One of the fastest way of achieving national development is through a world class decentralization processes. The decentralization systems in this country face series of challenges and notable among these challenges is the mismanagement and misappropriation of internal generated funds as a result of factors including the over-dependency of the various MMDAs on the Centralized Common Fund.
Many reports had indicated that effective mobilization of IGF would be sufficient to support the local development without dependency on Common fund. There have been numerous factors accounting for the low mobilization of IGF at district level. These include over reliance on Common fund, poor data on ratable items by the districts, lack of skilled staff to mobilize IGF, series of loop holes in mobilization and utilization of IGF, poor client relations and lack of public participation, transparency and accountability in IGF management.
A sustainable approach and solution to these problems can do a lot good toward the development of this country. One of the strategies to curb this challenge is the involvement of the banking sectors in IGF generation and mobilization. Some institutions, especially the hospitals, are engaging banks in providing solutions to major problems they faced with their IGF and are recording remarkable impacts and improvement. On the other side, these banks are expanding and extending their banking services as they provide necessary support to these institutions.
The banks have potential of using technologies to track all ratable properties within the district and efficiently generating data to the District Assembly on estimate of total revenue expected within a specific period. Some MMDAs hired consultants to aid them with data generation on ratable properties at a huge cost with little impact. The banks, in order to maximize profits and improve their relation with MMDAs toward IGF mobilization, will do this at a minimal cost.
The banks have reliable way of collection of revenue with minimal leakages while generating reliable and accurate report on IGF mobilization to track defaulters. Most revenue collectors due to their familiarity and closeness with clients have compromised the mobilization of generated funds. The banks can cure these discrepancies.
Most of the people hired to collect IGF do not have the confidence to approach agencies and institutions for the collection of rates. Others lack the required education and knowledge to cooperate and partner with clients in collection of rates. The banks can be reliable to recruit and provide the necessary training to enrich their staff in providing quality client services and partnership in the collection of rates. The banks also can be relied to make IGF generation transparent, accountable and win the trust of the public.
The banks can use this service to make banking services available and nearer to people in the communities. This has a potential of enhancing and improving economic development at the local level. The banks can also use this opportunity to exploit hidden resources and create sustainable asserts to enhance profits of the bank. The banks can also provide sustainable support and loans to the various Assemblies in carrying their activities to produce sustainable development for the local people. Banks bring development and people need the bank to develop their ideas into realities.
It is time the banking sectors extend their services in aiding government agencies to generate and effectively mobilize their IGF to support the development of this country.