EFFECT OF TAXATION ON REVENUE GENERATION OF EKITI STATE LOCAL GOVERNMENT (A CASE STUDY OF ADO LOCAL GOVERNMENT, ADO EKITI, EKITI STATE)

This study examines the effect of taxation on revenue generation in Ekiti State local government, focusing specifically on Ado Local Government Area, Ado Ekiti. This study adopts a cross-sectional survey research design, chosen for its effectiveness in gathering primary data across sections and ensuring the collection of comprehensive, accurate data on the variables of interest. The research population consists of 60 staff members within Ado Local Government, Ado Ekiti, Ekiti State, from which a sample size of 52 was calculated using Taro Yamane’s (2019) formula for finite populations. Data were collected through a questionnaire incorporating both closed-ended and open-ended questions to provide a detailed understanding of respondents' perspectives. Responses were analysed using Microsoft Excel and evaluated through the Chi-Square statistical method, with a 5% error margin and a 95% confidence level guiding hypothesis testing. The findings that taxation plays a vital role in revenue generation for Ado Local Government, with property taxes, business permits, and market levies identified as primary sources of income. Despite this, challenges such as tax evasion, insufficient public education on tax obligations, weak enforcement, and corruption within tax administration processes significantly hinder revenue optimization. The reliance on federal allocations rather than internally generated revenue underscores the need for a more robust, self-sufficient taxation system. Additionally, the lack of clear communication about tax policies contributes to non-compliance, highlighting the importance of strategic improvements, including public awareness campaigns, stricter enforcement, and capacity building for tax officials. These enhancements are essential for fostering effective revenue generation and sustainable local governance.