BACKGROUND OF THE STUDY
In the Northern Nigeria
for instance, there are places, which are about seven hundred kilometers from
the state government headquarters. That is why it has been often said that if
the Northern state government collapses public
administration will continue existing, but if the native authority collapses, there will be chaos. (Onwe, 2004).This theory hold good to some other state of
Nigeria and it is not difficult to appreciate the importance of Local Government in the administration of Nigeria if one examines the functions of Local Government.
administration will continue existing, but if the native authority collapses, there will be chaos. (Onwe, 2004).This theory hold good to some other state of
Nigeria and it is not difficult to appreciate the importance of Local Government in the administration of Nigeria if one examines the functions of Local Government.
On the other hand the constitution of
the Federal Government of Nigeria gives authority recognition and uniformity to
the local government and equally gives the local government a stake in the
federal government collected revenue. It also assigned specific functions to
the local government. These functions as we know are very vital. They form the
aims and objectives of creating the local government as the third tier of
government bearing in mind the bringing of the government nearer to the people.
enlightenment is very essential and also identifies four programme
namely “capital formation, technical progress, human capital formation and
population control.
The above multi functional facts are
time and capital consuming. We can see that there is need for local government
to have adequate finances if they have to discharge their functional
responsibilities both effectively and efficiently to the benefit of the
citizenry and the nation at large. It is a known fact that local government in Nigeria now
receives at least 20 percent of the total collected revenue. Yet it is unable
to provide such essential services as their counter part in the United Kingdom,
United State and some other advanced countries
of the world.
In the United Kingdom towns and cities, a
country has been responsible for the provision of all local services such as
police, fire services, water and sewage disposal the Mid-Niger total collected
revenue. Yet it is unable to provide such essential services as their counter
part in the United Kingdom,
united state and some other advanced countries of the world.
In the United Kingdom towns and cities, a
country has been responsible for the provision of all local services such as
police, fire services, water, and sewage disposal the mid-twenty century.
Lapsey (2000), whereas their counter part in Nigeria cannot pay their staff
salaries without collecting their share of the statutory allocation or bank
overdrafts. This adds credence to the claim by many that local government in Nigeria are not
performing but Venuataman (1999) had
alternatives
(or supplementary) source of revenue if they are to be independent, autonomous
and effective. Apart from the statutory allocation, other broad categories of
revenue open to local government are: grant, loans, taxes and rates, rents
licenses, fees and fines earnings from commercial undertakings, interest and
dividends and other miscellaneous sources. The effectiveness of the local
government in the tapping from this broad spectrum of sources and the adequacy
in the disbursement of these generated revenue is what I am trying to find out,
using Onicha Local Government Area of Ebonyi State as my reference. However, my
yardstick will be effectiveness and efficiency between revenue generation and disbursement.