SOURCES OF REVENUE AND EXPENDITURE OF LOCAL GOVERNMENT AREA IN DELTA STATE A CASE STUDY OF STATE NORTH LOCAL GOVERNMENT AREA

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SOURCES OF REVENUE AND EXPENDITURE OF LOCAL GOVERNMENT AREA IN DELTA STATE A CASE STUDY OF STATE NORTH LOCAL GOVERNMENT AREA

ABSTRACT

The purpose for this research is to determine the relevance of a critical analysis of the sources of revenue and expenditure pattern of Isoko North Local Government Area, with reference to Isoko North Local Government. The research was carried out to discover the availability of expenditure and revenue in the Local Government; this involved going to Isoko North Local Government to administer questionnaire and interview on some key staff of the local government. It was revealed among others that revenue and expenditure is available for all categories of staff. Unfortunately, critical analysis of the sources of revenue and expenditure pattern has not enhanced productivity of the local government. It should therefore, be recommended that the local government should try as much as possible to encourage those staffers who put their effort to enable them contribute meaningfully to the advancement of the local government sources of revenue and expenditure in the local government.

TABLE OF CONTENTS

TITLE i

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENT iv

ABSTRACT v

TABLE OF CONTENTS vi

CHAPTER ONE – Introduction

1.1 Background of the Study 1

1.2 Statement of the Problem 4

1.3 Purpose of the Study 5

1.4 Scope of the Study 5

1.5 Research Question 6

1.6 Significance of the Study 6

1.7 Limitation of Study 7

1.8 Definition of Terms 8

CHAPTER TWO – Review of Related Literature

2.1 History on Isoko North Local Government Area 10

2.2 Internal sources on Isoko North 10

2.3 External sources on Isoko North 10

2.4 Motor Parks and Market Fees 14

2.5 Commercial Undertakings 14

2.6 Patterns of Expenditure 15

CHAPTER THREE – Research Design and Methodology

3.0 Introduction 17

3.1 Research Design 17

3.2 Area of the Study 17

3.3 Population of the Study 17

3.4 Sample and Sampling Procedure 17

3.5 Instrument for Data Collection 18

3.6 Validation of the Instrument 20

3.7 Reliability of the Instrument 20

3.8 Method of Data Collection 21

3.9 Method of Data Analysis 21

CHAPTER FOUR – Data Presentation and Analysis

4.1 Presentation and Analysis of Data 22

4.2 Summary of Result 30

CHAPTER FIVE – Discussion, Recommendation and Conclusion

5.1 Discussion of Results/Findings 31

5.2 Recommendation 32

5.3 Conclusion 33

5.4 Implication and Research Finding 34

5.5 Suggestion for Further Research 34

Bibliography 35

Appendix 37

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The study of Local Government in Nigeria is traceable to the traditional political system in the country local government administration. It was through the instrumentalities of tradition authorities. By this is meant the Ivies, Chiefs, age grades and village councils. It was through the societal interaction that authoritative allocations of values were made for the society.

In the past, most of these local governments were created to score cheap political points without due regard for their viability.

Apart from political and administration considerations that ought to be carefully examined in determining the viability of a local government in Nigeria, financial consideration is also a relevant factor that must be scrutinize and ascertained before considering a certain geo-political entity for a local government.

Local administration was strengthened further when Britain made its presence felt in Nigeria, in 1900 Lord Laggard introduced the system of direct rule into Northern Nigeria and by 1914 the system has spread to other parts of the country.

The colonial native authorities were established with the traditional rulers having absolute powers. The native authorities provided form of stable local administration which strengthened the base of the colonial government. However the concept of the local administration charged to that of local government in 1946 after the defect of conservatives and the coming into power of the labour party.

Before the coming of the Britain into Nigeria as mentioned above the institution of the traditional authorities were held sacred and is legitimized their actions and decision. In the North, the Emirs ruled in the emirates and developed a well organized fiscal system, a definite scheme of land tenure, a regular scheme of local rule and established judiciary with trained personnel interpreting the Islamic laws in the Southern part of the country. Local rulers with defined administrative system through the fiscal system were less organized.

Administrative consideration will include a number of factors, one of which is purely government annually. This item includes councilor’s allowances, personal emoluments of staff and miscellaneous expenditure like pensions and granitites etc.

The financial considerations include a number of factors. One is the revenue base the size and major sources of revenue such as taxes, rates and fees including market and motor part fees, etc. Since tax is paid by the taxpayers resident in the local government area of authority. The amount of revenue derived from tax depends on the number of tax payers in the area.

Thus, the size of the local government in terms of taxable population becomes important. There is also the ability of the area to execute development projects from its internal sources or from short and medium term loan. The magnitude of the council, reserves or end of year surpluses is another factor. This research work is on the analysis of the sources of revenue and patterns of expenditure of Isoko North Local Government Area of Delta State for the period of 1999 – 2001.

Isoko North Local Government Area is one of the Local Government Areas in Delta State. It was created in 27th August 1991 by the administration of General Ibrahim Babangida. The Local Government Area was carried out from Old Isoko Local Government Area.

They have secondary schools and primary schools. Still before the creation of Isoko North Local Government, the view of the society later became official position of labour party, a policy which favoured and advanced the demoralization of local Government. Thus, Local Government in this area was to become a means not only of political but also of economic development, performing functions which of had hardly concerned itself within the previous period.

The Local Government therefore assumed a development oriented posture.

The structure and working of the native authorities in the fears before 1950 all over the country had not pleased a number or educated Nigerians.

The Local Government is not richly endowed with many economic resources which should form basis of income generation for both the people and local government. With the establishment of town planning Authority of Isoko North, it is hope that residential, commercial and industrial layouts will be developed for the greater goal of the local government.

Markets and motor parks have been traditional sources of revenue for local government. Mostly every local government and the surrounding communities have been provided with pipe born water. It is necessary to single out the problem of erosion, perhaps as the most dangerous of all problems facing the Local Government Area. Even though none of the autonomous communities has escaped the wrath of erosion on its soils, roads and farms, some towns have sulfured more than the others. Particularly noted is Obiagu under Isoko North Local Government where almost half of the town has been gulped by gully erosion. The situation demands a comprehensive study of the problem in the local government area and conscious intervention by both the state, federal and international agencies.

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