TABLE OF CONTENTS
CHAPTER
ONE
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 LIMITATIONS OF THE STUDY
1.6 RESEARCH QUESTIONS
1.7 DEFINITION OF TERMS
REFERENCES
CHAPTER TWO
LITERATURE REVIEW
2.1THEORETICAL
FOUNDATION OF THE STUDY
2.2 DEFINITION OF LOCAL GOVERNMENT COUNCILS
2.3 FUNCTIONS OF THE LOCAL GOVERNMENT COUNCILS
2.4 SOURCES OF REVENUE TO LOCAL GOVERNMENT
2.5 THE CHALLENGES
OF EFFECTIVE UTILIZATION OF REVENUE OF
LOCAL GOVERNMENT
2.6 IMPACT OF THE
CHALLENGES OF EFFECTIVE UTILIZATION OF
REVENUE AVAILABLE TO LOCAL GOVERNMENT
2.7 SOLUTIONS OR
WAY FORWARD TO THE PROBLEMS OF EFFECTIVE
REVENUE UTILIZATION
REFERENCES
CHAPTER
THREE
3.1 RESEARCH
DESIGN AND METHODOLOGY
3.2 SOURCE OF DATE COLLECTION
3.3 AREA/LOCATION OF THE 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
3.8 METHOD OF DATA ANALYSIS
REFERENCES
CHAPTER
FOUR
4.1 DATA PRESENTATION AND ANALYSIS
CHAPTER
FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
SUMMARY
OF FINDINGS
5.2 RECOMMENDATION
5.3 CONCLUSION
BIBLIOGRAPHY
QUESTIONNAIRE
APPENDIX A
CHAPTER ONE
1.1 BACKGROUND
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.
Irepodun local government, as one of the local government council in
Kwara State, it is facing a very serious crisis of development since its
creation. Some problems facing the council include: insufficient office
accommodation, staff quarters and office infrastructures. 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 network and
mass transit transport services. These desires are in line with stated
objectives of the local government such
as construction and maintenance of
roads, provision of health services such as maternity homes, health centers,
sanitization, provision of primary education and many others.
The federation (Nigeria) years book of 1983, outlined the aims of the
local government system in the country. According to that document, one of the
cardinal aims of the local government system is to make appropriate services and
development activities, responses to local wishes and needs by delegating
authority to local representative bodies.
The citizens expect the council to excel in developmental activities.
They would like to please the community or communities in the local government
area through the provision of
functional feeder roads and public utilizations.
The council administration in the other hand complains of inadequate
finance to meet up with the numerous responsibilities 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
experts postulates that money is at the center of developmental projects.
Acquisition and proper accountability of funs are the pivot upon revolves.
Adedeji (1979) capped it all when he declared that the success or failure and
the effectiveness and ineffectiveness of local government depend on the
financial resources available to the individual local government and the way
these resources are utilized.
From the foregoing, it seems 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
undertaken with a view to discovering the problems of Effective Utilization of
Revenue Available to Local Governments with particular reference to Irepodun
Local Government Area of Kwara State.
1 .2 STATEMENT
OF THE PROBLEM
The relevance of the local government councils as the government at the
grassroot 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. Irepodun
Local Government council may have tits 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
PURPOSE
OF THE STUDY
The central focus of the study is to critically analyze the problems of
effective utilization of revenue available to Irepodun 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 confront 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.
1.4 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 Irepodun
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 Irepodun 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
Caritas University, 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.
1.5 LIMITATIONS
OF THE STUDY
i. Delimitations (scope) 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 Irepodun Local Government as a case study to deal with
this 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.
ii. Limitations (constraints) of the study: In the 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 exeat out of the school premises and the time frame given
was so limited in carrying out the research work. Also, the distribution and
collection of the questionnaire to the staff of Irepodun Local Government was
not easy for the researcher as the respondents were not always available.
The study was carried out under a lot of constraints. The class work
and financial constraints were other limitations which made it uneasy for the
materials to be ready available at the appropriate time.
1.6 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 Irepodun 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 Irepodun Local Government produced
positive or negative effects?
1.7 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 orientedness. In our context, it is used to describe
political programmes aimed at betternece 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.
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