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LOCAL GOVERNMENT FINANCE AND UNDERUTILIZATION OF FUNDS IN NIGERIA

LOCAL GOVERNMENT FINANCE AND UNDERUTILIZATION OF FUNDS IN NIGERIA

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LOCAL GOVERNMENT FINANCE AND UNDERUTILIZATION OF FUNDS IN NIGERIA

CHAPITRE ONE

INTRODUCTION

1.1A SUMMARY OF THE WARRI-NORTH LOCAL GOVERNMENT AREA’S HISTORY

The administrative headquarters of the Warry North Local Government Area are located in Koko. It was established in September 1991, following the federal government’s formation of more local governments. When the defunct Warri local government area was partitioned into Warri South and Warri North.

According to the federal government’s 2007 census, the local government has a population of approximately 186,426 people. It is flanked on the north by the local governments of Ovia South and Oredo, on the east by the local government of Ethiope West, and on the west by the local governments of Ilaje and Ese-Odo in Ondo state.

Apart from the fact that the area is rural, all other towns and villages within it, with the exception of Koko and Ajabodudun, are only accessible via river transit. To put it another way, the local government is both rural and riverine.

As a result, the aforementioned urge for government engagement in providing basic amenities such as health facilities, electricity, portable water, jetties, and so on to provide much-needed relief to the various communities.

The Itsekiris and Ijaws make up the majority of the local government. The Warri traditional council, of which the Olu of Warri serves as chairman. The Itsekiris, also known as Iwere, are one people with one language, one monarchy, and the same laws and customs.

They are typically of medium height and have a pale complexion. Ilaju is a tribal mark for both men and women that consists of three small slashes on either side of the face immediately below the eyes.

They are dressed elegantly. The males dress in a long sleeve silk or lace material and a judge or other great quality wrapper that they tie around their waist down to their feet, accompanied by a fine quality pair of shoes.

They accessorise with a cap, trinket, or coral beads around their neck, as well as a walking stick. While the women dress in lace or other beautiful material top, a pair of wrapper mostly judge, head-tie, trinkets or coral beads, and a matching pair of shoes.

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

They also have many cultural dances that incorporate both men and women, such as the Alala, Omoko, and Eguen. The Abeli is only for men, whereas the Alala is only for women. The Itsekiris are decent natural people with a high level of civility in everyday life.

1.2THE STUDY ROOM

The neglect of rural areas by successive administrations has been a key reason of slow and poor growth in Nigeria. A large proportion of Nigerians (75%) reside in rural regions and are largely excluded from the development process.

The decision of the Armed Forces Ruling Council (A.F.R.C) during General Babandiga’s administration confirmed the Federal Government’s commitment to rural development in Nigeria.

This commitment leads to money raising at the local government level. The Directorate for Food and Rural Infrastructure (D.F.R.I.) and the Better Life for Rural Dwellers programmes, for example, were established.

Similarly, the local government council now receives around 75% of the Federation Account, as opposed to 65% previously. The Federal Government is making strong efforts to promote development at the grassroots level in order to ensure finances are available for rural development.

The federal government deposits the 25% grant directly into the Federation Account of local governments. However, it has been observed that certain local government councils have failed to use the monies allocated to carry out anticipated development initiatives within their authority.

Local government practitioners and research students, it is assumed, investigate the factor responsible for the poor utilisation of funds by Local Government Councils. As a result, the purpose of this research is to conduct a survey of the variables responsible for the inadequate utilisation of money by Warri North Local Government Council, Koko.

1.3 STATEMENT OF THE PROBLEM

The purpose of this research is to identify the elements that contribute to inadequate money utilisation in Local Government Councils. This study’s sub-problems include:

Identifying the factors responsible for fund utilisation;

To establish the condition of money in terms of whether or not they were used properly in local government; and

What element is responsible for the impact of poor fund utilisation?

1.4 RESEARCH QUESTIONS

As a result, the following research questions have been established for this study:

What are the causes of Warri North Local Government Council’s inefficient use of funds?

Was the money spent wisely by the Warri North Local Government Council?

What issues contributed to the local government council’s bad use of funds?

1.5OBJECTIVE OF STUDY

The goal of this research is to better understand the causes of Warri North Local Government’s inadequate use of cash.

1.6 SIGNIFICANCE OF THE STUDY

This study aims to collect credible information to help local officials and the general public understand the nature and status of the issues responsible for Warri North Local Government Council’s inadequate use of funds.

The purpose of this study is thus primarily to improve knowledge of the issues responsible for the Warri North Local Government’s inadequate utilisation of money.

Similarly, the results and recommendations presented in this research would allow Local Government officials and the general public in Nigeria to learn about challenges and related elements that are likely to affect the factors responsible for poor money utilisation by local government.

Such knowledge and awareness would strengthen their abilities to solve problems related with the variables responsible for inadequate money utilisation at the grassroots levels.

1.7 SCOPE OF THE STUDY

This study is limited to the variables responsible for Warri North Local Government Council, Koko’s poor use of cash.

1.8 DEFINITION OF TERMS

A fund is simply a sum of money set aside or subscribed to for a certain purpose.

Expenditure: The sum or amount budgeted for execution or money intended to be spent on development for a year or a period of time.

The term “local government” merely refers to the local government council. In other words, it merely refers to the local government of Warri North, Koko.

Inflation: The act of inflating currency credit in order to complete a specific project or job.

Finance simply refers to the administration of money matters or the method of raising and controlling public funds.

Execute: This simply means to build or construct.

B.O.Q. stands for bills of quantities. In other words, it is a list of documents developed for the goal of obtaining funding for project activity.

Tender: To display one’s certificate in order to determine whether one is eligible to undertake a project.

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