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PROBLEMS AND PROSPECTS IN FINANCING LOCAL GOVERNMENT IN DELTA STATE A CASE STUDY OF ISOKO NORTH LOCAL GOVERNMENT AREAS

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.

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