The Divisional Government Finance and Under Utilization of Funds in Nigeria A Case Study of WarriNorth Local Government Council

The Divisional Government Finance and Under Utilization of Funds in Nigeria

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Reference ID: PS-12696-TM

DEDICATION

This research material titled “The Divisional Government Finance and Under Utilization of Funds in Nigeria” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Finance, Book Authors and Profound Scholars of existing or related project material on “The Divisional Government Finance and Under Utilization of Funds in Nigeria” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES


CHAPTER ONE:

Introduction

  • 1.1 A Brief history of Warri-North Local Government Area
  • 1.2 The study setting
  • 1.3 Statement of problems
  • 1.4 Research questions
  • 1.5 Purpose of study
  • 1.6 Significance of study
  • 1.7 Scope of study
  • 1.8 Definition of terms

CHAPTER TWO:

Literature Review

  • 2.1 Local Government
  • 2.2 The factors responsible for poor utilization of fund: (A case study of Warri North Local Government)
  • 2.3 What is Fund
  • 2.4 Sources of fund in a local government
  • 2.5 Internal Revenue
  • 2.6 External Revenue
  • 2.7 Poor utilization of fund
  • 2.7.1 Improper Planning
  • 2.7.2 Lack of feasibility studies before awarding contracts
  • 2.7.3 Poor location of project
  • 2.7.4 The Execution of wrong choice project
  • 2.7.5 Inflated prices of contracts and materials
  • 2.7.6 Over-staffing
  • 2.7.7 Agricultural project
  • 2.7.8 Mismanagement of fund by the top management staff
  • 2.7.9 Political instability

CHAPTER THREE:

Research Methodology

  • 3.1 Introduction
  • 3.2 The study design
  • 3.3 Sampling method
  • 3.4 Data collection instrument
  • 3.5 Validity and reliability of instrument
  • 3.6 Statistical analysis of data
  • 3.7 Observation

CHAPTER FOUR:

Analysis Of Results And Interpretation

  • 4.1 Introduction
  • 4.2 Population of the study
  • 4.3 est of hypotheses
  • 4.3.1 Oral interview schedule
  • 4.4 Discussion of results/findings

CHAPTER FIVE:

Summary, Recommendations And Conclusion

  • 5.1 Summary
  • 5.2 Recommendations
  • 5.3 Conclusion
  • BIBLIOGRAPHY


The Divisional Government Finance and Under Utilization of Funds in Nigeria (A Case Study of Warri-North Local Government Council)

CHAPTER ONE


Introduction

1.1 A Brief History Of Warri-North Local Government Area

The Warry North Local Government Area has its administrative headquarters at Koko. It came into existence following the federal government creation of more local governments in September 1991. When the defunct Warri local government was divided into Warri South and Warri North local government areas.

The local government has a population of about 186,426 as reported in the 2007 census carried out by the federal government. It is bounded on the north by Ovia south and Oredo local government areas, on the east by the Ethiope west local government area and on the west by the Ilaje and Ese-Odo local government in Ondo state.

Apart from the fact that the area is a rural setting, all other towns and villages within it except Koko and Ajabodudun are accessible only by the means of river transportation. In other words, the local government is not only rural but also riverine.

The above therefore, call for government’s intervention in providing basic amenities such as health facilities, electricity, provision of portable water, jetties, etc to bring the much-needed relief to the various communities.

The local government is made up of mainly the Itsekiris and the Ijaws. The Warri traditional council in which the Olu of Warri serve as the chairman of the council. The Itsekiris, popularly called Iwere, are one people, having one language, one kingdom and the same law and custom. They are generally formed just a little above the medium stature and of a light complexion. The tribal mark for both men and women are usually; three small cuts on each side of the face just below the eyes, this is called Ilaju.

They are tastefully dressed. The men dress in a long sleeve silk or lace material and a judge or other fine quality wrapper which they tie round their waist down to their feet with fine quality pair of shoes to match. They top this with a hat, trinket or coral beads round their neck and also a walking stick. While the women dress with lace or other fine material blouse, a pair of wrapper mostly judge, head-tie, trinkets or coral beads and a pair of shoe to match also.

