The challenges facing the effective utilization of local government revenue in Nigeria A study of Ilaje local government

146

The Challenges Facing The Effective Utilization of Local Government Revenue In Nigeria.A Case Study: Ilaje Local Government 2015 To 2020

CHAPTER ONE

1.1 BACK GROUND OF THE STUDY

Nigeria as a sovereign nation operates a federal system of government i.e the federal government, state government and the local government councils.

Onwo (1992) Observed that each level of the three tiers of government derive its powers not from the magnanimity of the central government but from the constitution; each level of government has defined responsibilities assigned to it by the constitution. The implication of this is that the three segments of governments are mutually interrelated in a unified effort to make life worth – while for the masses.

The relevance of the local government councils as the government at the grassroot level is measured by the quality and quantity services rendered to the rural dwellers.

For the council to render meaningful services, in form of provision of basic amenities, construction and maintenance of roads, creation of employment opportunities for the citizens and pay staff salaries as and when due, money is undoubtedly required.

Without the availability of revenue, a local government council will not only be incapable of serving the people but will undoubtedly crumble. It therefore, follows that for the local government to discharge its statutory functions effectively, it should not only be adequately funded but such fund should be efficiently applied.

One of the fundamental problems in local government financial administration is the issue of Effective Utilization of Revenue Available to the Local Government in Ilaje local government may have tits unique problems that militate against its financial administration.
The problem of delay in payment of federal/state government grants to the local authorities.
The problems of accountability in the local government council.
Another problem is that of ineffective financial control and management both internally and externally.
Fifthly, the problem of financial mismanagement and embezzlement of available funds in local government council.
Finally, the problem of corruption as stated by Oluwale (2000) militate against the utilization of local government revenue.

______________________________________