Local government sources of revenue can best be improved through?

Analyze the question: The question asks how a local government can best improve its own revenue (internally generated revenue).

Concept: Local governments in Nigeria get money from several sources:

• Statutory allocations from the Federation Account
• Rates (tenement rates, market stalls, etc.), fines, fees, licences
• Earnings from local enterprises and investments

Some items are not within a local government's power:

• Import duties are collected by the Federal Government (Customs), so B is wrong.
• Schools (A) are mainly a service, not a major revenue earner. Primary education is funded and managed through state and federal agencies, so this does not boost revenue best.
• Housing units (C) is mainly a state or federal function, and it needs heavy capital that local councils lack.

Solution:

• Cottage industries (D) are small-scale, low-capital businesses such as weaving, pottery, and food processing. A local government can set them up or encourage them. They create jobs and income for residents, which widens the tax base. They also generate revenue through levies, licences, and fees. This is the most realistic way for a local council to improve its revenue.

Answer: D. cottage industries

Tip: In Government questions on local revenue, eliminate anything that is a Federal function, such as import duties, customs, and currency. Choose options that match local, small-scale, community-level activity.