(a) What is Local Government? (b) Highlight five sources of Local Government revenue.

Answer Details

(a) Meaning of Local Government

Local government is the lowest tier of government, established by law to administer a defined local area, and given the power to make bye-laws, raise some revenue and provide services for the people within its area of authority. It is usually run by elected councils and officials who are closest to the grassroots, and it exists to bring government nearer to the people and to cater for purely local needs.

(b) Five sources of Local Government revenue

1. Statutory allocation: The share of national revenue paid to local councils from the Federation Account by the federal government forms their largest source of income.
2. Grants from the state government: Local governments receive grants and a share of the internally generated revenue of their state governments.
3. Local rates and taxes: They collect community or tenement rates and certain taxes such as market and cattle taxes from residents and traders within their areas.
4. Licences, fees and permits: Income is earned from the issue of licences and permits, for example for bicycles, trucks, liquor, kiosks and radio, and from various fees.
5. Fines and charges from council services: Revenue comes from fees and charges on services such as motor parks, markets, abattoirs, health facilities and from court fines.

Other sources include rents from council property, loans, and profits from any commercial ventures owned by the council.