FINANCIAL MISMANAGEMENT THE ROOT CAUSE OF BACKWARDNESS IN LOCAL GOVERNMENT COUNCILS IN NIGERIA. (A CASE STUDY OF EZEAGU LOCAL GOVERNMENT COUNCIL)

CHAPTER ONE

Introduction                                                                                                1

• Background of the study                                                           1
• Statement of problem 6
• Purpose of study 7
• Scope of study 8
• Research questions 8
• Statement of null hypothesis 9
• Significance of the study 9
• Definition of terms 11

CHAPTER TWO

Review of literature                                                                           12

• Sources of revenue for Ezeagu local government

Council                                                                                    12

• Realities about mis-management of finance and

material in Ezeagu local government council                                    15

• Consequences of the acts of mismanagement of

finance by the council                                                              18

• Summary of related literature reviewed 22

CHAPTER THREE

Research methodology                                                                      23

• Research design 23
• Area of study 23
• Population of the study 24
• Sample and sampling procedure 24
• Instrument for data collection 25
• Validation of the instrument 25
• Reliability of the instrument 26
• Method of data collection 26
• Method of data analysis 27

CHAPTER FOUR

• Data presentation/analysis 28
• Summary of the results 39

CHAPTER FIVE

Discussions of Result                                                                        41

• Discussion of result 41
• Implication of the research findings 44
• Recommendations 46
• Suggestions for further research 47
• Limitation to the study 47

References                                                                               49

Appendix A                                                                                      50

Appendix B                                                                                      53

 

 

 

 

ABSTRACT

Ezeagu Local Government Council being one of the oldest local government councils in the state is up till now having more than half of the communities in it poorly developed.

To that effect, there has been a lot of allegations against several regimes in the council of not using the resources of the council appropriately. The pupils of that area are not very happy about the situation of the communities.

This study, in effect has strived to x-ray the truthfulness of the allegation of mismanagement of the available resources. It also has tried to level the reasons why those acts exist there.

In order to achieve success in the study, books and journals were reviewed, questionnaires were administered to a total of three hundred people from the entire 24 communities in the local government area as well as the staff of the local government council.

The data collected were analysed using the chi-square (X²) method of data analysis through the results notable facts were revealed including even other concepts for further research work.

CHAPTER ONE

 

INTRODUCTION

• BACKGROUND OF THE STUDY

Nigeria came into being as a country in 1914 when the then government general Lord Sir Fredrick Lugard, amalgamated the Northern and Southern protectorates of Nigeria. After the amalgamation, the then administration decided to divide Nigeria  into regions for ease of administration. There came up the North-Eastern Region, the North-Western Region, the North Central Region, the Eastern Region and the Western Region.

Each of these regions mentioned above was manned by an officer known as the district commissioner.

The quest for leadership hence started to influence the minds of Nigerians. As years passed, many regions, sections and individuals claimed to be neglected or oppressed by others in power-the British colonial masters.

Prior to the era of amalgamation f the various provinces of Nigeria, was the exploration of coal mine at the Northern side of the popular Udi hills.

On  the first day of October,1960 the British colonial masters granted Nigeria her political independence, officially.

After the independence, there came the first and the second republics. Then, there arose the Nigerian civic war in 1967 through 1970

After the civil war, the local administration was changed to divisional administration. Then, the areas making up the local councils were made to degenerate into various autonomous divisional councils. That was when Ezeagu town became autonomous and was calved out from Udi local government and became Ezeagu local government council area. Then came Oji-River local council area, Awgu local government area, Nkanu local council area etc.

We can therefore see from our explanations so far, that Nigerians have been striving to device the best means to address the socio-poilitical problems of the peoples of the nation. But unfortunately, all the efforts of Nigerians to that effect have not been fruitful to a reasonable degree.

For further emphasis on the efforts of Nigerians n solving the Nigerian’s socio-political problems, lets us consider what other authorities have to say about it. According to reforms of local government system in Anambra State of Nigeria 1976:2

In essence, the functions which local authorities should perform are those services and development activities which are basecally local in out look and should rightly devolve on local representative bodies. In other words local government administration will mean a system of local administration at the divisional and community levels intended primarily to inctiate and direct the provision of services and implementation of projects of the local communities and to co-ordinate the activities of the state government functionaries in the divisions in such a way as to ensure proper decentralization of functions and in the planning and execution of general development and management of their own affairs. In this way, it is hoped to faciliatate the exercise of democratic self-government, close to the grass-root of the society.

The above citation boarders on the objectives of the local government systems as they are stated with legal back-up in the above stated government document. But, a close look at the rate of development in local government areas in Nigeria would very often portracy a snail-movement in the rate of development among the component communities in them.

Take Ezeagu local government area of Enugu State as on instance, since it was carved out from Udi local government in 1974. It still counts as one of the poorly developed local government areas in Enugu State, inspite of numerious revenue sources available to it. Even the ones generated are not appropriately utilized. Materials are not left ut.

As a local government area made up of twenty-four communities or towns, Ezeagu local government area has at least ten towns or communities with out god motorable roads two third of the towns cannot a boast of Electricity supply, only a few of the entire towns, in the local government area has pipe-borne water or even water bore holes in them. Staff salaries are owned for many months now, resulting to protracted strike action of the local government workers. Schools in the areas are poorly maintained. Infact many schools have their roofs blown off by wind storm or damaged by many ther forces and are left unrepaired for many yaers now.

