The Impact of E-Governance on Revenue Collection in Nigerian Local Governments: A Study of Abuja Municipal Area Council
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Background of the Study
The adoption of e-governance has revolutionized public administration globally, enhancing transparency, efficiency, and accountability in government processes. In Nigeria, the application of e-governance in revenue collection has gained traction, particularly in local governments. This approach leverages technology to streamline revenue collection processes, reduce corruption, and improve service delivery. Abuja Municipal Area Council (AMAC), as the administrative hub of the Federal Capital Territory, provides a compelling case for examining the impact of e-governance on revenue collection.
E-governance involves the use of digital platforms to manage government operations, including tax collection, billing, and reporting. Research indicates that e-governance reduces human interference, which is a major contributor to revenue leakages in traditional collection systems (Obi & Nwachukwu, 2023). By automating processes, local governments can track revenue sources more accurately, enhance compliance, and ensure timely remittance of funds.
Despite these potential benefits, the implementation of e-governance in Nigerian local governments faces challenges such as limited infrastructure, inadequate technical capacity, and resistance to change. The Abuja Municipal Area Council has made significant strides in adopting e-governance tools, but its effectiveness in boosting revenue collection remains underexplored. This study seeks to assess the impact of e-governance on revenue collection in AMAC, identifying success factors and areas for improvement.
Statement of the Problem
Revenue collection in Nigerian local governments has historically been plagued by inefficiencies, corruption, and lack of accountability. These issues often result in significant revenue leakages, limiting the capacity of local governments to deliver essential services. Traditional revenue collection systems in the Abuja Municipal Area Council have been criticized for their lack of transparency and inefficiency (Ibrahim et al., 2024).
The introduction of e-governance was expected to address these challenges by automating processes and reducing human interference. However, the adoption of e-governance in AMAC has faced obstacles such as inadequate digital infrastructure, lack of skilled personnel, and resistance from stakeholders accustomed to manual processes. Furthermore, the limited integration of e-governance systems with existing financial management frameworks has raised concerns about their effectiveness.
This study aims to evaluate the impact of e-governance on revenue collection in AMAC, exploring its successes, challenges, and potential for scalability across other local governments in Nigeria.
Objectives of the Study
- To assess the effectiveness of e-governance in enhancing revenue collection in Abuja Municipal Area Council.
- To identify challenges associated with the implementation of e-governance in AMAC.
- To propose strategies for improving e-governance adoption in revenue collection.
Research Questions
- How effective is e-governance in enhancing revenue collection in AMAC?
- What challenges hinder the successful implementation of e-governance in AMAC?
- What strategies can improve the adoption of e-governance in revenue collection?
Research Hypotheses
- E-governance significantly improves revenue collection in Abuja Municipal Area Council.
- Challenges such as inadequate infrastructure and resistance to change hinder the effectiveness of e-governance in AMAC.
- Enhanced adoption of e-governance will significantly boost revenue collection in AMAC.
Scope and Limitations of the Study
This study focuses on the impact of e-governance on revenue collection in Abuja Municipal Area Council. It will evaluate the effectiveness of digital systems, challenges in implementation, and their potential to enhance local government revenue. However, the study is limited by its reliance on secondary data and the availability of comprehensive records on revenue collection in AMAC.
Definitions of Terms
- E-Governance: The use of information and communication technology (ICT) to improve the efficiency, transparency, and accountability of government processes.
- Revenue Collection: The process of gathering income from taxes, levies, and other sources by government authorities.
- Digital Infrastructure: The physical and digital resources required to implement e-governance systems, including software, hardware, and internet connectivity.
- Revenue Leakages: Loss of government revenue due to inefficiencies, corruption, or mismanagement.
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