FINANCIAL MANAGEMENT AND ACCOUNTABILITY IN NIGERIA LOCAL GOVERNMENT SYSTEM
A CASE STUDY OF AYAMELUM LOCAL GOVERNMENT AREA ANAMBRA STATE
ABSTRACT
“The unfortunates general feelings among Nigerians is that, it is no crime to misappropriate to personal use, government resources or funds with careless abandon”.
Against the backdrop thee is problem of financial management and accountability in Ayamelum local government council because of the tagged stereotype that what belongs to nobly. This is why the Ayamelum local government operator only seek to satisfy personal conscience to the detriment of the public.
Despite all the provisions in financial memorandum and checks and balance system, there, the continuous cases of corruption and embezzlement which undermines the objectives of the local government being achieved. This phenomena has been exacerbated in recent times by massive poverty, deprivation and generally aver low standard of living in the general Nigerian society which has not been help by long years if military misrule and massive corruption in the highest lungs of government.
The objective of this research work is it examines the various provision made in local government reform guideline of 2976, 1988 other recent form. The provision of the financial
Memorandum and instruction and relevant documents for effective financial management and accountability in local government system.
The policy makers and future researcher will find it useful. In view of these stated objectives this research work is intended to critically study the problem associated with financial management and accountability in Nigeria local government system.
And the services which the local government is suppose to render were studied hoping that findings and recommendation proffered by the researcher will automatically particular and the society at large.
CHAPTER ONE
- INTRODUCTION 1
1.1 BACKGROUND TO THE STUDY 1
- STATEMENT OF THE PROBLEM 4
- OBJECTIVE OF THE STUDY 6
- SIGNIFICANCE OF THE STUDY 8
- THE SCOPE AND LIMITATION OF
THE STUDY 9
CHAPTER TWO
RESEARCH PROCEDURE 11
- LITERATURE REVIEW 11
2.1 CONCEPT OF LOCAL GOVERNMENT 14
- DEFINITION OF FINANCE 15
- DEFINITION OF MANAGEMENT 16
- DEFINITION OF FINANCIAL MANAGEMENT 17
- BRIEF HISTORICAL –
DEVELOPMENT OF ACCOUNTING 18
- DEFINITION OF ACCOUNTING 19
2.6.1 ROLES OF ACCOUNTING OF THE SOCIETY 23
- ROLES OF ACCOUNTANT IN THE SOCIETY 25
- ACCOUNTING ASSUMPTION AND –
PRINCIPLES 26
- IMPORTANCE OF ACCOUNTING
INFORMATION 30
- PRINCIPLES OF ACCOUNTING 31
- USERS OF ACCOUNTING INFORMATION 33
- QUALITIES OF ACCOUNTING
INFORMATION 36
- ACCOUNTING SYSTEM 41
- DEFINITION OF ACCOUNTABILITY 45
- GENERAL OF FUNDS OR REVENUE IN LOCAL
GOVERNMENT FUNCTION OF FINANCE 51
- FUNCTIONS OF FINANCE 53
- SERVICE RENDERED BY LOCAL
GOVERNMENT 56
- FORMULATION OF HYPOTHESIS 56
CHAPTER THREE
- RESEARCH DESIGN AND METHODOLOGY 59
3.1 INTRODUCTION 59
- RESEARCH DESIGN 60
- INSTRUMENT FOR DATA COLLECTION 61
- DETERMINATION OF SAMPLE SIZE 62
- METHOD OF SAMPLING USED IN
SELECTION 63
- METHOD OF STATISTICAL ANALYSIS 63
CHAPTER FOUR
- DATA PRESENTATION AND ANALYSIS 64
4.1 INTRODUCTION 64
- PRESENTATION AND ANALYSIS OF DATA 64
- TEST OF HYPOTHESIS 79
- HYPOTHESIS I 79
- HYPOTHESIS II 82
- HYPOTHESIS III 83
- HYPOTHESIS IV 85
CHAPTER FIVE
- FINDINGS, SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 INTRODUCTION 88
- FINDINGS 89
- IMPLICATION OF RESULTS AND FINDINGS 92
- SUMMARY 96
- CONCLUSION 98
- RECOMMENDATION 99
BIBLIOGRAPHY 104
QUESTIONNAIRE 109
CHAPTER ONE
- BACKGROUND TO THE STUDY
Before Nigeria became colonized, local government was carried out by traditional institutions more importantly, the Emirs, Obas, Chiefs, Age grade and village council were the ones directing affairs of the Nigerian traditional political system in various ways especially in revenue generation and utilization. Even the era of colonial rule, the British colonial officers ruled either through the instrumentalities of the traditional authorities where they existed or when it is not existing they created one where this is system of government known as indirect rule. But this time, it was modified in the proclamations of the British government revenue proclamation ordinances which gave the councils great power to levy taxes on property income at a special and or that rates, a s well as power to hire and fire staff below four hundred pound starling per annum. The traditional riles collects these tax for the local government reform of 1979 amplified by the 1979 constitution of the federal republic f Nigeria make provision for local government in each state of federation. This in effect brought about a three tier system of government federal, state and local government. Each of this is a government with a detained function in its area of jurisdiction since them the local government has became an essential instrument for rendering certain basic services which demand intimate knowledge of the need, conditions and peculiarities of the area concerned. Egbulem (1985 :7 ) observe that;
“The local government have been providing services which are essentially complimentary to those of the state and federal government so as to meet the common aspiration of the people.”
