when due while 16% said that they don’t know whether all legible tax payers pay their taxes as and when due or not.
Research Question 7b: Does the Local Government executives appropriate the money realized from tax to the benefit of the tax payers?
Respondent
Frequency
Percentage
Yes
30
15%
Partially
40
20%
Not at all   
130
65%
Total
200
100%
Source: field work, 2013
Result of responses table 7b indicates that 15% of respondents affirm that local government council executives appropriate the money realized from tax to the benefit of the tax payers, while 20% says there is partial appropriation of the money realized from tax to the benefit of the tax payers and 65% says there is no benefit at all to the tax payers. This implies that the local government council executives do not expend tax payers money to the benefit of the tax payers.
Research Question 8b: What are the problems of tax mobilization and generation in the Local Government council?  
Respondent
Frequency
Percentage
Insincere and corrupt tax officers
32
16%
Insufficient and unqualified manpower
36
18%
Improper mobilization of tax officers
22
11%
Tax evasion and avoidance
46
23%
All of the above
64
32%
total
200
100%
Source: field work, 2013
The result of table 8b indicates that 16% agreed that insincere and corrupt tax officers is a problem of tax mobilization and generation in the local government council, 18% indicates that unqualified manpower is a problem facing local government tax mobilization and generation, 11% is of the opinion that improper mobilization of tax officials is a problem in tax generation, 23% says that tax evasion and avoidance is the problem facing tax mobilization and generation in the local government while 32% affirms that all the problems enumerated are problems in the local government tax mobilization and generation. However, the responses show that all the problems mentioned above are really problems facing tax mobilization and generation in Ohaukwu local government council.
Research Question 9b: What measures can be adopted to improve tax mobilization and generation in the Local Government Area? 
Respondent
Frequency
Percentage
Government should employ only qualified tax officers
20
10%
Insincere and corrupt tax officials should be disciplined when they are caught to serve as deterrent to others.
40
20%
There should be adequate tax enlightenment campaign organized by the council
10
5%
The local government should expend money realized from tax to the benefit of tax payers
10
5%
All of the above
120
60
total
200
100%
Source: field work, 2013
Result of respondent table 9b above show that all the suggested measure can improve local government tax mobilization and generation in Nigeria local government system. However, among them, insincere and corrupt tax officials should be thoroughly disciplined to serve as deterrent to others. This is because the dupe the tax payers and also dry the treasure of the government thereby leaving the government impotent and ineffective.     
4.2       FINDINGS
Following the above data presentation and analysis, the following are the findings of the research work.  
1.         Insufficient Manpower: The local government tax mobilization and generation is inefficient because they lack trained and qualified manpower to make tax mobilization and generation effective. The few number of qualified staff they have cannot carry out the task effectively because of the vast nature of the local government area. They staff are not also exposed refresher course or training.  
2.         Corruption and Embezzlement of Tax Revenue: In the course of the research work, it was found that Ohaukwu tax mobilization and generation suffer a lot of set back because of corrupt tax officials. There is a lot insincerity at all levels of tax administrators ranging from the tax agents to the tax collectors down to the tax task forces and worse still the local government chairman who sometimes embezzles the fund because they are over–protected by the state chief executives.
3.         Lack of Mobilization and Enlightenment Programme:
Tax mobilization and generation in Ohaukwu local government area is found to be ineffective because there is no mobilization of the tax officials. There is no vehicle to take the staff to the hinterland to access tax payers. The tax payers are not properly educated on the importance of paying taxes. The tax adhoc staff of the council are not given proper orientation.
4.         Tax Evasion and Avoidance:
In the course of the research work, it was observed that a good number of the eligible tax payers run away from paying tax, others pay just part of what they are supposed to pay. This is largely due to economic life of the tax payers. Majority of the eligible tax payers are poor and cannot afford even three square meal talk more of paying tax. It is observed that it is only the civil servants and few order that pay their taxes
5.         Non-Provision of social amenities:
The data analysis show that tax mobilization and generation of Ohaukwu local government is at the lowest ebb because the council does not consider the interest of the tax payers by providing them with social amenities. They don’t benefit anything from the local government after paying their taxes. Since there is no provision of these amenities that would serve as morale booster, they consider paying tax as waste of fund.
6.         Poor Remuneration and hostile attitude towards tax officials:
In the course of the study, it is observed that some of the tax officials are tempted to covert tax revenue fund to their personal use simply because of poor motivation and Remuneration. Local government tax officers are poorly paid. The communities, staff of the council as well as the state tax officers are all hostile to the local government tax officers and the suspicion it based on the assumption that they extort money from tax payers and do not account to the government.

