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MANAGEMENT OF LOCAL-GOVERNMENT FINANCE IN NIGERIA

ABSTRACT

This study examines the level of elasticity and buoyancy of existing internal revenue sources of Kahuna Local Government and considers the effect of community tax abolition on the financial position of the Local Government

as well as the escalating overhead costs in collecting such miscellaneous items of revenue as market fees and hawkers’ permit fees. Our findings revealed that the internal revenue base of the Local Government is so deplorable that the Local Government is now at the brink of financial insolvency. The much acclaimed statutory allocation of

funds from both the Federal and State Governments is not enough to pay the salaries of primary school teachers, let

alone financing other developmental or social programmes of the local government. In order to rescue the local government from total financial bankruptcy and in order to place it in a position where it will be able to finance its projects, we recommend for adoption a new method of property rate collection which is so simple that its implementation will not require any sophisticated valuation mechanisms and so its adoption cannot be handicapped by lack of sufficient valuation officers in the labour market. The new formula, if properly implemented, will fetch the local government an extra revenue of over nine million Naira per annum. If this money is at the disposal of the local government, it will in a position to effectively provide basic social services for the inhabitants of Kaduna Metropolis.

One of the other major findings of the study is the inability of the local government officials to balance the accounts of the local government for the past seven years. To remedy this situation, the study recommends that an independent body be set up by the Ministry for Local Government to assist in bringing the accounts up to date.

TABLE OF CONTENT

Title page- – – – – – – – – i

Approval page – – – – – – – -ii

Dedication – – – – – – – – -iii

Acknowledgement – – – – – – – -iv

Abstract – – – – – – – – – -v

Table of content – – – – – – – -vi

CHAPTER ONE

INTRODUCTION – – – – – – – -1

1.0 Background of the study – – – – -1

1.1 Statement of the problem – – – – -5

1.2 Purpose of the study – – – – – -6

1.3 Significance of the study – – – – -8

1.4 Research questions – – – – – -9

1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39

Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60

Conclusion – – – – – – – – -61

Recommendations – – – – – – – -62

Suggestions for further research – – – – -64

References – – – – – – – – -65

Appendix I – – – – — – – – -68

Questionnaire. – – – – – – – -69

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