AN APPRAISAL OF REVENUE GENERATION AND EXPENDITURE SYSTEM AT LOCAL GOVERNMENT LEVEL: A CASE STUDY OF ENUGU SOUTH LOCAL GOVERNMENT AREA (2005 – 2009)
AN APPRAISAL OF REVENUE GENERATION AND EXPENDITURE SYSTEM AT LOCAL GOVERNMENT LEVEL: A CASE STUDY OF ENUGU SOUTH LOCAL GOVERNMENT AREA (2005 – 2009)
ABSTRACT
This research study is on the analysis of the appraisal of revenue generation and expenditure system at the local government level. In so doing the study looked into various sources open to the Enugu South Local Government – external and internal sources and the expenditure pattern too.
Primary type of data is in the form of interviews, questionnaires were used in the research work also secondary data sourced from textbooks newspapers; articles, seminars, government publications were used for the study. Percentages and correlation co-efficient were used in data analysis.
After conducting the research it was found that:
However the local government faces numerous problems in her course of revenue drive.
Based on these problems the researcher made some recommendations on how they can increase her internally generated revenue. Among the recommendation made includes the local government should endeavour to properly update her property valuation ledgers. Also the institution of revenue court to curb tax evasion in order to increase the revenue availability to the local government to enable her to provide necessary services to the inhabitant and this contribute to the development of the economy and economic growth in general.
Introduction 1
Literature Review 12
Research Methodology
Data Presentation
item by term 80
Summary of Findings, Conclusion and Recommendations
Bibliography 91
CHAPTER ONE
INTRODUCTION
A local government according to Odenigwe (1977) is a system of local administration under which local communities and towns are organized to maintain law and order, provide public amenities and encourage the cooperation and participation of the inhabitants in joint endeavour towards the improvement of their condition of living. It provides the communities with a formal organizational framework, which enables them to conduct their affairs effectively and regulate the actions of their members for the general public good. The question that readily comes to mind is the issue of development of local government in Nigeria up to date, which is critically examined below.
During the colonial masters, local government has been conceptualized in various forms such as divisional administration, field administration, local government (Olowu (1989), development administration and council manager system (Gboyega (1987). The indirect rule system of the 1900 and multi-fier 1905 were most dominant in Nigeria. The indirect rule system a field administration model was introduced in 1916 by a nation wide ordinance promulgated by the colonial government first in Northern provinces and later in the Western and Eastern provinces. A model known as native administration system comprises of four main independent bodies namely.
The system was a child of necessity as the British has to adopt the system due to circumstances beyond their control; such circumstances are shortage of British manpower to service the vast area acquired by them, the problem of communication and desire to control local resistance to foreign rule. The system didn’t encourage popular participation; the emphasis was on colonial regulation of conquered people. The system had relative success in some part of Nigeria, like in the North, then partially in the West but in the East it was not successful.
After the Second World War, there was political development inside and outside Nigeria, which led to the abolition of indirect Rule system and it was replaced by the British with tier local government system, which there was full-grown system that will be efficient, participatory and relatively autonomous (Olowu 1989). The Eastern region brazed the trial in 1950 followed by Western in 1952, lastly by Northern in 1954 in the East they produce three tiers structure namely the country, the district and the local government council and its autonomous of on another. Further reformed was carried out in 1955, 1958 and 1960.
Membership of these councils were democratically elected although some traditional rulers were nominated as members of the council. An elected chairman presided over council meetings but on ceremonial occasions.
In 1966, when the military entered the political arena, many regions were completely abandoned that democratic experience and replaced them with management committees. The military regime in the regions dismissed these management committees and appointed sole administrators. In early 70s some state government – namely, East Central, Rivers, South East and Mid – West went further to abolish local governments and replaced them with field administration known as Divisional Administration while in the Western states the old council management system was still functioning as before. Later in 1976 the nationwide reform on one local government administration.
In this 1976 local government reform, it was the most radical and significant in many respects. It creates a single tier multi-purpose structure throughout the country. It also defined local government administration, the objections, functions, financial resources with uniform standard and procedures. These reforms were subsequently incorporated into the 1979 constitution of the Federal Republic of Nigeria and it democratized the system with three years life span.
