FINANCIAL MANAGEMENT AND ACCOUNTABILITY IN LOCAL GOVERNMENT A CASE STUDY OF IHETE UBOMA LOCAL GOVERNMENT AREA, IMO STATE

CHAPTER ONE

INTRODUCTION       

1.1  BACKGROUND OF THE STUDY

Right from time immoral man was faced with the problem of managing himself and the environment surrounding him. He was faced with problems like providing security for himself and how acquired resources that were not within his reach to improve his standard of living. The c0-existence of men on earth necessitate the combination of scale resources, which were used t o achieve better development process.

These benefit of amalgamated resources and idea must reach to the nook and cronies of a defined area of jurisdiction, managed by credible hands must be accountable to the people that sent them to local government administration. These is a third tier of government that was charge by  law or constitution to administer the function of government and see the welfare and interest of the local dwellers under the local government system.

During the colonial era, local administration was rested on officers appointed by the colonial masters. The appointees had executive, legislature and sometime judicial functions. Characterizing Nigeria local government system during and after colonial period  till 1976 was non-uniformity of the system, each state operated its own local government unique to it while propelled the federal military government to reform local government administration in 1976, during Mohamade Obasanjo  regime. This 1976 local government reform marked the inception of the modern local government administration in Nigeria.

This reform was timely because Nigerians needed a local government system that will serve as machinery forever and accelerated development. We need a local government administration that will serve as a vehicle for increased democratic processes at the grass-root and provide the foundation for stability of the national political system. The local government has the financial powers to initiated and direct the provision of services stated, briefly local government perform proprietary developmental and other functions that may be assigned to them from time to time by the authority that established them.

It is to this effect that the local government are usually empowered to sources for revenue independently in addition to the periodic statement allocation from other superior bodies like the federation specific function aid responsible were assigned to them will powers to raise revenue through taxation and other sources such as property rates, fines, fees on license etc. with the guideline prescribed by legislation.

To guarantee the effectiveness and efficiency of local governments, the 1979 constitution granted the local government the status of a third tier system of government to make them function effectively and efficiently as agents of local democracy aid local development. It also granted them power to strengthen their revenue base through independent taxation. Again, the revenue allocation act of 1981 provided for the federal and state government to contribute ten percent (10%) of their actual revenue to the local government.

According to Okoli M.U (2005) the Dasuki committee on local government reforms, the statuary allocation of local government was increased to 15% on addition to contribute 5% of their total revenue. Besides, the 1979 constitution also provided for a joint account with local government which the federal and state government paid their shares of hares of statutory allocation of local government from where finds are supposed to be disbursed to local government by the national assembly.

Ogonna, A. (1996:117) postulated that Babangida’s administration also led to the allocation of 20% of the federal account to local government in addition to granting them more powers to source revenue through taxation and grants as aid from the federal and state government. Despite all these, there has been appreciable improved in the fiancé of local government especially in the urban area where the availability of most local government are rejoicing because of quick revenue bases.

2.2  STATEMENT OF THE PROBLEM

Over the years, there have been a lot of controversies as regarding to the poor performance of the local government in the country. As some people view the dismal performance of the local authorities as being the direct out come of lack of finance and low revenue capacity, others has also agreed that the problem of the local government is not fiancé but lack of the right person who posses the necessary power for effective and efficient management of resources. It has also been argued that most local councils especially in the rural areas rely on the statutory allocation as their major source of revenue,. They are received as not being productive in the source that they project and policies. The revenue yielding machinery and the system of revenue collection have been flawed on the grounds of non-availability of qualified manpower, lack of public enlightenments over ambitions and corrupt revenue officers addition to other factors. In some cases, there has been lack of proper planning and budgeting which would have helped local councils to operate health financial system.

DOWNLOAD COMPLETE PROJECT