Monitoring Internally Generated Revenue (IGR) At The Local Government Level Using The Open LGA Platform

Background The 1976 local government reforms made provisions for a fixed proportion of statutory allocation of revenue from the federal government to local government councils in Nigeria. This was a result of recommendations of the Aboyade Revenue Commission of 1977. The Revenue Mobilization Allocation and Fiscal Commission (RMAFC), which is charged with allocating revenue to the three tiers of government, was established to monitor the sharing formula from the Federal Account and review the revenue allocation formula from time to time to ensure conformity with changing realities. Presently, the sharing formula stipulates that the federal government is to be given 52%, the states shall go with 26% while the local governments are given 20%. Internally Generated Revenues in Local Government Councils The Constitution of the Federal Republic of Nigeria 1999 CAP C23 L.F.N. 2004 specifically states the types of internally generated revenue that are exclusive to the local government councils. Prominent among these revenues are: (a) collection of rates, radio and television licenses; (b) establishment and maintenance of cemeteries, burial grounds and homes for the destitute or infirm; (c) licensing of bicycles, trucks (other than mechanically propelled trucks), canoes, wheel barrows and carts; (d) establishment, maintenance and regulation of slaughterhouses, slaughter slabs, markets, motor parks and public conveniences; (e) construction and maintenance of roads, streets, street lightings, drains and other public highways, parks, gardens, open spaces, or such public facilities as may be prescribed from time to time by the House of Assembly of a State; (f) the naming of roads and streets and numbering of houses; (g) provision and maintenance of public conveniences, sewage and refuse disposal; (h) registration of all births, deaths and marriages; (i) assessment of privately owned houses or tenements for the purpose of levying such rates as may be prescribed by the House of Assembly of a State; and (j) control and regulation of Outdoor advertising and hoarding, movement and keeping of pets of all descriptions, shops and kiosks, restaurants, bakeries and other places for sale of food to the public, laundries, and licensing, regulation and control of the sale of liquor. The challenges The internally generated funds in local government councils are mainly used to offset the cost of governance by the local government. The cost of governance has gone up astronomically and capital projects are insignificant in proportion to recurrent expenditure. The federal government regularly gives enough funds to the local government in order to provide infrastructural development to the citizens in the local areas, but according to Khalil and Adelabu (2011), these public revenues are being mismanaged by political leaders and local government officials. Less than 5% of local IGR by the local governments is being expended on infrastructural development, while more than 10% is unaccounted for. In many states despite the fact that resources to generate revenue are present, the internal revenue being collected remains the same or continues to decline from one year to another. Using The Open LGA Platform for Community-led IGR Tracking As a Solution The Open LGA Platform can enhance government efficiency, increase economic growth, and advance sustainability through tracking locally generated revenue thereby mainstreaming access to information on Internally Generated Revenue. To embrace effective access to information on Internally Generated Revenue at the local level, we recommend adopting the following implementation process for Local IGR Tracking using the Open LGA Platform; 1. Assessing the Current Situation The first step is to assess the current situation of revenue collection, allocation and usage at the local government level, in terms of its strengths, weaknesses, opportunities, and threats which helps to identify the gap between feasibility versus desired outcomes that we expect from using the Open LGA Platform to track local IGR, to determine the amount of time and resources required to achieve its success. 2. Stakeholder Identification and Engagement Identifying key stakeholders at the local levels of governance, alongside private sector players and community representatives, is crucial. Engaging these stakeholders through regular consultations and collaborative platforms will produce more involvement of diverse perspectives and expertise in this project. 3. Strategic Planning and Policy Alignment Developing a comprehensive Open LGA Platform IGR Tracking strategy aligned with policies on access to public information is important. This will create synergy between this project and already existing advocacies for promoting access to community-focused accountability. 4. Capacity Building and Knowledge Sharing Enhancing local government officials’ and community members’ digital literacy and skills is a foundational step. Improving access usage of the Open LGA platform is an important step towards tracking local IGR. 5. Pilot Projects and Scalability Initiating pilot projects allows for testing this digital solution in a controlled environment. A successful pilot project can then be scaled by more local governments. 6. Feedback Loops Establishing feedback loops is a crucial step for ensuring the effectiveness and sustainability of the Local IGR Tracker. Building Partnerships and Strategies Public-Private Partnerships (PPPs) 1. Encouraging PPPs can leverage the strengths and resources of the private sector, bringing in innovation and efficiency. We recommend partnerships with Dataphye, BudgIT and AdvoKC. 2. Actively involving community members in designing and implementing the Local IGR Tracker will ensure that this solution is tailored to promote access to information on Internally Generated Revenue at the local level. We recommend young people within communities. 3. Implementing Systemic Monitoring and Evaluation (M&E) A robust M&E framework and feedback collection system is essential to assess the impact of this project. We aim to identify policy design and implementation barriers, enabling iterative improvements to enhance the Open LGA Platform. Conclusion Information technology should be introduced so as to create a comprehensive database for tracking internally generated revenue at the local government level. The Open LGA Platform is an important platform for this process.