The Itsekiris have such cultural festival as Olu of Warri coronation yearly (Oye Ekoro), the Oreomi or river goddess in every three years in Koko, the Company or Masquerade festival also in Koko and the Okere juju festival each year in Warri.

They also have different cultural dances like, the Alala, Omoko, Eguen etc which involve the male and female folks. The Abeli is just for the male folks and the Alala for the female folks. The Itsekiris are good natural people whose standard of courtesy in everyday life is high.


1.2 The Study Setting

A major cause of slow and poor development in Nigeria has been the neglect of the rural areas by successive administrations. A good number of Nigerians (seventy-five percent) live in the rural areas, and are hardly included in the scheme of development.

The decision made by the Armed Forces Ruling Council (A.F.R.C) under General Babandiga’s administration was a confirmation of the Federal Government commitment to the development of the rural areas in Nigeria. this commitment gives rise to the raising of fund to the local government level. for example, the Directorate for Food and Rural Infrastructure (D.F.R.I), and Better Life for Rural Dwellers programme were initiated.

In the same vein, the local government council are now granted about seventy-five percent (75%) of the Federation Account as against sixty-five percent (65%). These bold attempts by the Federal Government are to promote development at the grassroots level so as to ensure funds are available for the development of the rural areas. The Federal Government pays the said twenty-five percent grant directly into the local government Federation Account. However it has been observed that some of the local government councils have failed to utilize the funds met to carry out expected developmental projects in their areas jurisdiction.

It is believed that the Local Government practitioners and research students examine the factor responsible for the poor utilization of funds by the Local Government Councils. Therefore, this research hope to carry out a survey of factors responsible for poor utilization of funds by Warri North Local Government Council, Koko.


1.3 Statement Of Problems

This study is planned to determine the factors responsible for the poor utilization of funds in Local Government Councils.

The sub-problem of this study includes:

  1. To identify the factors responsible for utilization of funds;
  2. To determine the status of funds in terms of whether or not they were properly utilized in the local government; and
  3. What factor is responsible for the influence of poor utilization of funds.

1.4 Research Questions

The following research questions are therefore set for this study:

  1. What are the factors responsible for the poor utilization of funds by Warri North Local Government Council?
  2. Were the funds properly utilized by warri north local government council?
  3. What are the factors that influenced poor utilization of funds by local government council?

1.5 Purpose Of Study

The purpose of this study is to facilitate the understanding of the causes of poor utilization of funds by Warri North Local Government.


1.6 Significance Of Study

This study hopes to accumulate valid information to enable local officials and public in general understand the nature and status of the factors responsible for poor utilization of fund by Warri North Local Government Council.

The significance of this study therefore, is basically to enhance the understanding of the causes of the factors responsible for poor utilization of funds by the Warri North Local Government.

By t he same token, the findings and recommendations made in this report will enable Local Government officials and the general public in Nigeria learn about issues and related factors, likely to affects the factors responsible for poor utilization of fund by local government. Such knowledge and understanding will enhance their capacities in the solving of problems associated with the factors, which are responsible for poor utilization of fund at the grassroots levels.


1.7 Scope Of Study

This study is limited to the factors, which are responsible for the poor utilization of funds by Warri North Local Government Council, Koko.


1.8 Definition Of Terms

Fund:

This simply means, a sum of money put aside or subscribed for a special purpose.

Expenditure:

This is the sum or the amount budgeted for the execution or money meant to be spent on development for a year or for a period of time.

Local Government:

This simply refers to the local government council. In other words, it simply refers to warri north local government, Koko.

Inflation:

The act of inflating of credit of currency for a particular project or job to be done.

Finance:

This simply means, a management of money affairs or the method of raising and controlling public money.

Execute:

This simply means to construct or to build.

B.O.Q.:

This means the bills of quantities. In other words, it is a schedule of materials prepared for the purpose of which the fund is granted for project work.

Tender:

This means to show one’s certificate in order to know whether he/she is qualified to execute a project.

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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