INTERNAL REVENUE GENERATION AND THE SERVICE PERFORMANCE OF OREDO LOCAL GOVERNMENT AREA IN EDO STATE, 2020-2024.

Abstract

Revenue has been described as the backbone of every functional government. This study examines the
influence of internal revenue generation (IGR) on the performance of Oredo Local Government Area.
Specifically, it investigates how IGR affects service delivery, assesses the effectiveness of the council’s
strategies for mobilizing internally generated revenue, and ascertains the factors hindering effective IGR
mobilization in the area. The paper adopted a qualitative method in which both primary and secondary
sources of data collection were utilised. Resource mobilisation theory was used as its theoretical
framework. The study reveals that over the last five years, Oredo Local Government Council has made
significant progress in performance as IGR has been used to complement revenue from other sources. Also,
the adoption of digital tools in revenue extraction has been the most effective strategy in mobilising IGR.
Furthermore, the study reveals that IGR mobilisation in Oredo Local Government Area is hindered by
outdated property and business registries, weak enforcement of laws, political instability, inadequate
digital infrastructure, dominance of the informal sector, and over-dependence on federal allocations. The
paper therefore recommends, among other things, that the digital revenue platform should be
institutionalised with regular maintenance assured. Also, the council should build a stable, merit-based
management team insulated from political turnover. More so, over-dependence on federal allocations
should be reduced by earmarking a portion of IGR for capital projects in order to reinforce fiscal resilience.