Local government is that level
of government nearest to the people. It is said to be corner stone of the
government system in any country.
The federal government believes
that it is only through an effective local government system that the human and
material resources of the nation could be mobilized for local government with
its objectives is aimed at standard and stabilizing the function and financial
resources at the local government level and to encourage initiatives and
The basic procedure of local
government is revenue mobilization and its effective utilization especially
more that there is no comprehensive study on sources and uses of funds in the
The current trends of
inefficiency and ineffectiveness of the local authorities should be considered
with the frame work of available resources.
If the financial resources of
the local of the local government are boughant and viable than this will go a
long way in communicating strength and solidity to offer superstructure of
There are no discipline on the
part of the leadership, management and staff of the local government in
collecting revenue efficiently and also try to put them into effective use.
In the tight of the above, the
researcher major objectives as regards this research work was to identity those
source of finance available to local government, their uses and problem
associated with their finance in Nigeria using Ezeagu central Local government
development Council ad my case study.
The problem associated with
sources, uses of local government finance was critically examine in this
In handling the above research
work primary and secondary data was used. The sources of primary data was by
the use of questionnaires and oral interviews, while the secondary data sources
are text books.
The analysis of data was based
on percentages. It is on the strength of the finding that recommendation and
conclusion was made.
TABLE OF CONTENTS
BACK GROUND OF THE STUDY
STATEMENT OF PROBLEM
OBJECTIVE OF THE STUDY
STATEMENT OF HYPOTHESIS
SIGIFICANCE OF THE STUDY
DEFINITION OF TERMS
REVIEW OF RELATED LITERATURE
THE MEANING OF LOCAL GOVERNMENT
FUNCTIONS OF LOCAL GOVERNMENT
SOURCES OF REVENUE AVALIABLE TO LOCAL GOVERNMENT AUTHORITIES
EXTERNAL ATTRIBUTES OF LOCAL LGOVERNMENT FINANCE
THE IMPORTANCE/USES OF REVENUE GENERATED BY LOCAL GOVERNMENT
PROBLEMS OF LOCAL GOVRNMENT FINANCE APPROACHES OF THE IMPROVEMENT OF LOCAL
RESEARCH SESIGN AND METHOD
SOURCE OF DATA
POPULATION OF STUDY
VALIDITY AND RELIABILITY OF THE MEAUSRING INSRUMENT
PRESENTATION OF DATA
INTERPRETATION AND ANYALYSIS OF DATA
TESTING OF HYPOTHESIS
FINDINGS, RECOMMENDATION AND
An examination of the sources
and uses of local government fund in Nigeria
(200 – 2004). A case study of
Ezeagu Central Local Government Development council).
Local government is that level
of government nearest to the people. It is said to be the cornerstone
government system in any country.
The basic objective underlying
this study or this research work was to identify those sources of finance
available to the grassroot government, their uses and problems associated with
local government finance in Nigeria using Ezeagu central local government
development council as my case study.
This research has been
structural into five chapters to make for easy reading and comprehension.
The author, dealt with the bank
ground of the research work which gives an overview of the basic procedure of
local government revenue mobilization and its effective utilization.
She went further to the review
of related literature the author lay hands on various Journals news paper,
write various view as regard the sources and uses of local government fund in
Nigeria. It also consider the current trend of inefficiency and ineffectiveness
of local authorities.
Chapter three. Deals with
research design and methodology. Primary and secondary data are used
Chapter four is presentation of
data. The presentation interpretation, analysis of data and test of hypothesis
in chapter one are done in this chapter using chi-square method.
Chapter five, dealt with
findings, recommendation and conclusion. The authors finding is base on the
hypothesis reveals that revenue available to local government authorities
functions and the funds readily available to these council are also poorly
managed. It is upon- this findings that the author make recommendation and draw
1.1 BACK GROUND OF THE STUDY
The term Local government has
been defined by many scholars with different view as regards its development.
W.A. Robinson (2000) states that ‘Local government’ involves the conception of
territorial non-sovereign community processing the legal right and the
necessary organization to regulate right of its own affairs. This I turn
presupposed the control, Vis-à-vis participation in state affairs.
According to U.N. Akpan (1999), out of various possible conceptions of the
local level development, two have been particularly dominants in Nigeria since
the colonial time. The first was christened the indirect rule system and is
infact no other than a field administration model.
Gboyega Alex (1998), state that nation wide ordinance establishing the model
first in the Northern provinces and later in the southern provinces was
promulgated by the colonial government in 1916, two year after the analyation
of the Northern and Southern protectorates Indirect rule was actually the rule
by the British colonial officials through local chiefs in terms of its
philosophy and practice, the emphasis of their model was the colonial
regulation of conquered people and so did not encourage popular participation
and representation in the native authorities. It was therefore, strictly
different from the pre colonial structure of Government which emphasis balance
of power and popular participation. Indirect rule distorted these pre-colonial
institutions. The model was also not human development although it led to the
beginning of a net work of infrastructures of roads, schools and dispensaries,
through with the collaboration of native authorities, the colonial central
government and missionaries.
