1.0. Introduction
1.1. Background of the Study
This research work, the financial management and accountability in Nigeria local government is an attempt to discover whether Nigeria local government make judicious use of the revenue or finance viable to them in facilitating social and economic development at the grass root level, using Oguta Local Government Area of Imo State as a case study. The local government council is the third tier of government in the hierarchy of administrative ladder of the country. It is thus the government of the grass root as it touches the hearth of the rural populace.
The acceptability of any government depended largely on the quality of leadership offered at the grassroots since 889 of the country's population are still living in the areas.
The local government system in Nigeria embraces accountability, in that, it brings those responsible for decision close to their electors.
This work shows the uniformity of local government and how it came to existence tracing it from 1976 local government reform policy promulgated by the late General Murtala Mohamed/General Olusegun Obasanjo's military regime.
It therefore, the aim of this study to make local government with emphasis on finance and to ascertain the extent to which management and accountability could greatly bring about the transformation of rural and marginal communities as envisaged in the 1976 guidelines for local government reforms and to suggest ways and means for improvements.
1.2 Statement of the Problem
It is an indisputable fact that local government in Nigeria was established for political administrative and service provision purpose.
The rate of involvement of officers dealing with public funds in acts ranging from misappropriation to fraud and embezzlement of public funds has put to question this integrity and reliability of those entrusted with the management of public fund. The problems can be summed up as follows:
- Ineffective financial control and management of resources available to them.
- The inability to proceed with essential capital development project become of limited revenue resources and availability of internal and external loans grants
1.3 Objectives of Study
The objective of the study is to examine the various made in local government reforms guidelines in 1976, 1988 and other recent reforms, local government edict of 1976 to 1992 of Imo State, financial regulation, memoranda and instruction. In addition, the study intends to investigate the various resources available to the local government and to explore ways of effective generation and improvement of revenue collection channels both internal and external in other to make fund available to finance capital development with a view of creating wealther and better life for our rural dwellers.
The study also aims at appraising the facilities available to ensure the local government rules and regulation. It is therefore, the aim of this study to make some incursion s into the operational procedures of local government with emphasis on finance and ascertain the extent which management and accountability could greatly bring about the transformation of rural and marginal communities as envisaged in the 1976 guidelines for local government reforms and to suggest ways and means for improvements.
1.4 Research Questions
The researcher, in a bid to analyze his finding made use of oral interviews and distributed questionnaires.
Below are the research questions that are being used for this project work:
- What are educational qualification member of staff?
- What is your position in the service?
- For how long hare you been in the services of Oguta local government?
- When Oguta local government came into existence, how many constituencies was it made of its population and the kilometer it covers?
- Does the level of skill and expertise of an officer accounts for the level of his/her proficiency in the discharge of his/her duties?
- Where does Oguta local government get their allocation from?
- Is it the level of human and material resources available to Oguta local government area that affects the management of finance and accountability?
1.5 Significance of the Study
The significance of the study is to stress the need for adequate financial management and accountability of Nigerian local government for improved performance and maximum efficiency of the head of affairs. The study would lead to a better understanding of the origin, causes and problems in the local government. The understanding of all these would enable the people in the local government to make objective judgment with regards to the activities of the heading the seats in the local government.
1.6 Scope of the Study
As the topic suggests, this is the study of what are obtainable in Oguta local government of Imo state. However, does not mean that there cannot be similarities between what are obtainable in other local government of the federation.
1.7 Limitation of the Study
The topic of this researcher work “the financial management and accountability in Nigerian local government” is limited to just local government are of Imo state, which is the case study of the said topic.
During the research process, the researcher had some constraints, some of these constraints are:
Time:
The researcher had limited time to gather the information needed for the project even from other local governments.
Financial Constraint:
The researcher has little constraints in finance, example of which is transport money to and for to getting information from different people and from different places.
Refusal To Give Information:
The researcher manage to convince some persons to getting information's from them. Most of them refuse giving the information needed for of losing their jobs. They give excuses that the information are official.
1.8 Definition of Terms
Financial Management:
This is the management activity that is concerned with the planning and the controlling of the firms financial resource. Ojiuko, A.A.
Accountability:
According to Akpan Asuquo this can be defined as a art of process of presenting financial information or records (revenue and expenditure of an organization either by oral means or by written) to the users of information.
According To B.N Okezie (2002) Accounting:
This may de defined as an art of recording, classifying and summarizing in systematic manner and in terms of money, transaction and events which are in part at least, of financial character and interpreting the results there bull (1984) defines accounting as being concerned with the qualification of economic events in moneys terms, in order to collect, record evaluate and communicate the result of past events and to aid in decision.
Finance:
This is the process where by funds are raised to meet the firms investment needs, government system. It is thus the government of the grassroots as it touches the heart of the rural populace its obligation is to render certain services to the communities, example, collection of taxes, maintenance of markets etc. source: Amayach, A.f. (1998).
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