The Challenges of Internal Revenue Generation and Inclusive Development of Local Government Areas in Cross River State, Nigeria

Abstract

It is most commonly expected that inclusive development as evidence of good governance will guarantee easy access of the local people to “welfare programmes” like health, education, portable water, security and transportation, etc. Where this is not the case, one cannot talk of development. Over the years, LGAs in Cross River State have not been able to fulfill this mission due to limited funds especially from internal sources. What accounts for this shortage was the concern of this study. The study adopts the participant observation method and also source data from the secondary sources. The paper holds that usurpation of revenue points of local government by state government, corrupt tendencies of council functionaries, and evasion of tax as protest against poor handling of public funds by government functionaries among others contribute to poor internal revenue generation by local government. On the basis of this, the paper recommends among others that state government should hands off revenue points of local government as well as invest council funds in real productive ventures for sustainable internal revenue generation.