SIGNIFICANCE OF INTERNAL REVENUE GENERATION IN LOCAL GOVERNMENT SUSTENANCE (A STUDY OF BOSSO LOCAL GOVERNMENT)

State governments have set up internal revenue boards in collaboration with local government to boost their revenue profile. However, despite the revenue accruable to the local government from the statutory federal allocation as well as its internally generated revenue, local government still suffers from inadequate developmental projects and non-availability of funds to cover the basic needs of the local government area. This study aimed to assess the Significance of Internal Revenue Generation in Local Government Sustenance focusing on Bosso Local Government as a study area. Specifically, the study examined the level of internal revenue generation in Bosso local government; determined the impact of internal revenue generation on effective administration of Bosso local government; determined the impact of internal revenue generation on effective service delivery in Bosso Local government; and also determined the best approach of improving internal revenue generation for sustainability of Bosso Local government. Structural Functionalism Theory and Theory of Fiscal Federalism were adopted as the theoretical framework. Taro Yamane formula was used for the selection of 176 respondents out of 315 total population drawn from finance and account department, Revenue Collectors and personnel & administrative department in Bosso Local government. Findings of the study revealed that Internal revenue generation does not have any significant impact on effective administration of Bosso local government. Similarly, it was discovered that Internal revenue generation does not have any significant impact on effective service delivery in Bosso Local government. The study thus recommended among others that Local Governments should show some degree of accountability and honest on the revenue collected to make citizen understand the connection between tax revenue and local government sustenance. This can be achieved when tax laws, regulation, procedures and administrative guideline are made public.