4.3       Discussion of Findings
            Financial recklessness, misappropriation of tax revenue, embezzlement, abuse of office and pursuance of private interest has become the order of the day in local government because of poor tax mobilization and generation in Nigeria local government system. The list is inexhaustible. The unpatriotic life style of the tax payers is really a matter. The inability of the local government council to adequately mobilize its tax officials for effective taxation is a hydra headed problem. All these problems amount to inefficient performance in the service delivery task of the local government. It is obvious that one of the major reasons for the creation of local government area is to deliver services to the rural populace. This study indicates that the local government are no longer interested in service delivery through tax revenue, their interest is now how to share federal allocations.
            Another implication of the findings indicates that poor performance of the local government has resulted to apathy on the part of the tax payers. The tax payers have lost interest on the activities of local government because the local government has failed to finance its fiscal policies and level of development is very low. Tax payers are not respected and are not accommodated in the scheme of affairs. The local government council recruits touts who embarrass and torment tax payers, thereby denying them their fundamental human right.
            Also, it is worthy to note that there are cases of institutionalized corrupt practices. Tax authorities, tax assessment officers, tax agents, tax collectors and other tax officers collaborate with tax payers to under-asses tax payers. They sometimes aid and abet tax evasion and avoidance. other tax officials collect tax revenue for which they issue fake receipts and the tax so collected not paid to the council. Others collect tax without issuing receipts to the tax payers
            It is observed that huge sum of revenue are lost by local government to corrupt tax collectors, licensing officers, collectors of fees and fares, market masters and valuation officers who sometimes collude with corrupt tax payers and company owners so that their tenements are under-assessed or they completely escape valuation and rating. It is a vicious crime. All these account for slow development pace and low productivity and inefficient service delivery in the local government system in Nigeria.  

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1       SUMMARY:
In this study, the researcher has been able to investigate the issue of local government tax mobilization and generation: problems and prospects in Nigeria local government system with a case study of Ohaukwu local government area of Ebonyi state.
            The local government is currently controlled by elected chairman and councilors. The are being assisted by career civil servants. They all take part in tax mobilization and generation in the local government. There is total collapse in the area of tax mobilization and generation probably because of over dependence in monthly statutory allocation. The chairman of the council and the councilors are not given the needed financial and moral support to the career civil servants who are supposed to be collecting taxes for the local government. The over-dependence in statutory allocation has gradually reduced the amount of internally generated revenues. But we forget that if anything should happen to the oil revenue from where the allocation comes from, what will be the fate of the country? The study has brought to the limelight that poor performance of local government is as a result of poor tax mobilization and generation in the system. Local government tax mobilization and generation has been hindered by the following factors:- corruption, embezzlement, poor mobilization, tax evasion, institutionalized corrupt practices, non-challant attitude, insincerity and over-dependence in statutory allocation.
            The major implication of the finding of the research work is that poor tax mobilization and generation has made local government not to be effective in the discharge of their statutory services to the masses at the grassroots.
            Consequently, for the local government to be efficient and viable, effort must be doubled in the area of tax mobilization and generation. Secondly tax payers should be motivated through citing of social amenities in their respective domains to enable them benefit from their hard-earned money. Moreso, government should embark on intensive public enlightenment campaign where tax payers will be made to understand that payment of tax is their statutory obligation to the government. Government and all the accredited disciplinary agents like EFCC, ICPC and others should bring to book corrupt council chairmen and other tax fraudster to serve as deterrent to others.      
Prospects of Local Government Tax Mobilization and Generation in Nigeria
            Local government tax mobilization and generation machinery should be properly enhanced to catch up with the aspiration of the masses. Local government in Nigeria are no longer there to discharge only administrative functions but they are highly involved in collective participation in governance, encourage physical and fiscal economic development though parity, create the conditions for employment within their localities and provide social amenities through revenue accruing from tax generation. These social services will improve the well-being of their people.
            The 1976 Reform has given local governments in Nigeria a sort of radical transformation from being an appendage of state government to a very important and autonomous third tier of government. With this reform, local government become a legal and constitutional entity with properly defined tax mobilization and generation functions as well as guaranteed sources of revenue.
            Local government should strive towards improving tax mobilization and generation strategy and instill transparency and accountability in their tax generation structure. This can be effectively carried out through community enlightenment and community participation in the various tax mobilization and generation activities. There is need that the tax payers are carried along in the tax administration. This would make even the community to join hands with the government tax officials to fish out tax evaders thereby improving the tax revenue base of the local government.

5.2       Conclusion
            According to Adedeji (1969) as cited in Ezeani, (2006: 261), “The success and failure and the effectiveness of local government and financial resources available to the individual local authorities and the way these resources are utilized.
In a related development, Orewa (1988:1) states that “financial management in the context of local government is the discipline on the part of the leadership, management and staff of the local government to prepare a realistic annual budget, collect revenue efficiently, and put into effective use the resources of the area at acceptable standard”.
            Indeed, tax mobilization and generation is a necessity for effectiveness of local government. In European counties, tax is the major source of revenue generation for the government. Efficient tax mobilization and generation can be guaranteed by means of financial sanity and accountability. When there is sincerity on the part of local government council and all the tax officials, then efficiency and effectiveness of local government can be ensured.
            It is therefore remanded that only suitably qualified and trained tax officers should be employed and retained for effective tax administration.
            The knowledge base of the council should be improved.  This will enhance performance at the local government level. When all the eligible tax payers are pulled into the tax net, the ailing local government economy will rise from grass to glamour. This is in line with the global best practices.  

