The Problems Of Effective Utilization Of Revenue Available To Local Governments In Nigeria

ABSTRACT

The high rate of embezzlement, poor leadership, low rate of accountability, general laxity of the finance department and corruption in Nigeria Local Government, and Ilorin East  Local Government in particular really inspired me to work on this project topic:

THE PROBLEMS OF EFFECTIVE UTILIZATION OF REVENUE AVAILABLE TO LOCAL GOVERNMENT. In  doing this, secondary data were used. In organizing and presenting data collected, tables and percentages were used as well. The data analysis revealed that ineffective utilization of revenue in the local government had created a negative impact in Ilorin East Local Government Area of Kwara State.

The researcher therefore recommended that the revenue available to local government should be handle by honest and accountable personnel, those who posses sound knowledge about revenue generation and utilization. The outcome would be an effective and efficient management and utilization of local government revenue in such a way that would deliver the needed development.

TABLE OF CONTENTS

Title Page

Approval Page

Dedication

Acknowledgment

Abstract

Table of Content

CHAPTER ONE

INTRODUCTION

1.1Background of the Study

1.2Statement of the Problem

1.3Significance of the Study

1.4Purpose of the Study

1.5Limitation of the Study

1.6Definition of Terms

1.7Research Questions

CHAPTER TWO

LITERATURE REVIEW

2.1Theoretical Framework

2.2Functions of Local Governments Councils

2.3Sources of Revenue to Local Governments In Nigeria

2.4The problem of effective utilization of Revenue of Local Governments

2.5The impact of the problems of effective utilization of revenue available to local governments

2.6 Solutions/way forward to the problems of effective revenue utilizations

CHAPTER THREE

RESEARCH METHODOLOGY

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 Method of data analysis

CHAPTER FOUR

INTERPRETATION AND ANALYSIS OF FINDINGS

4.2 Data Presentation and Analysis

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1Summary of Findings

5.2Conclusion

5.3Recommendations

References

Bibliography

Appendixes

CHAPTER ONE

1.1 BACK GROUND OF THE STUDY

Nigeria as a sovereign nation operates a federal system of government i.e. the federal government, state government and the local government councils.

Onwo (1992) Observed that each level of the three tiers of government derive its powers not from the magnanimity of the central government but from the constitution; each level of government has defined responsibilities assigned to it by the constitution. The implication of this is that the three segments of governments are mutually interrelated in a unified effort to make life worth – while for the masses.

1 .2 STATEMENT OF THE PROBLEM
The relevance of the local government councils as the government at the grassroots level is measured by the quality and quantity services rendered to the rural dwellers. For the council to render meaningful services, in form of provision of basic amenities, construction and maintenance of roads, creation of employment opportunities for the citizens 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, follows 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 problems in local government financial administration is the issue of Effective Utilization of Revenue Available to the Local Government. Ilorin East local government council may have its unique problems that militate against its financial administration.

2. The problem of delay in payment of federal/state 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 management 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 Oluwale (2000) militate against the utilization of local government revenue.

1.3 SIGNIFICANCE OF THE STUDY
The significance of any human Endeavour is measured by its relevance to solving human problems. Therefore, the significance of the study is measure by its relevance to solving the problems of effective utilization of revenue available to local governments in Nigeria.

The project will be of benefit, first and foremost to the Ilorin East Local Government administration, as it will expose to them potential sources of generating of revenue internally.

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

Thirdly, it will also be useful to the indigenes of Ilorin East local government to co-operate with local council administrators to enable them build a viable local government by paying their taxes and rates promptly.

Fourthly, the project will be useful to various institutions especially Kwara State Polytechnic, Ilorin, Kwara State for gaining greater 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, organizations, companies etc that may have interest in the project.

1.4 PURPOSE OF THE STUDY
The central focus of the study is to critically analyze the problems of effective utilization of revenue available to Ilorin East local government area as a case study.

1.The study is meant to identity the major revenue sources available to local government.

2.To ascertain the problems that confronts the council’s administration in utilizing revenue for their services.

3.To find out whether or not the revenue is adequate for the council’s expenditure.

4.To investigate the system of financial control in the local government council.

1.5 LIMITATIONS OF THE STUDY

This is centered on the problems of effective utilization of revenue available to local government in Nigeria but due to the wide or vast nature of Nigeria, the researcher now chose Ilorin East local government as a case study to deal with these particular problems in other local government in Nigeria.

The study is also centered on the sources of revenue available to local government both the internal and external sources of revenue.

1.6 DEFINITION OF TERMS

Some concepts and terms required proper explanation or definition to enhance our understanding of the theme where necessary opinions of scholars will be cited to illustrate the terms.

Democracy

The Ancient Greeks defined democracy as a government of the people, by the people and for the people. This political arrangement allowed every adult male citizen to participate in government activities.

Dare (1981) Postulated that modern democracy is a system of government which gives to individual maximum freedom and periodical opportunities to choose their leader and programmes. Multiple party-systems are a vital characteristic of a democratic government.

Pragmatism The term pragmatism is derived from the Greek from which practical action arise. It could simply be referred to as philosophy or practical consequences or result oriented. In our context, it is used to describe political programmes aimed at better living standard of the masses.

Rural Development Rural development is a strategy designed to improve the socio-economic life of the rural dwellers. It involves extending the benefits of development to the less privileged in the society. When applied to local government councils as a third tier of government, in the county, it means conscious efforts by the government, to carry government programmes to the village level. In so doing, deliberate actions are initiated to improve the rural population.

Accountability Owing to the fact that local government provides local services like sanitation, education, transportation etc to the people of the area, it is logical that it is accountable to the local people within its area of jurisdiction.

This principle of accountability is better ensured by making local government or local government bodies elective institutions. If they function below expectation, they may be criticized by the people or voted out during the next elections. Absence of local accountability may make them indifferent and insensitive to the need, feelings and aspirations of the local people.

RESEARCH QUESTIONS In the effort of carrying out this research, the following questions were formulated:

1. Are you aware of the constitutional provision of revenue sources to the tiers of government in Nigeria?
2. By what means has Ilorin East Local government planned the expenditure of available revenue?
3. What systems of financial control measures are used by council administrators?
4. Has the utilization of the Revenue Available to Ilorin East Local Government produced positive or negative effects?

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