This study Evaluated Internal Revenue Generation in Sabon-Gari and Giwa Local Governments (2009-2013). The problem investigated revolved around taxable capacity, low yield of IGR and defective strategy for collection. The major objectives of the study are to determine the viable taxable capacity in the Local Governments, and to suggest different ways on how the local governments can improve their IGR towards meeting statutorily assigned functions. The Canon of Taxation by Adam Smith, (1776) was used to provide a framework within which the revenue collection in Sabon-Gari and Giwa local government can be based. Data were collected using structured questionnaire and structured interview.
Quantitative data were analysed using frequency counts and percentages while the chi-square was used to test the hypotheses with SPSS version 20.0. The study established that Sabon-Gari and Giwa local government have too much depended on external sources of revenue, and this has affected their efforts to initiate and look inward to adequately exploit their existing internal revenue sources and to explore new sources, which has resulted to the low yield of IGR and that Sabon-Gari and Giwa local governments IGR strategy is essentially not effective.
The study recommends among others that for enormous yield of IGR, Sabon-Gari and Giwa local governments should innovate a strategic mechanism that will enforce the full tap of existing revenue sources, and also exploit new avenues of generating revenue internally through financial investment like entering into partnership with private individuals and organizations, commercial farming, animal husbandry, tricycling transportation (Keke-Napep) building of corner shops, pure water/ yoghurt and block making industry.
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