5.3       Recommendation
            Having identified the problems of local government tax mobilization and generation in Nigeria local government system, it becomes imperative to make some recommendations to remedy the situation and move the local government system forward
1.         Employment of Qualified Staff
Local government should employ only suitably qualified and well trained staff to take charge of tax administration at the local government.
2.         Insincere Tax Officials Should be Disciplined
Corrupt and miscreant tax officials who indulge is series of fraud should be thoroughly disciplined to serve as deterrent to others.
3.         Staff Motivation
According to Henry Fayol, he defined motivation as a driving force which stimulates a worker into action. Tax officials should be adequately encouraged so that they can put in their best.
4.         Training of Tax Officials
Training of tax workers for knowledge enhancement will make tax workers more efficient in their job. Training will impact more skills of tax mobilization and generation techniques.
5.         Tax Education
The tax payers should be given tax education to enlighten them in the need to pay their taxes as and when due. They should be made to know the importance of paying tax.
6.         Loyalty of Tax Payers
It is important to recommend that tax payers should be loyal Tax payment is a sure way through which citizens demonstrate patriotism.
7.         Tax Mobilization
The local government should source out best ways of mobilizing taxation in the council area. Functional staff buses should be provided to the internal revenue to enable them have access to all the nooks and crannies of the council because Ohaukwu is very vast.
8.         Internal Control Mechanism
Local government has to establish a good internal control system. This will help to monitor the activities of revenue staff. It will ensure that all taxes collected are accounted for and expended for the interest of the tax payers.
9.         Good Leadership
The chairman of the council should be a person of high moral value. The council chairman should possess leadership quality of Integrity, accountability and prudence. He should academically sound so that he can perform his duties and onus effectively.
10.       Maximum Support to the Tax Officials  
The local government chairman, staff of the council and the entire community should give maximum support to tax officials to enable them embark on tax drive and exploit all tax revenue without fear and molestations.


11.       Financial Regulation 
Finally, there should be regular financial regulations from the federal and state government to regulate the tax activities of the local government system in Nigeria. Financial instruction and procedure should be kept as simple as possible.
As an interim measure state and federal government should adopt massive and short duration training packages designed for the various cadres and in hierarchy. This is aimed that improving knowledge base and enhance effective performance at the local government system in Nigeria.

BIBLIOGRAPHY
Books:

Achebe C., (1983) The Trouble with Nigeria. Fourth dimension publishers co. Ltd. Enugu – Nigeria

Aborisade, Oludimeji (1985) Financial management of local government in Nigeria. Obafemi Awolowo university press, Ile-Ife.

Ademolekun, L.D (1988) Local Government in West Africa since independent. University of Lagos press Nigeria

Adebayo, Adedeji (1979) The future of local government in Nigeria. Ile-Ife: university of Ile – Ife

Adebayo, A. Rowland, L. (1970) (Eds), Local Government finances in Nigeria: problems and prospects, university of Ife press Ife.

Ajaku, L. I. (2006) Foundations of Educational Research and statistics Part Harcourt: Peal publishers

Anyanwu, J. C. (1979) Nigerian public finance. Onitsha, Joanec educational publishers Nigeria.

Nwankwo, B. C. (1992) “Authority in government” Nigeria and world politics in focus. Almond publishers Nigeria

Ezeani E. O. (2005) Local Government Administration. Zik–Chuks publishers Enugu – Nigeria

Ezeani, E. O. (2005) fundamentals of public Administration Zik–Chuks publishers Enugu – Nigeria

Chuta, S. C. (2004) Afro–Orbis Publishing Co University of Nigeria, Nsukka, Nigeria.

M. Ikejiani–Clark and F. C. Okoli (1995) local government Administration in Nigeria: current problems and future challenges. Mangrove Publication Lagos.  

JOURNALS
Ebonyi Ozor (2000): The Accountability and local government administration in Nigeria. Problems and prospects vol.1

M. Dean: The Fulton Report: “Accountable management in civil service. A journal of the royal institution of public administration vol. 47.
Amujiri B. A. (2011) “Meaning of development administration” A lecture Nuts for public administration students, university of Nigeria, Nsukka.

GOVERNMENT PUBLICATION
Federal Republic of Nigeria Model financial memoranda for local government. Third Edition Reproduced in 2009 by state and local government affairs office, Abuja.

The constitution of federal republic of Nigeria (1979).

INTERNET
www.nsukonline.academia.edu/sukedungg overnmentfinancialreportingand
publicaccountability.

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