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APPRAISING THE
FINANCIAL CONTROL APPROACHES IN NIGERIA LOCAL GOVERNMENT SYSTEM
ABSTRACT
In consonance with its transition of civil rule programme by
the federal government this year, a lot of changes are being carried ou tin the
local government.
First was the election of the local government chairman and
councilors on the 12th December 1987, followed by the appointment of sole
administrators and replaced by the caretaker committee in 1990. The current changes include the elected
councilors forming he legislature and the secretary appointed supervisory,
education etc. as is obtained in the sate government.
These spectacular actions of the federal government has given
credence to new directions in the operation of the local government system in
Nigeria (Nzelibe, 1990).
It is further to be noted that the federal government from
ten percent to twenty five percent, in addition to the ten percent state
generated revenue and the internal sources available to them.
With all these funds now available to them and the increase
in their responsibilities especially the funding of primary school education, it
becomes more important than before that the accounts of the local government
should be audited in order to ensure that the money is judiciously used and
channeled to the projects meant for them.
In this direction, this research work tries to find out the
problem associated with financial control in Enugu south local government so as
to proffer solution in order to make the local government more efficient and
capable of rendering the services for which it were established.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Nigeria local government system is as old as Nigeria
creation. Even before the arrival of he
British to Nigeria and introduction of modern system of local government, the
traditional system of local governance exists.
However, with the traditional system of governance, which was
administered by the local people, the issue of financial control more often
than not generates problems between the operators and the governed and atimes
between the operators themselves.
During the colonial rule the British divided Nigeria into
regions, districts and divisions. The
districts were then like what we call today local government areas. While the central government controls the
entire country, it gave the subordinate units some degree of independence in
the control of its affairs and provision of certain amenities in the local
areas.
Prior to the lunching of the 1976 local government reforms,
all the regional (states) governments without excerptors created, modified and
manipulated local government system and institutions as the considered
expenditure. The practice was not
suitable and this brought about for a uniform local government system. It is on this ground that a new local
government system popularly called “1976 local government reforms”
metamorphosed.
Ugwu, (1991:11) states that it is therefore the guest for
effectiveness, good functioning and liability of our local government system
that brought about this decentralization of the power of our federal government
– by creation of a new uniform local government system with the 1976 local
government reforms.
According to paragraph seven of the 1976 local government
reforms, the term tier is designed as a set of local government with their own
identity, powers and sources of revenue established under state legislation and
with functions for which they have been responsible to the state. The guide line equal articulated the
following objectives of the new local government reforms:
1. To
enable the people to respond to service and development activities in their
communities through their representative bodies.
2. To
mobilize human and material resources through the involvement and participation
of the people in the programme for the development of their communities.
3. To
create favourable condition for democratic development initiative and qualities
of among the people.
4. To
enhance the sense of belonging and security through the effective communication
between the local government communities and the three levels of government in
Nigeria.
5. To
provide a two way channel of communication between local communities and
government (both state and federal).
6. To
bring government nearer to the people and guarantee reasonably, adequate
functions, financed resources and staff for local government.
It is important to state that despite the various reforms
that were equally other structural led to the creation of local government in
Nigeria from 229 in 1977 to 301 in 1987.
In 1989 we had 589 and presently we have 774 local government areas in
Nigeria. Enugu south local government
areas which we used as a case study was created in 1991 by the General Ibrahim
Badamosi Babangida led administration.
It is therefore, necessary to state that despite all the
guidelines structural and managerial reforms, all the financial control
approaches in the local government system have not achieved maximum result and
it is in this basic that there is the need for the study.
1.2 STATEMENT OF
THE PROBLEM
According to Odenigwe (1977:19) local government is defined
as a system of local administration under which local communities and towns are
organized to maintain law and order, provide limited range of social services,
public amenities and encouragement co-operation and participation of the
inhabitants in joint and endavours towards the improvement of their condition
of living. Form the above definition
which is widely accepted, one would at a glance observe that the Nigeria local
government system are based with varieties of problem.
The provision of social services, public amenities could only
be achieved when there is availability of funds and good management of fund.
