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CHALLENGES OF EFFECTIVE UTILIZATION OF LOCAL GOVERNMENT REVENUE IN NIGERIA (UYO)

CHAPTER ONE
1.1 BACK GROUND OF THE STUDY

Nigeria as a sovereign nation operates a federal system of government i.e the federal government, state government and the local government councils.
Onwo (1992) Observed that each level of the three tiers of government derive its powers not from the magnanimity of the central government but from the constitution; each level of government has defined responsibilities assigned to it by the constitution. The implication of this is that the three segments of governments are mutually interrelated in a unified eort to make life worth – while for the masses.
Uyo local government area was created out of Awgu local government in October 1996 by the late head of state General Sani Abacha. As one of the new local government councils, it is facing a very serious crisis of development since its creation. Some problems facing the council include: insufficient voice accommodation, sta quarters and oice
infrastructures. These problems seem to be insurmountable. Indigences of the local government are desirous of enjoying modern facilities, improved means of transportation, such as good road network and mass transit
transport services. These desires are in line with stated objectives of the local government such as construction and maintenance of roads, provision of health services such as maternity homes, health centers, sanitization, provision of primary education and many others – as sponsored by the federal militarygovernment. The federation (Nigeria) years book of 1983, outlined the aims of the local government system in the country. According to that document, one of the cardinal aims of the local government system is to make appropriate services and development activities, responses to local wishes and needs by delegating authority to local representative bodies.
The citizens expect the council to excel in developmental activities. They would like to please the community or communities in the local government area through the provision of functional feeder roads and public utilizations.
The council administration in the other hand complains of inadequate finance to meet up with the numerous responsibilities yearning for attention.
According to the guidelines for local government reforms or 1976, “it must be recognized that if meaningful local government is to be expected in Nigeria, much larger financial resources are needed” they also complain that sta
salaries alone drain a high percentage of the monthly allocation. Financial experts
postulates that money is at the center of developmental projects. Acquisition and proper accountability of funs are the pivot upon revolves. Adedeji (1979) capped it all when he declared that the success or failure and the effectiveness and ineffectiveness of local government depend on the financial resources
available to the individual local government and the way these resources are utilized.
From the foregoing, it seems that an empirical study into the revenue base of the local government system at this harsh economic period is not only useful but very vital.
It is therefore against this background that this project work is being undertaken with a view to discovering the problems of Eective Utilization of Revenue Available to Local Governments with particular reference to Uyo local government area of Akwa ibom state.

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