Grassroots development of local government suffered some reverse during the second republic from 1979 – 1983. The civilian governors merely increased the number of local government area from 301 to about 800 (Gboyega 1987) and appointed committees as caretaker to administer the councils. Most of these local governments were denied of their legitimate fund by their state governments. These funds source from statutory allocation. Even the state internal revenue, which supposed to be shared to this local government are even denied of. These states even went as much as encroaching some revenues that are supposed to be generating by these local government.
However, during the time of Babangida administration (1985 – 93) some administrative actions were taken which gave local government administration some lease of life. Separation of power becomes fully operational in local government administration. During this Babangida administration, the chairman and supervisory councilors were made the executive arm while the elected councilors were made the legislative of local government administrations. The departments of the local government are:
There is internal audit department, which the Director General of Audit for local Government provides continuous audit for local government administration. The functions of local governments have seen enlarged and categorized into exclusive and concurrent list. The organization of local government administration is in the hands of the councilors; this model was in existence in the North since 1950s.
This study is going to evaluate the revenue generation and expenditure and as well will unveil those untapped revenue sources open to the local government.
In developing country, some of the problems facing their local governments, as in Nigeria were how to improve the socio-economic statutes of its people to feel belonged which could help them to provide certain amenities to the citizen, like health centre, good roads, market recreational facilities and so on. These amenities if provided will help to improve the standard of living of the citizen.
On the other hand, if the local government could not provide these amenities it means that they are facing many problems, and some of these problems are:
These problems cause inefficiency and ineffective performance of the local government statutory duties to the citizen of the country.
This study is aimed at the following:
The significance of this study lies in the attempt to provide a blue print for checking cases of embezzlement and misappropriation of funds, which are posing serious problems to the progress and growth of our nation.
This research work will provide authentic information to the policy maker on the financial problems of the local government in Nigeria. Also it provides information to the local government on how to generate more funds internally.
Lastly, it will motivate the federal government on the need to increase the percentages allocation of the federation account to local governments.
This research work will cover Enugu South Local Government Area, which is one of the local governments in Enugu State. This local government is chosen because it is one of the oldest local government in Enugu province, which is then called Uwani Local Government. It is used as my case study because it will help me to gather information about the performance of local government in terms of generation of revenue and expenditure.
The study will also be restricted to the financial resources available to the local government which depends on how the staff of the local government are willing to release all he necessary information to the researcher, like monthly income and expenditure profile for the relevant year.
(a) H1: The local government is able to generate enough revenue resources to meet its expenditure budget.
H0: The local government is unable to generate enough revenue resources to meet its expenditure budget.
(b) H1 The use of taskforce made up of staff for the revenue drive yield more revenue for the local government.
H0: The use of taskforce made up of staff for the revenue drive does not yield more revenue for the local government.
(c) H1:: There is adequate checks and balances system in financial control within the local government.
H1: There is no adequate checks and balances system in financial control within the local government.
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THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
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Dollar conversion rate for Naira is 175 per dollar.
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ABSTRACT
This research study is on the analysis of the appraisal of revenue generation and expenditure system at the local government level. In so doing the study looked into various sources open to the Enugu South Local Government – external and internal sources and the expenditure pattern too.
Primary type of data is in the form of interviews, questionnaires were used in the research work also secondary data sourced from textbooks newspapers; articles, seminars, government publications were used for the study. Percentages and correlation co-efficient were used in data analysis.
After conducting the research it was found that:
- Little amount of revenue was generated internally.
- In the course of revenue drive taskforce comprising staff and council members yields more revenue to the local government.
However the local government faces numerous problems in her course of revenue drive.
- Inability to harness the entire revenue sources.
- Dishonesty among revenue agents.
Based on these problems the researcher made some recommendations on how they can increase her internally generated revenue. Among the recommendation made includes the local government should endeavour to properly update her property valuation ledgers. Also the institution of revenue court to curb tax evasion in order to increase the revenue availability to the local government to enable her to provide necessary services to the inhabitant and this contribute to the development of the economy and economic growth in general.
