ABSTRACT 

Local government arc faced with varieties of difficulties to SQL! rce adequate revenue from federal government, state government and the population in its locality; such problems are cogwheel to the smooth running of local government administration. The machine lT put in place for collection of  is inadequate hence, most of the government money is not collected and this is in case of the internally generated funds. That is why, there is need to review the problems and prospects of revenue generation local government in Nigeria. Therefore, the study seeks to achieve the following: To identify the problems arid prospects of revenue generation in local governments in Nigeria using lkvuano L.G.A as a case study. • To examine the processes involved in generating revenue in the local government areas. • To ascertain the efforts being made by the local governments towards boost •its revenue generation. data were collected from both primary and secondary source and the analysis is through descriptive and inferential statistical methods. The descriptive analysis involves the use of percentage, tabulation and counts while inferential statistical method employs chi-square. The following findings were reached from the data analysis and hypothesis testing. • There are laid down procures for collection of revenue in Ikwuano local government area. • There are internal put in place to ensure effective utilization of revenue generated. • Keeping of appropriate tax payers nominal roll and record. The study then recommend;, • Supply of social and economic services • 'Staff motivation • Revenue management • Loyalty of tax payers • Prospects • Fiscal autonomy of local government  • Decentralization to encourage stronger local governments • Increase revenue allocation base of local governments from the federal governments.