ABSTRACT
This project work seek to examine the problems and prospects
in financing Local Government in Delta State Local Government account, control
of expenditure and problems of revenue for local government. The study made use
of both primary and secondary data. The study revealed that local government is
a political subdivision of a nation (in a federal system) or state which is
constituted by law and has substantial control of local affairs including the
power to impose taxes or to exact labour for prescribed purposes. It was also
found out that every state of the conduct of business in the local government
council within its area of jurisdiction and such local government law should
make provision for keeping of local government account. The study revealed the
problem of local government revenue classified unto two major problems and
prospects namely internal and external revenue. The study recommended amongst
others that the provision of amentias in respect of tax payer go as to motivate
them to pay their tax as when due.
TABLE OF CONTENTS
Title i
Approval ii
Dedication iii
Acknowledgement iv
Abstract v
Table of contents vi
CHAPTER ONE – Introduction
1.1 Background of the study 1
1.2 Statement of problem 3
1.3 Objective of the study 4
1.4 Research Question 4
1.5 Significance of the study 4
1.6 Scope of the Study 5
1.7 Limitation of the Study 5
1.8 Definition of Technical Term s 5
Chapter Two – Literature review
2.1 Literature Review 8
2.2 Source of Funding Local Government 7
Chapter Three – Research methodology
3.1 Introduction 12
3.2 Research design 12
3.3 Population of the Study 12
3.4 Sample Techniques 13
3.5 Sample Size 13
3.6 Research Instrument 13
3.7 Validation of Instrument 13
3.8 Reliability of the Instrument 14
3.9 Method of Data Collection 14
3.10 Method of Data Analysis 15
Chapter Four – Data Analysis and Presentation
4.1 Data Analysis 16
CHAPTER FIVE – Summary Conclusion and Recommendation
5.1 Summary 31
5.2 Conclusion 31
5.3 Recommendation 32
References 34
Appendix 36
Questionnaire 37
CHAPTER ONE
INTRODUCTION
Background of the Study
Since 1979 Nigeria has been operating three level of
government as a federation.
During the era of the parliamentary system of government,
local government served as sub – division of the regional government. The 1979
constitution which ushered in a presidential system of government gain the
impression that just as there was separation of government into federation
state and local government. Therefore local government made up the state and
the sate making a nation which is constituted by law and has substantial
control of local affairs including the power to impose taxes for prescribed
purpose.
From the description above a number of important factors
could be seen very clearly that local government is a lower level of government
compared to that of a federal government and at is setup by law and has certain
responsibilities.
Whalen (1975) made additional contribution as to territory
as to territory population and legal identity when he said that each unit of
local government in any system is assumed to posse the following
characteristic, given territory and population and institution structure a
separated legal identities a range of power and function authorized by
delegation from the appropriate central or intermediation legislature and
lastly within the ambit of such delegation autonomy subject always to the test
of reasonableness.
The 1999 constitution of the federal republic of Nigeria
provided a federal system of government made up of federal government a sate
government and 774 uniform local government for Nigeria.
Section 7 (2) (3) state the duty of local government council
within the state. The fourth schedules of the constitution outline. The general
function of local government. Thereby, ensuring that they were no longer solely
of state affairs.
The 1999 constitution gave full impression that it had
elevated local government to an independent third level of government. The
constitution also provides that;
The national assembly shall make provision for statutory
allocation of public revenue to local government council in the federation and.
The house of assembly of a state shall make provision for
statutory allocation of public revenue to local government council within the
state.
In Delta State, there exist twenty file local government
among which is the Isoko North Local Government area and they are expected to
carryout function such as making of recommendation to a state commission on the
economic development of the areas, the collection rates of license, the
construction and maintenance of road, street park market, shop provision and
maintenance of primary education, the development of agriculture etc. as
stipulated in the constitution. However, Isoko North Local Government of Delta
State which is the area under review is not an exemption. The success or
failure of local government of carrying out the above function effectively to a
large extent depends on the internal revenue generated as well as the
management of local government resource particularly their human resource.
House of assembly legislate for local government in Delta
State by the provision of the constitution section on 7 (6) b. the house of
assembly of a state shall make provision for statutory allocation of public
revenue to local government council without the state including local
government under review Isoko North.
Statement of Problems
Local government financial ought to be treated with
paramount important finance is a major problem of local government
administration especially in Nigeria. There is hardly enough fund to take care
of all its activities while their areas of revenue base is always small.
Inadequacy of professional staff most of the local
government are not properly trained in management local government affairs,
fraud embezzlement and misappropriation of fund is a major problem in the
operation of local government.
The future prospect in financing local government are
provision of enough fund. Enough fund should be provided to the local
government this would help to tackle most of the responsibilities facing then,
for example in the provision of infrastructural facilities. Like roads, library
service electricity also in – service training.
Most of the worker should be given the opportunity to
further their training in local government administration auditing. Auditing
should be done regularly in order to enhance efficient and sound financial
management.
Objectives of the Study
The major objective of the study is to
Identify the general problems of local government financing
(Isoko North Local Government Council) and highlight some of the ways in which
the local government can boost their capacity to generate higher level of
internal revenue.
Identify and analyzed the source of Isoko North Local
Government revenue.
Identify some of the factor influencing effective avenue
collection.
Significance of the Study
The study is of paramount significance in that the study
will be of immense help and usefulness to the government individuals
partnership, corporate organization, student, teachers, scholars and other
researcher as it will provide useful information in effective policy formation
and implementation, addition knowledge on problems and prospects in financing
local government in Delta State.