MANAGING LOCAL GOVERNMENT REVENUE IN NIGERIA: A CASE STUDY OF ENUGU SOUTH AND OJI RIVER LOCAL GOVERNMENT AREAS

MANAGING LOCAL GOVERNMENT REVENUE IN NIGERIA: A CASE STUDY OF ENUGU SOUTH AND OJI RIVER LOCAL GOVERNMENT AREAS

ABSTRACT

The management of revenue accruable in Nigeria local government has been a thing of concern to well meaning members of eh society. This is associated with the internal revenue source available to the local government, its generation method, mode of expenditure by council chairman, lack of proper auditing and accountability is achieved / seen to be the main problem of persistent poor management of these funds.

The study carried out was used to appraise the existing managerial methods of local government funds meant for providing infrastructure etc. rural areas as a third tier government.

The significance of the study is that; it x-rayed / reviewed the critical issues in managing local government councils in Nigeria. This also helped in providing information on the source and availability of funds to local government councils in Nigeria.

The study covers Enugu South and Oji-river Local Government Area of Enugu State. Critical issues looked into in managing local government council in Nigeria are; sources and availability of funds, regular and prompt payment of staff salaries, pressure groups, community development, accountability probity etc.

The study is expected to benefit the government, leaders at grass root and well meaning members of the society.

CHAPTER ONE

• INTRODUCTION -        -        -        -        -        -        -        1
  
  
  
  • BACKGROUND OF THE STUDY - -        -        -        1
  
  
  • STATEMENT OF THE PROBLEM -        -        -        -        1
  
  
  • OBJECTIVE OF THE STUDY -        -        -        -        1
  
  
  • RESEARCH QUESTIONS -        -        -        -        -        1
  
  
  • SCOPE OF THE STUDY -        -        -        -        -        1
  
  
  • SIGNIFICANCE OF THE STUDY - -        -        -        1
  
  
  • LIMITATION OF THE STUDY -        -        -        -        1
  
  
  • DEFINITION OF TERMS -        -        -        -        -        1
  
  
  
  

CHAPTER TWO

• INTRODUCTION -        -        -        -        -        -        -        2
  
  
  
  • REVIEW OF RELATED LITERATURE - -        -        2
  
  
  
  

 

CHAPTER THREE

• RESEARCH DESIGN AND METHODOLOGY -        -        3
  
  
  
  • RESEARCH DESIGN - -        -        -        -        -        3
  
  
  • AREA OF STUDY -        -        -        -        -        -        3
  
  
  • POPULATION OF STUDY -        -        -        -        -        3
  
  
  • SOURCE OF DATA -        -        -        -        -        -        3
  
  
  • SAMPLING METHOD - -        -        -        -        -        3
  
  
  • RESEARCH INSTRUMENTATION -        -        -        3
  
  
  • VALIDITY AND RELIABILITY OF RESEARCH
  
  
  
  

INSTRUMENT   -        -        -        -        -        -        -        3

• METHOD OF INVESTIGATION -        -        -        -        3

 

CHAPTER FOUR

• DATA PRESENTATION AND ANALYSIS -        -        4
  
  
  
  • PRESENTATION AND ANALYSIS OF DATA -        -        4
  
  
  • PRESENTATION AND ANALYSIS OF RESULT -        4
  
  
  
  

CHAPTER FIVE

• SUMMARY OF FINDINGS/ CONCLUSION AND

RECOMMENDATIONS        -        -        -        -        -        5

• SUMMARY OF FINDINGS -        -        -        -        -        5


• CONCLUSION -        -        -        -        -        -        -        5


• RECOMMENDATION - -        -        -        -        -        5


• BIBLIOGRAPHY -        -        -        -        -        -        -        5


• APPENDIX -        -        -        -        -        -        -        -        5

CHAPTER ONE

 

• INTRODUCTION
  
  
  
  • BACKGROUND OF THE STUDY
  
  
  
  

The 1996 local government reform defined local government as:

Government at local level examined through representative council established by law to exercise specific powers within defined areas. These power conferred on them shall give the council substantial powers and control over local affairs as well as staff, institutional and financial powers to initiate and direct the provision of services to determine and implement projects so as to complement the activities of the state, and the federal government in their areas, and to ensure through development of functions to these councils and through participation of the people and their traditional institutions that local initiative and response to local needs and conditions are maximized. Anambra State Government (1976: 108).