It means that local government complement and extends the national government. It brings national government closer to people and make its impact felt in all the nooks and crannies if the society. Okoli (1998:6) succinctly put it that;
“local government is, then the practical realization of the ideology of the national government. Whatever objectives the national government want to achieve are carried out the local level through the agency of the local government.
Dasaki panel on local government
Administration made it explicitly that;
“local government is expected to become more meaningful in facilitating social and economic development at the grass roots level central to the achieve meat of these objective is the financial viability of this tier if government”.
Therefore, there quality of development in rural areas within a local government will be dependent a local extent of revenue or financial available, its management and accountability by the local government and its staffs.
1.2 STATEMENTS OF PROBLEM
In embarking on 1976 local government reforms, the federal military government was essentially motivated by the necessity to stability and rationalize government at the grass root. To large a mirage between the people and government institutions at their most basic levels. To ensure that every stratum of Nigeria society benefits from continued prosperity of the country through the availability of social amenities. Indeed necessities such as electricity, water supply, improved transportation network, health facilities and so on.
To achieve these lofty ideals there is need for prudent and frugal management of local government limited resources by local government managers and practitioners. Almost all the former elected local government and sole administrators and councilors left legacies of hopes betrayed and promises compromised for their different local government areas.
The 1984 general buhari regimes miscellaneous sum recovery tribunal which probe into the activities if appointed chairman, councilors and other functionaries of local government council directed payment into government coffees sums of money ass surcharge or refunded to local government, some functionaries were dismissed or prematurely retired from service, or were forced to resign. This action taken had to do with public accountability.
For about three decades after the inauguration of local government reforms, local government still suffer from the continuous whittling down adequate fund to undertake capital development project. Staffing g arrangement ensure virile local government system is inadequate.
The problem can be summed up as follows:-
- the inability to proceed with essential capital development project because of limited revenue resource and accessibility to loan funds.
- Ineffective financial control and management both internal and external.
An attempt will be made to investigate the causes of these problems, examine the system of management and accountability with a view to making suggestion and recommendations for the improvement of local government financial management in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The objective of the study are to examine the various provision made in local government reforms, local government edict of 1996 of Anambra State, financial regulations, memoranda and instruction, the federal.
Republic of Nigeria constitution of 1979 and subsequent amendments of 1989 and other relevant documents for effective management and accountability in local government system with a view determining compliance by local government functionaries and practitioner.
In addition, the study intends to investigate the various resources available to the local government and to explore “ways of effective generation and improvement of revenue collection channel, both internal and external, in order to made funds available to finance capital development project with a view of creating wealth and
” better life” for our rural dwellers and appraise facilities available to ensure that local government spends funds so derived in a proper manner, for the purpose which the funds are meant for and in accordance with government riles and regulations.
It is therefore, the aim of this study to make some incursion into the operation procedure of local government with emphasis on finance and to ascertain the a\extent to which management and accountability could greatly bring about the transformation of rural and marginal communities as message the1976 guideline for local reforms and suggest ways and means for improvement.
- SIGNIFICANCE OF THE STUDY
The significance of the study is to stress the need for adequate financial management and accountability of Nigeria local government especially to the case study Ayamelum local government for improved performance and maximum efficiency. Thereby making local government projects.
Researchers, local government administrators staffs, politicians and those who may want to know what the local government is doing relation to its financial obligations and management of various available resources. The power of local government over its revenue and revenue sources and way of extracting them will finds the study useful.
1.5 THE SCOPE AND LIMITATIONS OF THE STUDY
The scope of the study lies in the case study Ayamelum local government area and limited to financial management and accountability in Ayamelum local government of Anambra state.
Ayamelum local government is also a clan make – up of eight communities, omasi, Omor, Umumbo, Ifite – Ogwari, Umueje, igbakwu, Umuerum and Anaku, the headquarter.
It is bounded in the North and East by Uzo – Uwani local government Area of Enugu State. In south by Awka North local government in the west. It has about 150,000 population covering area of about 3000,000 km.
The new local government which was created from Oyi local government in 1996 have witnessed most of the crisis associated with management and accountability during the short of its existence,. It is a typical specimen of rural local government in the country, devoid of almost all the basic necessity of better life”,
There is no single accessible road in the local government area and has not benefited from rural electrification except few communities. Lack of pipe borne water and inadequate health facilities and poor internal revenue base are evident by nearly absence of market, motor part and industries.
There absence of government activities in the local government area in terms of necessities of life made social life uncomfortable.
The neglect suffered by this area from eh former and present political administrative arrangement had generated apathy on the part of the people and had resulted in complete divorce between the people and government. Excusive politicking and made even modest progress impossible in
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