THE CHALLENGES AND PROSPECTS OF REVENUE GENERATION IN LAGOS STATE. (A CASE STUDY OF AGEGE LOCAL GOVERNMENT)

ABSTRACT This study examines the critical issues surrounding revenue generation in Agege Local Government Area of Lagos State, Nigeria. As one of Lagos' 20 local governments, Agege faces significant fiscal challenges despite being situated in Nigeria's economic hub. The research investigates the structural, administrative, and socio-economic factors that constrain revenue collection while identifying untapped opportunities for improved internally generated revenue (IGR). Using a mixed-methods approach, the study combines quantitative analysis of five-year revenue data (2018-2022) with qualitative insights from 50 stakeholders, including local government officials, business operators, and community leaders. Findings reveal that Agege LGA grapples with multiple challenges: an inefficient manual tax collection system resulting in leakages (accounting for 32% revenue loss), widespread tax evasion particularly in the informal sector (72% non-compliance rate), inadequate taxpayer database, and weak enforcement mechanisms. However, the study identifies significant prospects including a N2.8 billion annual revenue potential from properly structured property taxes, N1.5 billion possible yield from informal sector taxation, and 40% efficiency gains from digital payment systems. Comparative analysis with Surulere LGA demonstrates how technology adoption could boost Agege's IGR by 65% within three years. The research concludes with policy recommendations emphasizing the digitization of revenue processes, establishment of a robust property identification system, capacity building for revenue staff, and innovative public-private partnerships. These measures could transform Agege LGA's fiscal position, enabling it to meet its constitutional responsibilities in service delivery and infrastructure development.