Motor parks at Iwollo Oghe, Nkwo Umumba, Orie Imezi Owa, Afor ugwu, Aguobu Owa and other notable places are poorly maintained most of the prominent markets in the area do not have standard buildings in them. Government hospitals are not built in many of the communities in the area. Thus giving the private medical practitioners the chance to exploit the poor masses; and in turn raising the cost of health care gulleys are many at places like: Imezi Owa, Okpogho, Awha, Mgbagbu Owa, Umumba, Obele-agu umana, Olo and a host of other towns; that are left umathended to over the years.

Rumours always go round that money generated by the council (both internally and externally) is not often used appropriately.

Also others say that staff do not give proper account of financial transactions they run for the council.

People in this local government area are therefore not very much happy with the situation of the development activities in the area.

This unhappiness manifests in: people residence to payment of taxes people’s decline in the process of electing local government officers; workers going n strikes and continuing in it for several months; people’s health condition being jeoprdized; in addition to a host of other consequent problems.

Owing to all the afor-mentioned conditions and subsequent problems, it therefore becomes pertinent for one to examine the standard at which the money generated by Ezeagu local government council is managed. That is to say that the object of this research work is to x-ray the possible causes of mismanagement of finance in Ezeagu local government council, with a view to suggesting lasting solution to the problem. Thus, there will be peace, understanding as well as even development among the communities in the local government area.

 

• STATEMENT OF PROBLEM

Since all the above stated conditions have constituted a cog-in-the wheels of the development activities in Ezeagu local government area, we could therefore rightly state categorically as follows:

• Ezeagu local government council functionaries had not been utilizing revenue generated within the local government area for the development of the area particularly with respect to the provision of infrastructure
• Infrastructural materials when provided were not always shared evenly among the various communities in the area.
• Some staff of the local government did not render proper account of their stewardship.
• The council did not monitor the activities of the staff very effectively
• Those acts of mis-management had generated a lot of unconformity between the government and people in the area.

 

• PURPOSE OF THE STUDY

This study has the following targets to achieve at the conclusion of it. That is to say, the purpose of this piece of work area as follows.

• To find out the reason (s) for which the council did not always utilize the money it generated judiciously.
• To establish the reason for which materials procured were not evenly distributed in the area.
• To determine the quality of the internal control system operated in the council
• To x-ray the impacts which the acts of mis-management of finance would have on both council and people in the area.
• To investigated the reasons for which some staff did not render proper account of financial transactions they run for the council.
• To provide possible solutions to the problems generated by the acts of financial mis-management in Ezeagu local government council
  • THE SCOPE/DELIMITATION OF THE STUDY

From our discussion so far, we can understand that the issue of financial mis-management deserves critical look in most of the local government councils in Nigeria. But for want of time and other reasons, the researcher has decided to focus his attention to Ezeagu local government council of Enugu State, for an in-dept work. Tis study is therefore focused mostly on the rate and degree of development in relation with the mode of management in Ezeagu local government area.

 

• RESEARCH QUESTIONS

We wish to probe further on the above stated problems as follows

• Why did the council not utilize the money it generated as appropriately as it was legally planned to be used?
• Why were unfratuctural materials when provided not always shared evenly among the communities in the area?
• Why did some staff f the local government council not render proper account of their stewardship?
• What impacts had the acts of financial mismanagement on the council and on the entire peoples of the area?

 

• STATEMENT OF NULL HYPOTHESIS (HO)

For the purpose of establishing the true solution to the problems stated above the researcher wishes to put forth the following null hypothesis;

1. The council did always utilize the money it generated appropriately.
2. Infractructural materials when provided were always shared evenly in the area.
3. Some staff of the council did account properly for their stewardship.
4. The acts of mismanagement had not generated several unpleasant conditions in the local government area.

 

• SIGNIFICANCE OF THE STUDY

For long time now, Nigeria as well as the whole world have been clamouring for democracy.

In effects, no democracy can survive without justice, equity and fairplay in government and several other human activities. It is therefore wise to investigated the extent of financial mismanagement in Ezeagu local government council, so that the council will know its various pit-falls.

Also, this work is capable of providing a nice medium for government public relationship in the area.

Again, through this study, the possible causes of financial mis-management in the council in question, would be made known and the solutions to the problems they thus generate, will be provided.

Furthermore, this piece of work, shall serve as a vital tool for promotion of peace, understanding and progress between the council of Ezeagu local government and the people in the area. Thus democracy would be fostered and consolidated in the area.

This peace of work is capable of serving as an effective guide to an active and duty conscious government in Nigeria, especially at local government level.

 

 

 

 

• DEFINITION OF TERMS

MIS-MANAGEMENT: This is a system of managing something wrongly or badly.

FINANCE:- This is a system of funding money or providing money for a project.

FINANCIAL:- Concerning money or finance. A way of giving financial support to something.

COUNCIL:- A group of people elected to manage affairs in a local government area or city.

BACKWARDNESS:- A way of doing something in the reverse direction.

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