It is therefore, not of place to state that the problems of
financial control in the local government system in Nigeria is attributed to
poor planning, insufficient funding, structural design, mismanagement,
misappropriation of funds, corruption and lack of qualified personnel on the
local government operators.
The researcher therefore identified the expediently necessary
to appraise the financial control approaches in Nigeria local government system
with a case study of Enugu South Local Government area of Enugu State.
1.3 PURPOSE OF THE
STUDY
The purpose of this study is to highlight some of the
problems that inhibit the viability of local government financial control
approaches and to look for the solutions.
1.4 SCOPE OF THE
STUDY
The researchers work is to appraise the financial control
approaches in Nigeria local government system (a case study of Enugu South
Local Government Area).
This work investigates the control mechanism in the public
service with particular emphasis on Enugu south local government in
distribution of dividend of the government.
1.5 RESEARCH
QUESTIONS
To help in the analysis, the following research question were
put forward?
a. What
are the problems of financial control in Enugu south local government area?
b. What
is the impact of local government administration in economic development of
Enugu south local government area?
c.
Does the source of fund available to local government responsible for
poor financial control of local government finance?
d. What
are the causes of low performance of the local government?
e.
What are the areas of direction of economic development of Enugu south
local government?
1.6 RESEARCH
HYPOTHESIS
Ho: The financial
control approaches in Nigeria local government system does not contribute to a greater
revenue income.
Hi: The financial
control approaches in Nigeria local government system contributes to a greater
revenue income
Ho: Financial
control approaches in Nigeria local government system does not improve the
management of finance and as well does not maintain meaningful development.
Hi: Financial
control approaches in Nigeria local government system improve the management of
finance and as well maintain meaningful development.
1.7 SIGNIFICANT OF
THE STUDY
Finance is not a rite peculiar to the finance department, nor is financial
administration. Financial factors have
to be considered along with others not independently of them, the financial
work will be dispersed throughout the whole organisation, and neither the most
efficient finance department of which will avail unless those responsible for
directing the operations of the authority interest themselves in finance
control and management.
It is also important to note that unless problem associated
with financial control in the local government are identified, useful
suggestions cannot be made on how to improve the management of finances and as
well maintain meaningful development, such words as over-invoicing, inflation
of contracts, gifts, embezzlement have entered the vocabulary of governance.
According to Olewe B. N. (1996:337) the need for using a
centralized financial administration to strength rather than weaken the sense
of financial responsibility of the departments, the desirability of a proper
distinction between the “control” and service aspect of the work of the
accountant, financial officer and the need of inter departmental co-operation
will be created.
From the above analysis the researcher will attempt to
highlight the impact of financial control in local government administration.
1.8 LIMITATION OF
THE STUDY
There are a number of constraints that the researcher
encountered in carrying out this research work.
Some of these obstacles are highlighted below.
Owing to lack of forcible logistics to carryout compressive
study of the operations of the whole local government under study a number of
communities were selected.
Another important problem is the uncooperative attitude of
the local government official, others are the perennial attitude to work in the
public service. Sometimes when one
called to get vital information on facts, the key officers may not be met to
supply information needed.
Another important factor is the time constraint within which
to complete the project work and bureaucratic procedure in public services to
grant interview.
Also one of the constraint the researcher encountered is the
limited literature of this particular logic.
1.9 DEFINITION OF
THE TERMS
It is imperative at this juncture to defined some key words
that form the concept to enable the reader appreciate the meaning and usage.
1.
Local Government: According to Umebali, E. E. (2000:4) Quoting Odenigwe
define local government as the system of local administration under which local
communities and towns are organized to maintain law and order, provide limited
range of social services, public amenities and encourage cooperation and
participation of inhabitants in joint endeavours towards the improvement of
their condition of living.
2.
Appraise: According to the Standard Collins English Dictionary, appraise
means to evaluate or estimate value.
3. Finance: This simply means the money
available for the organisation to perform its function.
4.
Control: Collins English Dictionary defined control as giving of
command, dominate, regulate or direct.
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