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The Problem Of Effect Utilization Of Revenue Available To Local Government In Nigeria

Nigeria as a sovereign nation operation a federal system of government of government i.e. the federal government, state government and local government council. Onwo (1992) observed that each level of the three tiers of government derived its power not from the magnanimity of the control government but from the constitution, each level local government has defined responsibility assign to it by the constitution. The implication of this is that the three segment of government are mutually interrelated in a unified effort to make life worth-while for the masses.


Title page




Table of Content



1.1 Background of the Study

1.2  Statement of the Problem

1.3 Purpose of the Study

1.4 Significance of the Study

1.5 Delimitation Limitation of the Study

1.6 Research Questions

1.7  Definition of Terms



2.1 Theoretical Frame Work

2.2 Brief History of Aninri Local Government

3.3 Function of Local Government Councils

2.4 Source of Revenue to Local Government in Nigeria

2.5 Summary of Aninri Government Recurrent Revenue and Expenditure

2.6 The Problem of Effective Utilization of Revenue of Local Government

2.7 Impact of the Problem Effective  Utilization of Revenue Available to Local Government

2.8 Solution, Way Forward to the Problem of Effective Revenue    utilization



3.1 Research Design and Methodology

3.2 Sources of Data

3.3 Area, Location of Study

3.4 Population of the Study

3.5 Sample and Sampling Techniques

3.6 Establishing the Validity of the Instrument

3.7 Establishing the Reliability of the Instruments

3.8 Method of Data Analysis


4.1 Data Presentation and Analysis


5.0 Summary, Conclusion and Recommendations

5.1 Summary of Findings

5.2 Recommendation

5.3 Conclusion





Aninri local government area was created out of  awgu local government in October 1996 by the late head of state general sani abacha. As one of the new local government council, it is facing a very serious crisis of development since its creation. Some problem facing the council include: insufficient office accommodation, staff quarters and office infrastructure. These  problems seem to be insurmountable.

Indigenes of the local government are desirous of enjoying modern facilities improved means of transportation, such as good road net work and mass transit transport service. Theses desire are in line with stated objective of the local government such as good road network, provision of health service such as maternity home, health centre, sanitization, provision of primary education and many others. As sponsor by the federal military government. The federation(Nigeria) years book of 1983, outlined the aims of the local government system is to make appropriate service and development activities, response to local wish and needs by delegating authority to local representation bodies.

They citizen expect the council to excel in development activities. They would like to please  the community or committee I the local government are through the provision of functional feeder road and public utilization.

The council administration in the other hand complains of inadequate finance to meet up with numerous responsibility yearning for attention. According to the guidelines for local government reforms or 1976, it must be recognized that if meaningful local government is to be expected in Nigeria, much larger financial resources are needed, they also complain that staff salaries alone drain a high percentage of the monthly allocation. Financial expert postulates that money is at the centre of development projects. Acquisition and proper accountability of funs are the pivot upon re revolves.

Adedeji(1979) capped it all when he declared that the success or failure and the effective and ineffectiveness of local government depend on the financial resources available to the individual local government and the way theses resource are utilized.

From the foreign it seen that an empirical study into the revenue base of the local government system at this harsh economic period is not only useful but very vital

It is therefore against this background that this project work is being of revenue with a view to discovering the problem of effective utilization of revenue available to local government with particular reference to aninri local government area of Enugu state.


The relevance of the local government council as the government at the grass root level is measured by the quality and quantity service rendered to the rural driveller.

For the council to render meaningful service, in form of provision of basic amenities, construction and maintenance of road, creation of employment opportunities for the citizen and pay staff salaries as and when due, money is undoubtedly required.

Without the availability of revenue, a local government council will not only be incapable of serving the people but will undoubtedly crumble. It therefore follow that for the local government to discharge its statutory functions effectively, it should not only be adequately funded but such fund should be efficiently applied.

  1. One of the fundamental problem in local government financial administration is the issue of effective utilization of revenue available to the local government. Aninri local government council may have tits unique problem that militate against its financial administration.
  2. The problem of delay in payment of federal and local government grants to the local authorities.
  3. The problems of accountability in the local government council.
  4. Another problem is that of ineffective financial control and government both internally and externally
  5. Fifthly, the problem of financial mismanagement and embezzlement of available funds in local government council.

Finally, the problem of corruption as stated by oluwole (2000) militates against the utilization of local government revenue.


The central focus of the study is to critically analyze the problem of effective utilization of revenue available to aninri local government area as a case study.

  1. The study is meant to identify the major revenue sources available to local government
  2. To ascertain the problem that confront the council administration in utilizing revenue for their service.
  3. To find out whether or not the revenue is adequate for the council expenditure
  4. To investigate the system of financial control in the local government council.


The significance of human endeavor is measured by its relevance to solving human problem. Therefore, the significance of the study is measured by its relevance to solving the problem of effective utilization of  revenue available to local government in Nigeria.

The project will be of benefit, first and foremost to the aninri local government administration, as it will expose to them potential sources of generating of revenue internally.

Secondarily, it will help the council to strength its financial base as this study would highlight some identified problem hampering the utilization of revenue in the council.

Thirdly, it will also be useful to the indigence of aninri local government to co-operate with local council administrator to enable them build a viable local government by paying their taxes and rate promptly.

Fourthly, the project with be useful to various institution especially control university, for gaming grater knowledge and understanding of the problems of effective utilization of revenue available to local government.

Finally, the project will be useful to the general public, organization companies etc that may have interest in the project.


I delimitation(scope) of the study: this is centered on the problem of effective of revenue available to local government in Nigeria but due to the wide or vast nature of Nigeria, the researcher now choose aninri local government as a case study to deal with this particular problem in other local government in Nigeria.

Limitation (constraints) of the study: in this effort of carrying out this research bathe researcher was faced with the problem of time, finance and visitation of aninri local government. The case study of the research work.

The researcher being a student, found it difficult to get extent out of the school premises and the time frame was so limited in carrying out the research work. Also, the distribution and collection of the questionnaire to the staff of aninri local government was not easy for the researcher as the respondent were not always available.

The study was carried our under a lot of constraint. The class work and financial constraint were limitations which made it uneasy for the material to be reading available at the appropriate time.


In the effort of carrying out this research, the following question were formulated:

  1. Are you aware of the constitutional provision of revenue source to the tiers of government in Nigeria?
  2. By what has aninri local government planned the expenditure of valuable revenue:
  3. What system of financial control measure is used by council administrations?
  4. Has the utilization of the revenues available to aninri local government produced positive or negative effects.

1.7 DEFINITION OF TERMS Some concept and term require proper explanation of definition to enhance our understanding of the theme where necessary opinion of scholar will be cited to illustrate the term.


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