On 1^st September 1976, the federal government create local government on the following basis;

1. In an area having a population of not less than 150,00 persons.


2. In an area containing a population not more than 800,000 persons.


3. Not withstanding the provisions of paragraph (1) and (2) above, were exceptional geographical, cultural and historical factors or any other special circumstances exist in any particular case, a local government area may be established not with standing the member of inhabitant of the area.

This, by the local government reforms of 1976 and its subsequent reflection in the 1976 constitution, the government now becomes of third tier government in Nigeria. The local government reforms sought to bring government to the door steps of the people. In furtherance of the above objective, local government in the country were made autonomous.

Thus, by this act, the local government in the country now have distinctive, exclusive and concurrent list of functions. Mandatory functions which zonal councils must perform as the exclusive powers of local government are making by laws for or all the following, market, moor parks, swage, slaughter houses, etc, while he permissive functions which the local government may perform as concurrent powers of both the local state government are as follows, health centres, primary and adult education, rural and semi-urban water supply.

 

• STATEMENT OF THE PROBLEM

One of the main objectives of the local governments creations in Nigeria is to promote rapid economic development at the grass roots. Consequently, local government authorities in Nigeria have direct responsibility of meeting social and economic development needs of the people communities within its domain.

However, available evidence show that local government councils throughout the nocks and crannies of the federation are lacking disastrously in their duties and responsibilities. A cursory look at these council areas will reveal the following;

1. Acute shortage of recreational facilities, schools and building, equipments, qualitative modern markets, functional hospital and maternities.


2. The few available infrastructure are left to root away, due to other neglect and sanctimonious aloofness of council authorities.


3. Irregular payment of salary / wages and other benefits that occur to workers in spite of the patience receivable and stipends.


4. Monumental credits and owed to sundry contractors for shoddily performed jobs.


5. Non-maintenance of roods and other infrastructure.


6. Lack of portable water supply and distribution


7. Intolerable level of corruption and fraud in executing projects.


8. Poor executed any inflated capital project


9. Frustration in the local government services due to lack of promotions and incentives.


10. Misappropriation and misappropriation of funds


11. Lack of acceptable level of accountability, probity and integrity.


12. Wrong caliber of people being at the helms of affairs in most of these council.

The enumerated problems above contributed in no small measure in the under development of our local government are. Attempts at finding solutions to these multiplex problems mutilating against effective and efficient management of local council will no doubt yield a huge positive dividend especially no that is on the threshold of the 4^th republic.

The researcher is of the opinion that a hard look at these critical issues will definitely lead to finding ways and means of ameliorating the situation in order to stimulate economic and social life of these areas. It will elite application of proper managerial tools, right attitudinal approach, sound professional knowledge and ethnics, accountability and probity, administering local government council in Nigeria.

The research is therefore constrained to ask the following research questions with a view to finding solutions to problem facing local government council in Nigeria;

1. What are the sources of local government revenue?


2. Are these resources exhausted and adequate?

• Are this revenue derived for these resources adequate to stimulate economic parameter available in these local government councils?

1. What are the measure entrenched by the state and federal government to ensure accountability, probity and integrity?


2. Are there measure (if any) effective?


3. What are the additional measure needed to ensure their effectiveness (if necessary)?

• If these measure are adequate, what other factors could have caused these economics and social malaise.


• How can these critical issues be addressed in order to get an optimal result?

1. What are the consequences of not addressing these critical issues adequately?

The researcher believes that finding answers to the above problem will help in no small measures in addressing critical issues in managing our local government councils.

 

• OBJECTIVE OF THE STUDY

The objective of this research are;

1. Critical appraisal of issues involved in managing local government council resources in Nigeria with particular reference to Enugu-South and Oji-River Local Government Area of Enugu State.


2. Appraisal of sourcing and utilization of funds and other economic resources available in these council areas.


3. Appraisal of adequacy and efficiency of the existing machineries for collecting and controlling revenues and expenditure in these local government council.


