ABSTRACT
The topic for this project is problem of revenue source in local
government administration, a case study of Aninri LGA of Enugu State. A
number of research questions were formulated and structured
questionnaire use for data collection from the staff of Aninir LGA. The
collected data were organized in frequency tables and percentages used
for analysis, the data revealed among other that the major revenue
source in Aninri LGA. Were the federal and state statutory allocations,
major problem of which was delay in remilling the allocations among
others? To forestall the problem, the researcher recommended among
others that allocations be remitted in time and intensive internal
revenue generation be enhanced.
CHAPTER ONE
1.1 BACK GROUND OF THE STUDY
It is generally believed that man is a political being. In his effort
to organize his society in ordering manner man evolved system or
government. The problem o a workable system of government is the pivot
of human political activities.
Nigeria as a sovereign nation operates a federal system of
government. In its federal character Nigeria is divided into three
levels of government viz: - the federal government, state government and
the local government councils.
These three levels of government are involved in a co-operative venture geared towards improving the life style of the citizens.
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.
Local government councils are generally perceived as the grassroots
government. This in effect shows that the government closest to the
masses.
Olawale (1980) was emphatic on this when he said that local
government councils can be referred to as government at local level and
this enable local people to govern themselves in certain specific areas.
This arrangement is essential the central government connect possible
attend to every detail of local administration; hence it delegates local
functions to local government. The local government reforms introduced
by the federal military government in August, 1976 were meant to bring
governmental services at the doorsteps to rural dwellers. In deed, the
creation of local government councils depicts the pragmatic efforts by
different regimes to reach the people at the lowest ladder of the
society.
Aninri 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 problem ms facing the councils
are insufficient office accommodation, staff quarter and office
infrastructures. These problems seem to be insurmountable.
Indigenes of the local government are desirous of enjoying modern
facilitating, improved means of transportation, such as good road net
work and mass transit transport services. These desire are in line with
stated objectives of the local government reforms as sponsored by the
federal military government in 1976. The Nigeria year book, of 1983,
outlined the aims of the local government system in the country.
According to that document, one o 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 want the influence of the communities in the local government area
via the provision of functional feeder roads and public utilities.
The council administration in the other hand complain of inadequate
finances to meet up with the numerous responsibilities yearning for
attention. They always complain that staff salaries alone drain a high
percentage of the monthly allocations financial experts postulate that
money is at the centre of developmental projects. Acquisition and proper
accountability of funds are the pivot upon which a successful local
government system revolves.
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 vital but imperative.
It is therefore against this background that this project work is
being undertaking with a view to discovering the problem of revenue
sources in local particular reference to Aninri local government area of
Enugu state.
1 .2 STATEMENT OF THE PROBLEM
The relevance of the local government councils as the government at
the grossroot is measured by the quality of services rendered to the
rural dwellers.
For the council to render meaningful services, in form of
provision of basic amenities, construction and repair of roads and
bridges create employment opportunities for the citizens and pay staff
salaries as and when due, money is undoubtedly required.
In fact, money is generally recorded as the hallmark of any visible
developmental project. Without the availability of revenue, the council
will not only be incapable of serving the people but will undoubtedly
crumble;
- One of the fundamental problems in local government financial
administration is the issue of revenue generation. Aninri local
government council may have its unique problems that militate against
its financial administration.
- Another outstanding problem is that of inadequate federal allocation as a source of revenue.
- Furthermore, the problem of financial administration in form of
improper utilization of the revenue, either internally generally or
allocation from the federation account.
- Another problem is that of generation revenue internally by the staff of Aninri local government area.
- the problem of security loans from banks as a source of revenue to the council
- Again, the problem of improper and inadequate machinery for financial accountability.
1.3 PURPOSE OF THE STUDY
The central focus of the study is to critically analyze and appraise
the problem of revenue source in local government area as a case study.
- The study therefore is meant to identity major revenue source in Aninri local government.
- To find out the subsidiary revenue sources open to the local government.
- To find out how the revenue meet with the councils expenditure
- To find out possible avenues for generating funds internally.
- To ascertain the problems that confronts the council administrators generating revenue for their services.
- To investigate the system of financial control in the local government council.
- To identify the prospects of the revenue sources to Aninri local government council.
1.4 SIGNIFICANCE OF THE STUDY
The significance of any human endeavour is measured by its relevance to solving human problems.
The project will be of benefit, first and foremost to the Aninri
Local Government administrators as it will expose to them potential
sources of generating of revenue internally. Secondarily, it will help
the council to strengthen it financial base as this study would
highlight some identified problem hampering the generation of revenue in
the council.
It is useful to the general public especially the indigenes of Aninri
local government to co-operate with local council administrators to
enable the build a viable local government by paying their taxes and
rates promptly.
1.5 SCOPE OF THE STUDY/DELIMITATION
The study will concentrate on the finance department of Aninri local
government whose duty, it is to administer its finances. In doing so
efforts is being geared towards identifying the problem associated with
revenue encountered by revenue enforcement officers and the prospects of
the revenue potentials of Aninir Local Government Area.
It does not concern itself with the general administrative set up
like day to day personal administration, health management and works
department of the local government.
1.6 RESEARCH QUESTIONS
The following questions were postulated:-
- What are the major sources of revenue of Aninri local government?
- what are the subsidiary revenue sources of Aninri L.G.A?
- What systems of financial control measures are used by council administratiors?
- What are the problems associated with the revenue sources of Aninri L.G.A?
- Does the stated joint allocation committee of local government revenue hamper the revenue sources of the council?
- What are the prospects of the sources of revenue to Aninri L.G.A?
1.7 DEFINITION OF TERMS
Some concepts and terms requires proper explanation or
definition to enhance our understanding of the theme where necessary
opinions of scholars will be cited to illustrate the terms.
Democracy
The 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.
Dare (1981) postulates 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 democratic government.
Pragmatism
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
masses.
Rural Development
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 lot of the rural population.
Accountability
Accountability as a concept connotes different professionals.
Accountability when used by financial experts like accountant and
Auditors, simply means the use of a specified sum of money in accordance
with laid down rules and regulations it could mean judicious spending
of financial resources for the items they are meant for. It is the
opposite of recklessness in financial management. In this wise, prudence
is the watch word.
This is the process of examining financial records of income and
expenditure in an organization, to ascertain the according or entries
made there in. it is used here to refer to devices by which local
government resources are being controlled. An individual who specializes
in auditing is referred to as auditor.