Local Government Finance And Grassroot Development In Nigeria

Project and Seminar material for Public Administration

Abstract

This study was carried out to examine local government finance and grassroot development in Nigeria using Nembe Local Government Area Bayelsa State as a case study. The study was specifically set to ascertain whether the state government exercise financial control over the local government areas, ascertain whether state financial control help in the enhancement of financial planning at the local government areas, ascertain whether state grant and local government finances have any positive effect on community development, and determine whether the state government gives statutory allocation to local government as at when due. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprised of civil servants in Nembe Local Government Area, Bayelsa state. In determining the sample size, the researcher purposefully selected 200 respondents and 150 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables. While the hypotheses was tested Pearson correlation statistical tool, SPSS v23. The result of the findings reveals that state financial control help in the enhancement of financial planning at the local government areas. Furthermore the study also revealed that the state government does not gives statutory allocation to local government as at when due. Therefore, it is recommended that to drive grassroots governance and development in Nigeria, local governments must be granted the required autonomy, which entails the need to revisit the power relations between local government and the other tiers of government. To mention but a few.

Table of Content

Title Page
Certification
Dedication
Acknowledgement
Table of Content
List of Tables
Abstract

Chapter One:

Introduction

1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Limitation of the Study
1.9 Definition of Terms
1.10 Organisations of the Study

Chapter Two:

Review of Literature

2.1 Conceptual Framework
2.2 Theoretical Framework
2.3 Empirical Review

Chapter Three:

Research Methodology

3.1 Research Design
3.2 Population of the Study
3.3 Sample Size Determination
3.4 Sample Size Selection Technique and Procedure
3.5 Research Instrument and Administration
3.6 Method of Data Collection
3.7 Method of Data Analysis
3.8 Validity of the Study
3.9 Reliability of the Study
3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

4.1 Data Presentation
4.2 Analysis of Data
4.3 Answering Research Questions
4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

5.1 Summary
5.2 Conclusion
5.3 Recommendation
References
APPENDIX
QUESTIONNAIRE

Chapter One

Introduction

1.1 Background of the Study

Local government administration in Nigeria has had a tortuous history. It is an important process of government with significant consequences for national development. It is about mobilization of human and material resources at the grassroots level for societal progress and development.

Local government is supposed to be broadly participatory and responsive to the needs of the people at the local community levels, such as villages and towns. Yet, during the period when the British colonized Nigeria and the mid 1970‟s when a major reform initiative was launched, local government administration was essentially undemocratic and authoritarian, either directly colonial in nature, or in indirectly so, but indeed undemocratic, under various traditional governance authorities referred to as Native Administration by the British colonial rulers (Olaoye, 2015). The local government reforms introduced by the Murtala/Obasanjo military regime in 1976, sought to democratize the system, by introducing elective offices, and also tried to use the new system „to bring government nearer to the people‟ for the purpose of „grassroots‟ development (FRN, 1976).The desire by the government to maximize rural and grassroots development is one of the major objectives of local government system in Nigeria. The above role is very significant because 70% of the country‟s population live and operate within this area (Olaoye, 2015)

Historically, local government developed as an institution for the provision of essential services to the people especially at the grassroots. Through series of reforms over the years, the system has undergone so many changes in respect of structure and function. In Omenka‟s view (cited in Kalu, 2017), the reforms were necessitated by the need to properly define the various organs and functionaries of local government because of the realization that local government is an essential instrument of grassroot development.

According to the fourth schedule of the 1999 constitution of the Federal Republic of Nigeria,the exclusive function of local government includes, economic planning, collecting taxes, rates and the provision of social amenities like market, feeder roads, health services, portable water etc. among others. These functions simply defined the rationale behind the existence of local government system in Nigeria.

Local governments have a role to play in the economic development of any nation. Constitutionally, they should provide for the democratic representation of local communities. This role covers a wide range of responsibilities and services which impact heavily on the livelihoods of individuals. They are, for example, key to determining where infrastructure should be located, to protect our environment and to provide services which are crucial to quality of life-primary schools, primary healthcare facilities, drinking water, recreational facilities, roads and other services.

It is therefore expected that local government as sub-units should collaborate with the national government in the delivery of services towards the sustenance of democratic process.

Scholars have argued that democratic governance and grassroot development at the local government level is the vital tool for the social, political and economic development of Nigeria as a whole. It is worthy to note that Nigeria has been under military rule for a long time since 1966 and anytime there was a transition to civil rule raises citizen‟s expectation. The return to civil rule in 1999 after long years of military rule ushered in high citizen‟s development expectations at all levels of the three tiers of government.

