Revenue Generation and Tax Administration in Local Governments: A Case Study of Surulere Local Government

This study examined revenue generation and tax administration in Surulere Local Government, Lagos State, Nigeria.
The study was motivated by the persistent challenges of inadequate internally generated revenue, tax evasion, weak
tax administration systems, and increasing demand for public services at the local government level. The specific
objectives were to examine the effect of taxpayer registration on revenue generation, assess the influence of tax
assessment and collection procedures on internally generated revenue, and determine the relationship between tax
administration and revenue generation in Surulere Local Government. The study adopted a survey research design.
Data were collected from 133 respondents comprising revenue officials, administrative staff, business owners,
traders, and taxpayers within the local government area through the use of a structured questionnaire. Descriptive
statistics such as frequency distributions, percentages, and mean scores were used to analyze the research questions,
while the Pearson Product Moment Correlation (PPMC) was employed to test the hypothesis at a 0.05 level of
significance. The findings revealed that taxpayer registration has a significant positive effect on revenue generation
with a grand mean of 3.99. The study also found that tax assessment and collection procedures significantly influence
internally generated revenue with a grand mean of 4.02. Furthermore, the hypothesis test showed a strong and
statistically significant relationship between tax administration and revenue generation (r = 0.784, p < 0.05). The
study concluded that effective tax administration enhances internally generated revenue, improves financial
sustainability, and promotes efficient service delivery in local governments. The study recommended the adoption
of digital tax administration systems, improved taxpayer registration, enhanced staff training, stronger enforcement
mechanisms, and increased taxpayer education to strengthen revenue generation and support sustainable grassroots
development.

Funding: This is a self-funded research

Conflict of Interest: The authors declare no conflicts of interest.

Ethics Approval: Not_applicable

Data Availability: Data will be made available upon reasonable request

AI-Assisted Writing: No AI tools were used in the preparation of this manuscript.