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PROBLEMS OF
REVENUE ALLOCATION TO THE LOCAL GOVERNMENT
ABSTRACT
This
research work identified “The problems of revenue allocation in the local
government” the information of the research revealed to the researcher that
many factors are responsible to the problems of revenue allocation in local
government e.g. Diversion, poor planning committee, population, political
instability and equity of local government. Recommendation were made in the
light of the researcher findings. In order to avoid problems of revenue
allocation in local governments, the federal government should reform the
constitution so that the local government would be able to receive their
revenue/share to them directly from the federal government. A board should be
establish that would effectively control allocation fund and make them known
what expenses they should use for on air. Based on the research discoveries,
before an application to be employed into the local government department
he/she should be made to undergo screening through the experts as to ascertain
that the right qualified are confirmed to be employed.
CHAPTER ONE
1.0
INTRODUCTION
Nigeria is
constituted with three levels of government, the central government. (Federal)
state government and local government levels. All these levels are established
with certain functions to perform.
According to
Yusuf and Dauda (1998) local government are expected to be agent of development
in their various localities. They are expected to provide the local communities
with essential services. The civil servants in the local government have to be
paid, offices have to be constructed and social services like health clinics,
schools, play grounds, motor parks, markets maintenance of good sanitary
conditions, among other facilities, have to be provided. To realize these basic
functions, local government must have a steady source of revenue which includes
external and internal sources.
Knowing how
important a local government is, the researchers try to look at the problems of
revenue allocation to the local governments. A study of Suleja Local Government
of Niger State so as to be able to make assert of suggestions and
recommendations as to possible solution of these problems of revenue allocation
to the local governments.
1.1 BACKGROUND OF THE STUDY
The 1976
Federal guideline of local government reforms table ‘A” provided a clear
definition government as “A government at the level exercised through
representative council established by law to exercise specific power within
defined areas”. The power should give the council substantial control over local
affairs as well as the staff, institutional, financial power to direct the
provision of services and determine and implement projects so as to complement
the activities of the state and federal government in their areas.
Also
according to Encyclopedia, World Book (1983) local government generally refers
to the “government of an area smaller than a country, state or province. Such
areas include countries, cities, towns and villages, each unit of local
government as some important responsibilities for the welfare of its citizens
and provides certain services”.
According to
ANYAELE (1991) a local government may be defined as “Government at the local
level established by law to perform specific functions within defined areas”.
Local governments are vested with substantial power to take control over local
affairs.
Ezeugo
(2002) define local government as “the government nearest to the people at the
grass roots level”. It is established to cater for the welfare of the people at
the grass root and bring development to door step of the local populace.
According to
Akpan, (1934) local government “is a public organization authorized to decide
and adminster a limited range of public policies within a relatively small
territory which is a sub-division of a regional government”.
In the light
of the definitions of local government as government at the local level and
with the numerous functions provided to it. As early as 1976, the federal
government recognized that lack of adequate finance and subventions is one of
the factors responsible for the inefficiency and the collapse of the pre 1976
local government system all over the country. Therefore the federal government
set to tackle this problems right from the inception of the reforms.
In 1982, a
clear revenue allocation formula was made to the three tiers of government
under the revenue allocation act. The federal government on its part to live up
to its responsibilities. But there were
still problems about the money reaching the destination because the law
did not allow the federal government the freedom to give money directly to
local government.
The
researcher therefore, undertook the study to critically analyze the problems
and suggest possible solutions to the problems.
1.2 STATEMENT OF THE PROBLEM
The decision
by the researchers to undertake this study, the problems of revenue allocation
to the local government, a study of Suleja Local Government of Niger State was
bone form the need to investigate into the Problems of allocation of revenue as
well as those affecting all other parts of development and welfare of local
government. Despite the law was passed which made provisions for this
allocation, and state governments agreed
to contribute form her internally generated income to local government.
In addition
to the above, the Niger State local government Edict of 1976 part (xi) made
general financial provision, subject to the provision of this part that all
revenue of local government shall be applied to the administration and
development and welfare of the area over which its authority extends. It is for
the purpose of the above mention problems that the study focuses its attention
on the problems of revenue allocation to the local government.
1.3 OBJECTIVES OF STUDY
The reasons
for study this great topic are itemize as following:
To find out
how state control administration of local government.
To promote
welfare and encourage the membership participation in decision making process
at local level.
To organize
its membership political education.
To ensure
proper recording of local government source of revenue for execution of
official project.
To enable us
know much about government policies and programmes
And to know
the inter-government relation between one level of government and in other
level.
1.4 RESEARCH QUESTIONS
Research questions
are those questions asked in order to locate answers to research problems. The
research work was embarked to investigate the problems of revenue allocation in
Suleja local government area of Niger state.
There were
some problems which the researcher envisage and prompted me to undertake the
research work. Some of these problems are:
Why the
funds allocated to local government were not actually transferred to the
account of local government by state government?
How
effective does the administrative management of revenue board allocates funds
to local government?
To what
extent has the problems of revenue allocation affects local government welfare
development?
1.5 RESEARCH HYPOTHESIS
To this
effect and in an attempt to fully assess and identify those problems been faced
by local governments in Nigeria, the researcher wish to formulate the
following:
Excessive
control by state government on local government affairs hinders the proper flow
of revenue allocation to local government.
Lack of
adequate allocation to local government affects their development projects.
Absence of
financial experts in the local governments affects the rate of revenue
generation in the local government areas.
1.6 SIGNIFICANT OF THE STUDY
This study
is carried out basically to look into the problems of revenue allocation to
local government with particular reference to Suleja local government of Niger
State. Also it will be directed to or focused on the unrealistic transfer of
funds to the account of the local government by the state government.
It will
create awareness with the problems encountered by revenue allocation to the
local government. And it will also fund the possible solution to the problems.
This study
after been completed will be very advantageous to local governments to know how
the allocation of revenue is been distributed by the federal govern
governments.
1.7 SCOPE OF THE STUDY
This study
seeks to undertake on overview of all the local governments in Nigeria. But
study is to cover only Suleja local government areas as a case stdy, which is
one of the many local governments in Nigeria.
However, the
necessary reference would be made to other local government and comparism to
assess the performance of this local level base on allocation output.
1.8 DEFINITION OF TERMS
Terms are
words with specific meanings. The terms to be used for this study as the topic
suggest are problems, revenue, allocation, local government, policy,
administration, administer, subvention, overview, and encounter.
PROBLEMS:Simply
means question or solutions involving difficulties.
REVENUE:
Ganiya O. G. (1998) this refers to the money that a government receives form
taxes or that an organization receives form it business. It also refers to the
amount of money collected by the government form their usually regular sources
of revenue.
ALLOCATION:
Simply means to distribute share out or to give each his share.
LOCAL
GOVERNMENT: Is the system of government of a town or an area by elected
representative of the people who live there, or the organization that is
responsible of a local area and for providing services.
POLICY: Is
the plan of action agreed or chosen by a political party, or a company.
ADMINISTRATION:
Simply means the activities that are done in order to plan, or organize and run
a business, school or other institution.
ADMINSTER:
Simply means to manage and organize the affairs of a company, an organization
or a country.
SUBVENTION:
Refers to the amount of money that is given by a government to help an
organization.
OVERVIEW: It
means a general description or an outline of something.
ENCOUNTER:
To experience something, especially something unpleasant or difficult, while
you are trying to do something else.
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