CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

The last three decades have witnessed unprecedented global transformation occasioned by a chain of innovations and paradigm shifts like liberalization, privatization etc, with enhanced Information and Communication Technologies (ICT) serving as the major catalysing factor (Achimugu et al, 2013).

The emergence of information communication technologies has brought a lot of changes to the way things are done in the world over. These changes are across the spectrum; the way private companies do business, the way universities do things, the way governments provide services to their citizens and the way they interact with stakeholders at large (Nkwe, 2012).

The world over, there has been a paradigm shift where governments have realized the importance of Electronic Government (otherwise known as e-government) as a strong tool for public-sector reform in search of excellence. Governments have understood and appreciated the contribution of e-government to the government agenda in contrast to the traditional paper-and-file approaches often adopted in managing businesses. The Republic of Uganda, for instance, has a strong belief that ICT has the potential not only to revolutionize the way government operates, but also to enhance the relationship between government to business (G2B), government to government (G2G) and within government to citizen (G2C).

It is in keeping with this line of thought that (UNPAN, 2005) observes that almost all governments in the world have embraced one form of e-government or another (Ifinedo, 2008). Is however of the opinion that a majority of African countries are just beginning to understand the importance of such a concept in governance. Hence, a very poor e-government ranking. Nigeria has an e-government index ranking of 0.243 as against the world average of 0.414, meaning it is yet to be positioned to harness the limitless opportunities available in e-government to reinvent governance at all levels (Achimugu et al., 2013).

E-governance, which is a paradigm shift over the traditional approaches in Public Administration, means rendering of government services and information to the public using electronic means. This new paradigm has brought about a revolution in the quality of service delivered to the citizens. It has ushered in transparency in the governing process; saving of time due to provision of services through single window; simplification of procedures; better office and record management; reduction in corruption; and improved attitude, behaviour and job handling capacity of the dealing personnel in the developed countries (Monga, cited in Nkwe, 2012).

Revenue generation in Nigeria has been one of the topical issues in recent times especially with the drastically and phenomenal shift from agriculture to crude oil exportation. The occasional dwindle in the price of crude oil and the various predictions of the running out of oil wells in Nigeria in the near future time has rekindled government interest in agriculture and other non-oil sources of revenue to the country and its constituent states with their local government areas to reconsider their internal revenue generation (Nnanseh and Akpan, 2013).

The emphasis has always been on how to boost internally generated revenues (IGR) so as to be less reliance on oil and other statutory allocations to states and the local government areas. Besides, it has been a popular believes that a state with strong internally generated revenue can cater for the social and infrastructural needs of its citizens (Nnanseh and Akpan, 2013).

Whether in fact the use of e-government affects internally generated revenues as well as transparency and accountability in states and local government administrations in Nigeria positively or negatively in practice, is an empirical question that remains open. The undertaking of this study will therefore explore the effect of E-government on Internally Generated Revenues with a special reference to Egbe/Idimu Local Council Development Area (LCGA).

1.2   Statement of the Problem

Despite the popularity, potency, and precision of e-government, it is yet to be adopted and explored in Nigerian governance system. A visit to the government departments in Nigeria is a nightmare; it is characterized by a lot of paper work, long queues, bureaucracy, cramped spaces and a lot of frustrations. With the growing demands of citizens and changing global rules and regulations, the Nigerian government as a matter of necessity must explore a transparent and accountable medium to deliver its statutory mandate to its citizens at the right time and quality.

The link between e-government implementations and internally generated revenues (IGR) is generating some interesting debates. Many scholars have argued that e-government is still a new phenomenon. That it is still very much unclear and complex how it can boost revenue for states and local councils. On the other side of the swing, analysts and political watchers counter-argued that e-government has spin-off effects, and that the more ICTs are used for government businesses, the greater the impact on revenues, transparency and accountability (Nkwe, 2012; Kaaya, 2011; Bellamy and Taylor, 1998; Ebrahim et al., 2003).

The reliance on statutory allocation to perform basic functions by states in Nigeria is total. Many states rely almost exclusively on this handout from the federation account as basic operations cannot go on without the monthly allocations. This has partly helped government officials to pay little attention to growing the economic base that would help them to become independent (Agu, cited in Oseni, 2013). He went further to note e-government is yet to be incorporated in IGR planning and collection approaches. Officials rely mainly on physical visitation, memos and letters to notify tax payers. The taxes collected are mainly in cash thereby creating opportunities for embezzlement. These shortcomings often lead to multiple payments of tax and harassments.

At the local government level, internally generated revenue is the primary source of local government sustenance. But the capacity of local governments to generate revenue internally is one very crucial consideration for the creation of a local council. Local governments now face more challenges in terms of struggling to be less dependent on the center and the state for financial resources hence the need for them to place, as a matter of urgency, a topmost priority on their internal generation efforts.

The current structure for IGR across boards lack the capacity for revenue base data collection and analysis; lack register of revenue customers and information system; poor collection and analysis of performance data, lack performance evaluation against targets; poor method (being cash-based only) of generation; poor internal control and financial reporting; lack transparent accounting; lack a documented action plan for improving its collections; poor internal organizational arrangement for revenue generation among others (Eze, Omole, Onyinka and Okonji, cited in Nnanseh and Akpan, 2013). It is against this backdrop that this study aims to investigate the relationship between E-government and Internally Generated Revenues with a special reference to Egbe/Idimu Local Council Development Area (LCGA).

1.3   Objectives of the Study:

The main objective of this study is to examine the connection between e-government and internally generated revenues. Other specific aims are;

i.To determine the link between the adoption of e-government and internally generated revenues for local governments in Lagos State.

ii.To find out the effect of e-government and accountability in taxes and levies collection.

iii.To explore the effect of ICT adoption on enhancing states’ internally generated revenues in Nigeria.

iv.To investigate the nexus between e-government and corrupt practices in the Nigerian public sector.

v.To find out if e-government can foster efficient service delivery in governance.

1.4   Research Questions:

To achieve the stated objective the study will be guided by the following research questions;

1.Does e-government has any effect on internally generated revenues for local governments in Lagos State?

2.Will the adoption of ICT promotes accountability in taxes and levies collection and administration?

3.Can e-government reduce corrupt practices in the Nigerian public sector?

1.5    Research Hypotheses:

The under mentioned hypotheses will be subjected to statistical test in the course of the study;

Hypothesis 1:

Ho:    There is no significant relationship between e-government and internally generated revenues for local governments in Lagos State.

Hi:     There is a significant relationship between e-government and internally generated revenues for local governments in Lagos State.

Hypothesis 2:

Ho:    ICT adoption has no significant effect on accountability in taxes and levies        collection.

Hi:      ICT adoption has a significant effect on accountability in taxes and levies          collection.

Hypothesis 3:

Ho:    There is no significant relationship between e-government and corruption         in the Nigerian public sector.

Hi:     There is a significant relationship between e-government and corruption in the Nigerian public sector.

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