A CRITICAL APPRAISAL OF THE EFFECTIVENESS AND STRATEGIES OF REVENUE GENERATION IN KADUNA STATE (1990-1997)

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A CRITICAL APPRAISAL OF THE EFFECTIVENESS AND STRATEGIES OF REVENUE GENERATION IN KADUNA STATE (1990-1997)

ABSTRACT

The ability of any government to fulfill its obligations to the citizenry greatly depends on the resources available at its disposal and the effectiveness of the machinery for generating and collecting these resources. State Governments, being one of the three tiers of government in the Nigerian Federation, largely depend on their Internal Revenue Boards for their internally generated revenue. This study, therefore, is aimed at critically appraising the effectiveness and strategics of various revenue generation and collection mechanism used by the Kaduna State Revenue Board. The methodology used for this research has been Survey, even though it was supplemented by historical research. As the study was limited to the appraisal of Internal Revenue generation of Kaduna State under the Revenue Board, questionnaires were administered to both Board’s personnel and a broad spectrum of taxpayers in the state. Two hypothesis were formulated to test the effectiveness of the revenue generation mechanism in Kaduna State The major findings of the research revealed that there is lack of taxpayer education in the State generally; poor record keeping by both taxpayers and the Board’s officials which hamper effective revenue collection; that self-employed persons are more prone to tax evasion than employees in the organised sectors; that some new strategies introduced in the Board, such as the Accelerated Revenue Generation (ARG) Programme and direct payment of taxes to the Banks, have boosted revenue collection greatly and that the Best of Judgement Assessment (BOJA) is full of arbitrariness. Some of the major recommendation made include: the need for streamlining the BOJA to remove/reduce arbitrary assessments; organising comprehensive and sustained taxpayer education; conducting continous training of Board’s officials and that taxpayers should be compelled to keep records to be prescribed by the Board, failure for which penalties arc to be imposed. In conclusion, it was observed that mere introduction of the strategies in the mechanism of revenue generation and collection is not enough, concerted efforts to improve the tax system should involve a more comprehensive reform of the various aspect of the whole system.

TABLE OF CONTENT

Title page- – – – – – – – – i

Approval page – – – – – – – -ii

Dedication – – – – – – – – -iii

Acknowledgement – – – – – – – -iv

Abstract – – – – – – – – – -v

Table of content – – – – – – – -vi

CHAPTER ONE

INTRODUCTION – – – – – – – -1

1.0 Background of the study – – – – -1

1.1 Statement of the problem – – – – -5

1.2 Purpose of the study – – – – – -6

1.3 Significance of the study – – – – -8

1.4 Research questions – – – – – -9

1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39

Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60

Conclusion – – – – – – – – -61

Recommendations – – – – – – – -62

Suggestions for further research – – – – -64

References – – – – – – – – -65

Appendix I – – – – — – – – -68

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