THE IMPACT OF REVENUE BASE ON LOCAL GOVERNMENTS’ SOCIAL ASSETS IN CROSS RIVER STATE, NIGERIA: 1996 - 2010
Journal Title: International Journal of Physical and Social Sciences (IJPSS) - Year 2012, Vol 2, Issue 3
Abstract
This study evaluated the impact of revenue base on social assets creation in selected local governments in Cross River State, Nigeria. The ex-post facto research design was used as a blueprint for collecting data. Data obtained from these local governments covering 1996 to 2010 was analyzed using the Ordinary Least Squares. The study revealed that revenue base has a significant impact on the creation of social assets. However, internally generated revenue which is a stable revenue source has been neglected due to over-dependence on statutory allocation from the federation account. Furthermore, the inability of state government to pay ten per cent (10%) of its internally generated revenue to Councils as statutorily required, coupled with fallouts of the operation of the State Local Government Joint Allocation Account (JAAC) has further impaired the capacity of Councils to create social assets. It is therefore expedient that local governments are encouraged to expand their internally generated revenue bases to aid planning and execution of social infrastructure. Legal constraints by way of the operation of the local government joint allocation account as well as failure of states to discharge their financial obligation to local governments equally need to be addressed.
Authors and Affiliations
TAPANG, ARZIZEH TIESIEH
Keywords
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