A CRITICAL ANALYSIS OF THE PROBLEMS OF FINANCIAL MANAGEMENT IN LOCAL GOVERNMENT COUNCILS IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Local government in Nigeria has been changed by the constitution of the responsibility or grassroots development and such recognized as the third time of government. There has been a number of national conference and seminars in local government in various parts of the country. All these, one effective system of local government in Nigeria, this study is mortised by the derive to ascertain the reason why in spite of series of seminars and conference on local government administration especially on financial management in efficiency and Mismanagement of resources are still rapid and uncontrollable in local government. The introduction of 1976 local government reform in Nigeria made more specific duties of government which has contributed in no small measure towards making people feel more of the need for a strong government at the level more result oriented.

Unfortunately the local government has not been able to achieve most of its adequate financial resources which has been a major problem leading to instability and inefficiency as many local government are incapable of government in their different localities with the introduction of the 1976 reform position of local government system because the system made it possible for the local government to raceme most of their revenue from the federal state government. But the dependency on the statement for therefore it revenue have some notable disadvantages grants from centre. This could affect the cordiality of their service. In addition of grants from the central government also receive revenue through internal sources like fees and fines local licenses, rates on local government property interest and dividends retirement and miscellaneous income (slaughter fact etc.). Most often this revenue are not effectively collected and misappropriated out mostly be members of staff responsible for collecting it.

Aboh Mbaise local government is one of the oldest local governments in Imo State. It was created in 1981. Geographically, Aboh Mbaise has a boundary with delta state in the North; it is bounded by rivers state. At local government bounding in the North. It has bounding with Aguata local government at the east. It has boundary with Ihelas local government. Aboh Mbaise local government is divided into three zones namely Enyiato local government, Ngwu local government, and okewuwu local government. In the light of this therefore research as has been done in three states the financial management in order to final solution in solving them. In an attempt to do this we started with chapter one the introduction, background of the study, statement of the problem, objective of the study, scope of the study, chapter two deals with review of the related literature. Chapter three deals with the design and methodology. These are subdivided in to areas of the study. Population of the study, sampling procedure. Techniques used instrument, method of data collection and method of data analysis. Chapter four deals with presentation of and analysis with focus on testing of hypothesis and summary of the result. Chapter five deals on discussion, recommendation and conclusion of the research implication of the research finding and suggestion for further research.

1.2 STATEMENT OF PROBLEM

The research is concerned with the problem of financial management in Imo State (a case study of Aboh Mbaise LGA) with the local government reform of 1976, local government become recognized as the throatier of government rested with the statutory power to discharge the duties and responsibilities of a government in order to achieve set objective and an efficient accounting system. It will be very difficult for local government management to keep close control of financial transaction, policy formulation mobilization and expending their resources. But things still differ in Nigeria local government because there have been complaints of inefficiency and Mismanagement of local government revenue and as a case of Aboh Mbaise local government their case is not different. For example: 1. The council could not execute the proposed project of reconstruction regarding the major road that lead to Aboh to Ahiara and Chokonaeze to Mubutu. 2. They could not develop a good project like schools in Aboh Mbaise. 3. The council Mis-manage our funds while we don’t have electricity in our local government and pipe born water in Aboh Mbaise.

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