1.2 Statement of Problem

The system of local government in Nigeria is get to develop nor has it contributed positively to community development. The local government areas have been facing enormous difficulties despite a considerable injection of fund into them. Such difficulties have been hindering the effectiveness and efficiently of their activities. Those problems arise from financial problem, delay in the receipt of federal grants etc and it has greatly hampered the local governments in rendering appropriate services and meaningful developmental programmes for the people.

The local government areas also lacked qualified manpower to plan for the development at the local level, this is due to the absence of modern techniques of management.

In view of the above, the state felt that effective control and efficient utilization of resources at the local government level will bring about ideal financial management, the operation of the join t account. It is against the background of these problems that the study seeks to assess the effect of local government finance and grassroots development in Nigeria.

1.3 Objective of the Study

The overall aim of this study is to critically examine local government finance and grassroot development in Nigeria. Hence, the study will be channeled to the following specific objectives;

Ascertain whether the state government exercise financial control over the local government areas.
Ascertain whether state financial control help in the enhancement of financial planning at the local government areas.
Ascertain whether state grant and local government finances have any positive effect on community development.
Determine whether the state government gives statutory allocation to local government as at when due.

1.4 Research Questions

The study will be guided by the following questions;

Does the state government exercise financial control over the local government areas?
Does state financial control help in the enhancement of financial planning at the local government areas?
Does state grant and local government finances have any positive effect on community development?
Does the state government gives statutory allocation to local government as at when due?

1.5 Research Hypotheses

Ho: There is no relationship between Local Government finance and community development
Ha: There is a relationship between Local Government finance and community development

1.6 Significance of the Study

This study provides a link between the local governments and their impact on grassroot development. The importance of this work cannot be overemphasized, because it is also unique and distinct from other studies on the ground that it assess and evaluate the impact of the programmes and projects on communities, it also get the views of dwellers and assess their level of participation and the constraining factors impeding proper policy implementation of the programmes and projects.

This study was embarked upon with the hope that, it will contribute to the body of knowledge on rural development and to help to proffer ways through which rural development can be enhanced in the local governments.

1.7 Scope of the Study

This study is structured to generally examine local government finance and grassroot development in Nigeria. However this study will be delimited to Nembe Local Government Area, Bayelsa state

1.8 Limitation of the Study

Like in every human endeavour, the researcher encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. More so, the researcher simultaneously engaged in this study with other academic work. As a result, the amount of time spent on research will be reduced.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.

1.9 Definition of Terms

Local Government:

Local government could be seen or defined as a legally constituted body, created at the local level, purely for development purpose. Put in another way, it is a springboard for rural development.

Development:

Development, like other revolutionary slogans, has various meanings to various people. In many countries, the word connotes industrialization. To some, it symbolizes the achievement of political intendance, in others, it indicates opportunity for education, the construction and provision of infrastructure for development, and the achievement of instantaneous, worldwide communication.

1.10 Organization of the Studies

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.

Chapter Five

Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on local government finance and grassroot development in Nigeria using Nembe Local Government Area Bayelsa State as a case study. The chapter consists of summary of the study, conclusions, and recommendations.

5.2 Summary of the Study

In this study, our focus was to examine local government finance and grassroot development in Nigeria using Nembe Local Government Area Bayelsa State as a case study. The study was specifically set to ascertain whether the state government exercise financial control over the local government areas, ascertain whether state financial control help in the enhancement of financial planning at the local government areas, ascertain whether state grant and local government finances have any positive effect on community development, and determine whether the state government gives statutory allocation to local government as at when due.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 150 responses were validated from the enrolled participants where all respondent are civil servants in Nembe Local Government Area, Bayelsa state.

5.3 Conclusions

In the light of the analysis carried out, the following conclusions were drawn.

The state government exercise financial control over the local government areas.
State financial control help in the enhancement of financial planning at the local government areas.
State grant and local government finances have any positive effect on community development.
The state government does not gives statutory allocation to local government as at when due.

5.4 Recommendations

Based on the findings of the study, the following recommendations are proffered.

To drive grassroots governance and development in Nigeria, local governments must be granted the required autonomy, which entails the need to revisit the power relations between local government and the other tiers of government.
The local governments in Nigeria to serve as the agents of grassroots development, the federal and state governments should provide an atmosphere conducive for each single-tier of government in Nigeria especially the local government to perform its functions effectively.
There is the need to put a mechanism in place to promote transparency and accountability at all levels of governance. Statutory allocation of local government councils should be reviewed upward. Prompt release of allocations from federation accounts should be looked into to avoid delay in executing council developmental projects. Local councils are also advised to look for ways of attracting industries to their areas which will propel economic development, employment and increase their revenue base. In this regard, it will be crucial to strengthen institutions’ horizontal accountability and anti-corruption bodies in order to build up the economic and revenue base of the councils. Civil society organizations, particularly at the local level, should be reoriented and empowered to hold elected officials accountable.