CHAPTER ONE
Introduction 1
- Background 1
- Statement of problems 6
- Objectives 7
- Significant of the study 9
- Scope and limitation of the study 9
- Hypothesis to guide the research 10
CHAPTER TWO
Literature Review 12
- Nature of Local Government 12
- How the local government come into existence 13
- Size, location and composition of the local government19
- Objectives of local government 22
- Functions of local government 25
- Problem of local government 31
- Local government revenue 33
- Internal revenue 33
- External revenue 35
- Local government expenditure pattern 36
- Internal audit and checks 43
- The role of internal Auditor 47
- Internal audit responsibility for monthly check 49
CHAPTER THREE
Research Methodology
- Brief social background of the local government 53
- Population of the study and sample selection 54
- Types of data used 56
- Instrument of data collection 56
- Method of data collection 57
- Method of data analysis 59
CHAPTER FOUR
Data Presentation
- Analysis of Hypothesis 61
- Comparative analysis of revenue and expenditure –
item by term 80
CHAPTER FIVE
Summary of Findings, Conclusion and Recommendations
- Summary of findings 85
- Conclusion 87
- Recommendations 88
Bibliography 91
CHAPTER ONE
INTRODUCTION
- BACKGROUND OF STUDY
A local government according to Odenigwe (1977) is a system of local administration under which local communities and towns are organized to maintain law and order, provide public amenities and encourage the cooperation and participation of the inhabitants in joint endeavour towards the improvement of their condition of living. It provides the communities with a formal organizational framework, which enables them to conduct their affairs effectively and regulate the actions of their members for the general public good. The question that readily comes to mind is the issue of development of local government in Nigeria up to date, which is critically examined below.
During the colonial masters, local government has been conceptualized in various forms such as divisional administration, field administration, local government (Olowu (1989), development administration and council manager system (Gboyega (1987). The indirect rule system of the 1900 and multi-fier 1905 were most dominant in Nigeria. The indirect rule system a field administration model was introduced in 1916 by a nation wide ordinance promulgated by the colonial government first in Northern provinces and later in the Western and Eastern provinces. A model known as native administration system comprises of four main independent bodies namely.
- The Resident who provided direction and control.
- Native Authority usually the traditional ruler.
- Native court (Gboyega 1987).
- The native Treasury.
The system was a child of necessity as the British has to adopt the system due to circumstances beyond their control; such circumstances are shortage of British manpower to service the vast area acquired by them, the problem of communication and desire to control local resistance to foreign rule. The system didn’t encourage popular participation; the emphasis was on colonial regulation of conquered people. The system had relative success in some part of Nigeria, like in the North, then partially in the West but in the East it was not successful.
After the Second World War, there was political development inside and outside Nigeria, which led to the abolition of indirect Rule system and it was replaced by the British with tier local government system, which there was full-grown system that will be efficient, participatory and relatively autonomous (Olowu 1989). The Eastern region brazed the trial in 1950 followed by Western in 1952, lastly by Northern in 1954 in the East they produce three tiers structure namely the country, the district and the local government council and its autonomous of on another. Further reformed was carried out in 1955, 1958 and 1960.
Membership of these councils were democratically elected although some traditional rulers were nominated as members of the council. An elected chairman presided over council meetings but on ceremonial occasions.
In 1966, when the military entered the political arena, many regions were completely abandoned that democratic experience and replaced them with management committees. The military regime in the regions dismissed these management committees and appointed sole administrators. In early 70s some state government – namely, East Central, Rivers, South East and Mid – West went further to abolish local governments and replaced them with field administration known as Divisional Administration while in the Western states the old council management system was still functioning as before. Later in 1976 the nationwide reform on one local government administration.
In this 1976 local government reform, it was the most radical and significant in many respects. It creates a single tier multi-purpose structure throughout the country. It also defined local government administration, the objections, functions, financial resources with uniform standard and procedures. These reforms were subsequently incorporated into the 1979 constitution of the Federal Republic of Nigeria and it democratized the system with three years life span.