4. Appraisal of the regularity ad promptness of payment of staff salaries and other emoluments.


5. Evaluation of how good and productive governance of those councils have been.


6. To examine whether there is acceptable level of accountability, probity and integrity on the part of council workers.


7. Evaluation of how pressure groups are handled, and productive governance of law and order maintained and level of community development by these councils.


8. To critically examine the environment policies and other socio-political factors involve in efficient management of these local councils.

The researcher is optimistic that at the end of the study the reasons for the poor performance of local government council in Nigeria will e understood, and how to improve on the poor performance through the instrumentality of quality recommendations at the end of this study.

• RESEARCH QUESTIONS

This research work is anchored on the following research questions.

1. What are the sources of revenue generation in these local governments?


2. Do revenue collectors in these local government give correct account of their collections?


3. Does local government give enough basic training and retraining in the revenue staffs?


4. How do we improve revenue generation in these local government areas?


5. Are there more sources of revenue that can be explored by this local government?

 

• SCOPE OF THE STUDY

This study covers Enugu South and Oji-River Local Government Area of Enugu State.

Critical issues involved in managing local government council in Nigeria are numerous but only the one enumerated earlier on the course of this work such as: sources and availability of funds, regular and prompt law, payment of staff salaries, pressure groups maintenance of law were dealt with in this study order, community development, accountability, probity etc; were dealt with I this study.

The researcher cannot possibly interview all residents of Enugu South and Oji-River Local Government Council workers hence a sample instead of population was used in arriving at conclusions and recommendations. In other words, no reference was made about the population based on the sample studied.

 

1.6    SIGNIFICANCE OF THE STUDY

Since the creation of local government in 1976 till date, they suffered disastrously under bad governance. They have been unable to fulfill the ideals for which they were created instead they have done much to assault eh psyche of the people vis-à-vis misrule, embezzlement and flagrant misappropriation of resources, stultification of the growth of development rate of most these council areas. It becomes easy to appreciate the significance of such study as this, which aims at x-raying critical issues in managing local government councils, in Nigeria.

Succinctly, the study is significant for the following reasons;

1. It improves information on the sources of availability of funds to local government council in Nigeria.


2. It identifies critical issue in managing local government councils in Nigeria.


3. It is a potent relevant research material for those who may be interested I this sphere of study in the future since it adds to the existing literature in this area.


4. It highlighted factors militating against the realization of the lofty ideas of bringing development to the grass root.

 

1.7    LIMITATION OF THE STUDY

The enormous mass of data, resources and time required to carryout a comprehensive research involving and the 774 local government councils in Nigeria is clearly beyond the capability of this researcher, consequently, this research is limited to Enugu South and Oji-river Local Government Council.

The availability of current and up to date data is not easy even those who are negatively inclined to give out such information, of course this accessibility to data constitute a serous impediment to this research, but not so serious as to render the research invalid.

 

1.8    DEFINITION OF TERMS

Government Revenue:       This is defined as all money received other than from issue of debt liquidation of investments, agency and private trust transactions.

Vat:  Vat is a tax on spending borne by the final consumer of goods and services that are “vatable”.

Grants:      These are grants in aids received from other source for example from state government, federal government or from individuals.

Recurrent Expenditure:     This expenditure is related to proposals for disbursement of funds for services and programmes which re-occur from year to year.

Audit:        An audit is an investigation into the books of accounts and documents and voucher form which the books have been written up with the objective enabling the auditor to make a report to the balance or the asset and liabilities statement.

Capital Expenditure Estimates: No local government can retain the confidence of her citizens unless she can gradually improve the standard of her services and establish new economic and social project and programmes to enhance the living standard of its people.

REFERENCES

 

Adedeji, Adebayo and Rowland, L 2 (ed) (1993); Local Government Problems and Prospects: Ile Ife, Finance in Nigeria, University of Life.

Anyafo, A.M.O., (1994); Government and Public Sector Accounting: Volume 1 legal and Institutional Frame Work, Enugu, GOPW Foundation.

Ikejiani Clark M. and Okoli F.C (ed) (1975); Local Government in Nigeria Current Problems Future Challenges: Lagos Mangrove.

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