Title Page i
Approval Page ii
Table of Content vii
of the Study 1
of the Problem 4
the Study 6
of the Study 7
of the study 8
of Terms 10
frame work 15
History of Uyo Local government 17
of Local Government Councils 22
Revenue to Local Governments In Nigeria 26
Uyo Local Government recurrent revenue and expenditure 29
problem of effective utilization of Revenue of Local Government 51
of the problems of effective utilization of revenue available to local
forward to the problems of effective revenue utilizations
Design and Methodology 64
of Study 67
of the Study 67
Sampling Techniques 69
the validity of the instruments 72
the reliability of the instruments 72
data analysis 73
presentation and analysis 75
Conclusion and Recommendations 84
1.1 BACK GROUND OF THE STUDY
Nigeria as a sovereign nation operates a federal
system of government i.e the federal government, state government and the local
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.
Uyo local government area was created out of Awgu
local government in October 1996 by the late head of state General Sani Abacha.
As one of the new local government councils, 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 – as sponsored by the federal military government. 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
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 Uyo local government area of Akwa ibom 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.
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
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.
One of the
fundamental problems in local government financial administration is the issue
of Effective Utilization of Revenue Available to the Local Government. Uyo
local government council may have tits unique problems that militate against
its financial administration.
problem of delay in payment of federal/state government grants to the local
problems of accountability in the local government council.
problem is that of ineffective financial control and management both internally
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.
OF THE STUDY
The central focus of the study is to critically
analyze the problems of effective utilization of revenue available to Uyo local
government area as a case study.
is meant to identity the major revenue sources available to local government .
ascertain the problems that confront the council’s administration in utilizing
revenue for their services.
out whether or not the revenue is adequate for the council’s expenditure.
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 Uyo 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 Uyo 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
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
(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 Uyo local government
as a case study to deal with this particular problems in other local government
The study is also centered on the sources of
revenue available to local government both the internal and external sources of
(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
Uyo Local Government, the case study of the research work.
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 Uyo 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
1.6 RESEARCH QUESTIONS
In the effort of carrying out this research, the
following questions were formulated:
aware of the constitutional provision of revenue sources to the tiers of
government in Nigeria?
means has Uyo Local government planned the expenditure of available revenue?
systems of financial control measures are used by council administrators?
utilization of the Revenue Available to Uyo Local Government produced positive
or negative effects?
1.7 DEFINITION OF TERMS
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.
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.
(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
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
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
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
Ugoo, E. A. (2007) Local Government
Administration in Nigeria. issues and practice. Akwa ibom: Fourth dimension
Ani, O. W. (2009) Local Government Finance.
Akwa ibom. Fourth dimension publishers
Okoli, E. (2005) Theory and Practice of local
Government. Akwa ibom: John Jacob’s classic publishers.
Owo, O. (1992) Local Government in Nigeria.
Akwa ibom: Fourth dimension publication.