Grassroots development of local government suffered some reverse during the second republic from 1979 – 1983. The civilian governors merely increased the number of local government area from 301 to about 800 (Gboyega 1987) and appointed committees as caretaker to administer the councils. Most of these local governments were denied of their legitimate fund by their state governments. These funds source from statutory allocation. Even the state internal revenue, which supposed to be shared to this local government are even denied of. These states even went as much as encroaching some revenues that are supposed to be generating by these local government.
However, during the time of Babangida administration (1985 – 93) some administrative actions were taken which gave local government administration some lease of life. Separation of power becomes fully operational in local government administration. During this Babangida administration, the chairman and supervisory councilors were made the executive arm while the elected councilors were made the legislative of local government administrations. The departments of the local government are:
- Personnel
- Finance and supplies
- Works, planning and statistics
There is internal audit department, which the Director General of Audit for local Government provides continuous audit for local government administration. The functions of local governments have seen enlarged and categorized into exclusive and concurrent list. The organization of local government administration is in the hands of the councilors; this model was in existence in the North since 1950s.
This study is going to evaluate the revenue generation and expenditure and as well will unveil those untapped revenue sources open to the local government.
- STATEMENT OF THE PROBLEMS
In developing country, some of the problems facing their local governments, as in Nigeria were how to improve the socio-economic statutes of its people to feel belonged which could help them to provide certain amenities to the citizen, like health centre, good roads, market recreational facilities and so on. These amenities if provided will help to improve the standard of living of the citizen.
On the other hand, if the local government could not provide these amenities it means that they are facing many problems, and some of these problems are:
- Lack of qualified personnel
- Lack of adequate financing
- Lack of meaningful planning
- Poor internal control and monitory system
- Inefficiency and misappropriation of funds.
These problems cause inefficiency and ineffective performance of the local government statutory duties to the citizen of the country.
- OBJECTIVES OF THE STUDY
This study is aimed at the following:
- The purpose of this study is to ascertain the different methods of collecting revenue and find ways of improving them.
- To appraise the control techniques already existing and find a way of instituting better ones.
- To discover unharnessed sources of revenue for local government.
- To find a better solution to the operational problem to Enugu South Local Government such as;
- That lack of funds hinders their effort at realizing its objectives.
- Again, that lack of skilled personnel affects the effectiveness and efficiency of the operations of the local government council.
- Finally to make some recommendations on the ways to make local government system efficient in its assigned roles based on the findings made from this study.
- SIGNIFICANCE OF THE STUDY
The significance of this study lies in the attempt to provide a blue print for checking cases of embezzlement and misappropriation of funds, which are posing serious problems to the progress and growth of our nation.
This research work will provide authentic information to the policy maker on the financial problems of the local government in Nigeria. Also it provides information to the local government on how to generate more funds internally.
Lastly, it will motivate the federal government on the need to increase the percentages allocation of the federation account to local governments.
- SCOPE AND LIMITATIONS OF THE STUDY
This research work will cover Enugu South Local Government Area, which is one of the local governments in Enugu State. This local government is chosen because it is one of the oldest local government in Enugu province, which is then called Uwani Local Government. It is used as my case study because it will help me to gather information about the performance of local government in terms of generation of revenue and expenditure.
The study will also be restricted to the financial resources available to the local government which depends on how the staff of the local government are willing to release all he necessary information to the researcher, like monthly income and expenditure profile for the relevant year.
- HYPOTHESIS TO GUIDE THE RESEARCH
(a) H1: The local government is able to generate enough revenue resources to meet its expenditure budget.
H0: The local government is unable to generate enough revenue resources to meet its expenditure budget.
(b) H1 The use of taskforce made up of staff for the revenue drive yield more revenue for the local government.
H0: The use of taskforce made up of staff for the revenue drive does not yield more revenue for the local government.
(c) H1:: There is adequate checks and balances system in financial control within the local government.
H1: There is no adequate checks and balances system in financial control within the local government.
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
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First Bank:
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Account Name: 3059320631
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
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