Local Government has sources of
revenue of their own such as community taxes and rates, Licenses and fees,
earnings and sales, Federal and state statutory allocation etc. After the
Second World War, the political development between Nigeria and /Britain led to
the abolition of the indirect rule system and its replacement which emphasized
full grown local government which was effuient particularly and relatively
autonomous. The eastern region was the fist to embark on the experiment on 1950
while the other regions followed in 1952. A few years after wards precisely in
1976, the federal military government announced the reforms of the nations
local announced the reforms of the nations local government system.
Essentially, the reform resuscitated the idea of participatory and autonomous
government which have access to resources both internally and externally to
improve the social the economic of the various communities. The question as to
why there was this sudden change of direction from at the earlier emphasis on
local rules through traditional rules and bureaucrat was carefully examined.
The request for autonomy becomes administration particularly since 1970’s. The
anticipation of the autonomy came through the 1976 reforms. Actually 1979
constitution made the anticipated a reality, thus the period between 1976 to 1979
can be defined as the period when the idea of local government in Nigeria came
to include autonomy for the level of government.
However, the autonomy
expectedly remained circumscribed because of control Viz; financial,
administration, judiciary, auditory and even miscellaneous which the various
state governments exericed in local governments exericed in local government.
The most prominent control is on rinace which affects local government
The term “finance” encompases
personal finance, business finance, business finance and public finance.
According to mautia joy (2001)
finance was defined as the art of providing the means of payment or as a body
of facts, principles and theories dealing with the raising and using of finds
by individual, business, firms and the government. Our interest in this project
lies in the problems of rising and using of funds by the local government will
emphasis of Ezeagu Central Local government development council.
Thus, a Uniform system of local
government through the guidelines for the local government went on to identify
the executive functions of local government.
According 1999 constitution
section 7 sub section 1 (b) (e) (j) (i) (vi) of Nigeria constitution states
various ways the local government can source its funds, although these ways has
remained grossly in adequate for maintaining capital and recurrent council.
Lack of adequate finance and subvention has been of the defects responsible for
Until the revenue allocation
act was biplated and received in 2002 by the revenue allocation fiscal
commission, at he federal government has operated a system of block grants and
subventions to local government througfh state government. Since the money
coming from the federal account to the joint state and Local government did not
Is there and financial authority of the local government?
1.5 STATEMENT OF
To guide research, the following hypothesis was formulated.
Ho: The available funds are able to meet the
expectations and serve
of the local government.
The available fund are not able to meet the expectations and services of the
Ho: the fund available to the local government
authorities are not
The fund available to the local government authorities are not prudently
Ho: The Local government is under fundered
partly. From the
H1: The Local government is under fundered
partly. From the
Ho: There is financial autonomy of the local
H1: There is no financial autonomy of local
OF THE STUDY
The factors militating against a successful performance by the local government
authorities may be dual in native. They be managerial and financial in native.
They be managerial and financial in native. Finance is an important part of
most organizations decision, and a clear understanding of the way in which
decisions are made is essential if the role finance is to be seen in its true
Finance is very crucial because
if influences planning and achievement pf set objectives.
Local government being the
level of government nearest to the people is the corner stone of the government
system in any country. If the financial resources of the local goal area
buoyant and viable then this will go a long way in community strength and
solidarity to other super structures or government authorities.
The important of local
government in the nation must be recognized. It is not a profit oriented
organized. But a service oriented one and this will surely affect its revenue.
To respective local governments, federal presence level of government.
It has been notice that the
allocation to the local government have not been steady. The flunctuational of
the statutory allocation always put the local government of their budgets
estimate for any given year. In most financial year the realization on revenue
is spent on recurrent expenditure for running the council while little or
noting is left for capital expenditure. This accounts for the absence of
development projects by various local government will be elaborated in table in
LOCATION AND AREA
Ezeagu Central local Government
Development area is one out of seventeen local government area and thirty nine
development centers of Enugu state, ie the total of fifty six local government
area in Enugu state. It occupies a geographical western position in the state.
It is located at Mgbagbuowa and also surrounded by Ezeagu South, East and North
West local Government area.
STATEMENT OF PROBLEMS
The basic problem of local government includes:
The problem of revenue mobilization and its effective utilization.
Accountability of funds and properties of the Local government.
The problem of effective displine leadership in the local government.
1.3 OBJECTIVES OF
To examine the problems in local government finance and establish the factors
responsible for poor revenue generation and ineffective execution of the local
government programs and project.
To identify the problems especially as it affect finance with a view of making
adequate recommendation for improvement
Are the availability of funds able to meet the expectation and services of the
Are the funds available to the local government authority prudently managed?
The Significance of this study is there, to find ways of improving local
government finance for effective channeling, implantation and executive of the
program with in Ezeagu Central local government Council as my area of concern.
DEFINITION OF TERMS
Local Government/Authority: The third tier
system of government after the state federal government.
Finance: - A body of fact with the raising of fund by local government
authorities it encompass personal, business and public finance.
Local levies: - these include all the internal source of revenue collected
within the local government area.
Local Government Allocation: The percentage of funds, the Local authorities
gets from the national fund.
TERMS AND CONDITIONS APPLY
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