CHAPTER ONE
1.1 INTRODUCTION
An effective local administration rests majorly on the
availability of human and materials resources to ensure development which the
nation could mobilize and if properly harnessed. In 1976, the federal military
government then issued guideline on local government in Nigeria. The reform
gave recognition to local government in Nigeria as the third tier of government
as incorporated successive Nigeria constitution.
This gave a substantial and unprecedented autonomy to
local governments in the country. With this autonomy, greater responsibilities
were assigned to meet the aspiration of the people that most of the local
governments are finding it difficult to cope with at the grass root.
Moreover, the principal aims of creating local governments
in Nigeria include;
i. To
serve as the third tier of government through which appropriate services and
development are made in responses to the wishes of local community through
their representatives.
ii. To
serve as the intermediary between government at the centre and local
communities.
iii. To
mobilize and utilize both human and material resources by engaging the people at
the local level in the government activities.
iv. To
facilitate the exercise of democratic self government closer to the grassroots.
v. However,
all local governments in Nigeria do no longer perform their responsibilities
simply because of Poor finances arise from inadequate revenue generated.
The
financial situation in Nigeria local governments is further aggravated by the
prevailing economic situation in this country which erodes the value of fund
available to provide essential social services to the people. The precarious
situation of the local government has been blamed on the total dependence of
federal and state governments for monthly statutory allocation and support from
higher level of government looking inward to improve their internally generated
revenue (IGR) rather than to bring
about economically feasible budgeting and desire development.
It is in the light of the above
necessity the calls for the needs to examine critically the internally revenue
generation could be improve upon to complement dependence on the higher
allocation instead on total dependence on the higher levels of the government
to survive.
1.2 STATEMENT OF
THE PROBLEM
Generally, the local government is faced
with myriads of problems ranging from corruption and embezzlement, poor
financing and mismanagement of funds which could be attributed to poor
leadership. This has deterred their development. The major issues that are connected with the revenue utilization is not
unconnected with total dependence on federal and state statutory allocation and
resultant effect is the poor revenue utilization and poor services delivery and
its attendants implications of poor governance for poor leadership.
1.3 OBJECTIVE OF THE STUDY
The objectives of the study are as
follows;
i.
To critically examine ways of
improving revenue utilization in local government level
ii.
To conceptualize the concept
of revenue utilization
iii.
To determine whether there is
effective revenue utilization at the local government level
1.4 SIGNIFICANCE OF THE STUDY
From the outlook, there is
need for the local government to improve their performance. However, the
research is significantly considering the people and the need to utilize
substantial revenue for its various sources in addition to federal and state
statutory allocation for avoidance, it will also help to identify some means of
utilizing revenue that has been neglected over years.
It will also be beneficial to grassroots,
because improved revenue utilization means improved standard of living in form
of provision of social amenities such as road, hospital, park, drinkable,
educative as it will be a reference point for researchers.
1.5 SCOPE OF THE STUDY
The researcher is intended to
the carryout using primary and secondary data. Primary that will be obtained
from each oral interview and questionnaire while secondary data will be
obtained from annual reports and estimates of Ibadan north local government.
The method of data analysis is
chi-square
1.6 STATEMENT OF THE HYPOTHESIS
Ho:
there is no correlation relationship between
effective revenue utilization and Nigeria local governments.
H1: there is correlation relationship between
effective revenue utilization and Nigeria local governments.
2.
Ho:
internal
control has not been put in place to ensure effective utilization of revenue
generated at the local level.
H1: An
internal control measure has been put in place to ensure effective utilization
of revenue generated at the local level.
3.
Ho: there
is no constitutional provision for revenue generation of local government level.
1.7 LIMITATION OF THE STUDY
In
carrying out this research work, no doubt on the number of hindrances are
likely to be encountered because this type of study entails a critical look on
effective revenue utilization in Nigeria local government such problems are:
1. Non- availability of
material:- this posses a big problem for the
researcher most of the libraries visited are not adequately stocked.
2. Financial constraints:- the
researcher was restricted by the meager financial capacity available to me.
Being a student with little or no means of income.
3. Time constraint:- the researcher was faced with limited time for
me to carry out the research work with project work. Another limitation is that
the study is limited to only one local government area.
1.8 DEFINITION OF OPERATIONAL TERMS
Local
government: according to Lawal, (200), local government can be defined as a
political sub-division of a nation in federal system which is constituted by
law and has substantial control of local affair which includes the power to
impose taxes or exact labour for prescribed purpose.
According to
William Robson (2006), defines local government as involving the conception of
territorial, non-sovereign community possessing the legal right and the
necessary organization to regulate its own affairs
REVENUE: revenue
can be defined as the funds generated by the government to finance its
activities. In other words, revenue is the total fund generated by (federal,
state and local government) to meet their expenditure for a fiscal year.
This
also refers to the grand total of money of income received from the sources of
which expenses are incurred. Revenue could be internal or external revenue.
Utilization: – utilization
can be defined as effective use of resources to promote general administration
in the interest of the people
1.9 HISTORICAL BACKGROUND OF THE ORGANIZATION
The
administrative headquarter of Ibadan north local government was located at Agodi
gate. It was established through the promulgation decree of 1991.
During the period
of military regime in 1991 headed by a military dictatorship president Ibrahim Gbadamosi
Babangida, despite the splitting of the old difference Ibadan municipal
government (IMG) in five
independence local government, namely;
i.
Ibadan north east local
government
ii.
Ibadan north- east local
government
iii.
Ibadan –south west local
government
iv.
Ibadan north west local
government
v.
Ibadan south-east local
government
The resident of these are mostly Yoruba
and other tribes and their religions include Christianity, Islamic and
traditional religion. The people of the area engaged in different economic
activities.
The administration is governed by duly
elected executive arm of government which is the chairman and the accounting
officer for the local government consist of eleven (11) wards and as at now,
each ward is represented by a councilor.