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This project therefore, shows past and present development in the system of financing the Local Government. It exposes the problems and prospects of planning at the Local Government level. It also shows how there financial and fiscal relations affect the fiancé and performance of the Local Government. This study shows the major element in the financing of Local Government  like the sources of internally generated revenue system of budgeting and planning cost and control as well as execution of policies. A study of Ihete-Uboma Local Government is considered the method used in the study of the research design in secondary and primary data structure and it reduced to the accounting determent of the Local Government, which was collected from the accounting department of the Local Government








Right from time immoral man was faced with the problem of managing himself and the environment surrounding him. He was faced with problems like providing security for himself and how acquired resources that were not within his reach to improve his standard of living. The c0-existence of men on earth necessitate the combination of scale resources, which were used t o achieve better development process.

These benefit of amalgamated resources and idea must reach to the nook and cronies of a defined area of jurisdiction, managed by credible hands must be accountable to the people that sent them to local government administration. These is a third tier of government that was charge by law or constitution to administer the function of government and see the welfare and interest of the local dwellers under the local government system.

During the colonial era, local administration was rested on officers appointed by the colonial masters. The appointees had executive, legislature and sometime judicial functions. Characterizing Nigeria local government system during and after colonial period till 1976 was non-uniformity of the system, each state operated its own local government unique to it while propelled the federal military government to reform local government administration in 1976, during Mohamade Obasanjo regime. This 1976 local government reform marked the inception of the modern local government administration in Nigeria.

This reform was timely because Nigerians needed a local government system that will serve as machinery forever and accelerated development. We need a local government administration that will serve as a vehicle for increased democratic processes at the grass-root and provide the foundation for stability of the national political system. The local government has the financial powers to initiated and direct the provision of services stated, briefly local government perform proprietary developmental and other functions that may be assigned to them from time to time by the authority that established them.

It is to this effect that the local government are usually empowered to sources for revenue independently in addition to the periodic statement allocation from other superior bodies like the federation specific function aid responsible were assigned to them will powers to raise revenue through taxation and other sources such as property rates, fines, fees on license etc. with the guideline prescribed by legislation.

To guarantee the effectiveness and efficiency of local governments, the 1979 constitution granted the local government the status of a third tier system of government to make them function effectively and efficiently as agents of local democracy aid local development. It also granted them power to strengthen their revenue base through independent taxation. Again, the revenue allocation act of 1981 provided for the federal and state government to contribute ten percent (10%) of their actual revenue to the local government.

According to Okoli (2005) the Dasuki committee on local government reforms, the statuary allocation of local government was increased to 15% on addition to contribute 5% of their total revenue. Besides, the 1979 constitution also provided for a joint account with local government which the federal and state government paid their shares of hares of statutory allocation of local government from where finds are supposed to be disbursed to local government by the national assembly.

Ogonna, A. (1996) postulated that Babangida’s administration also led to the allocation of 20% of the federal account to local government in addition to granting them more powers to source revenue through taxation and grants as aid from the federal and state government. Despite all these, there has been appreciable improved in the fiancé of local government especially in the urban area where the availability of most local government are rejoicing because of quick revenue bases.



Over the years, there have been a lot of controversies as regarding to the poor performance of the local government in the country. As some people view the dismal performance of the local authorities as being the direct out come of lack of finance and low revenue capacity, others has also agreed that the problem of the local government is not fiancé but lack of the right person who posses the necessary power for effective and efficient management of resources. It has also been argued that most local councils especially in the rural areas rely on the statutory allocation as their major source of revenue,. They are received as not being productive in the source that they project and policies. The revenue yielding machinery and the system of revenue collection have been flawed on the grounds of non-availability of qualified manpower, lack of public enlightenments over ambitions and corrupt revenue officers addition to other factors. In some cases, there has been lack of proper planning and budgeting which would have helped local councils to operate health financial system.

The above factor have always resulted to lack of finance as there are not appropriate procedures to collecting from the various sources hence leading to a situation where by the bulk of internally generated revenue goes into private purse instead of the government. The billion dollar questions therefore, “what are the appropriate way to increase local government revenue beside the period statutory allocation from the federal and “what extent has lack of planning affected the fiancé and performances of the local government”? Moreover, what steps should be taken to ensure the effective and efficient panning and financing of local government? These questions are inevitable in a study of this nature.


  1. To identify the need for financial management and accountability in the local government?
  2. To know whether the leadership of the government accountable to the people of the locality?
  3. To find if financial management and accountability help in achieving the goals of the local government?
  4. Why does local government have accounting department?



  1. Is there any need for financial management and accountability in the local government?
  2. Is the leadership of the government accountable to the people of the locality?
  3. Does financial management and accountability help in achieving the goals of the local government?
  4. To know why local government have accounting department?



This project is been carried out by the researchers because, they added responsibilities to the local government and their role in national and urban development all of which have exposed the state of their fiancés. The recent reforms of the local government system as well as the creation of more local governments have made the study to be more necessary than before. Moreso, the changing role of local councils from services oriented to development oriented. This is made it inevitable for their financial system to be over-hauled in order to enhance their revenue capacity as well as planning budgeting procedure of management. Local council also serves as an agent of urban areas and this makes the questions on the financial system of local government highly unavailable.




Scope of study is a general outline of what the study (eg class or seminar) will cover “scope defines the parameters this can be an object, or a theory process activity. Describing either future, current or east knowledge or statements of descriptive activity, experience etc. scope always unless of the unlimited nature (specific) will define specific boundaries such as manual is used to defined employee duties or company procedures studies are used to obtain and knowledge to arrive at a logical finishing point. The definitions of scope are the “borders” where the objective, knowledge, instruction or outcome of the activity is found.

In terms of a research paper, the scope of the study refers to the parameters in with the study will be operating in you will want to make it as clear as possible, what you will be studying this also helps you remember and keep with in the accepted range of your study. This also reminds a researcher, that his method of investigation should be centered around trying to solve the problem within the provide scope



Some difficulties were encountered in the course of getting information and data for the study. These constants included the limitation of time for the study to be carried, finance, lack of past records and vital statistics attitudes of respondents and unwillingness on the part of government officials to release source official documents. All these contributed in preventing the availability of certain information that would have helped me to give more detail about the Ihete-Uboma local government financial management and accountability.



Local Government:- Local Government refers to the third tier of government in the country or federal system of government.

Revenue: – This is the total amount of money which accrues to the local government from both internal and external sources

Fiscal Federalism: – This means the existence of two or more levels of government each with independent tax and expenditure power.

Budgeting:- This refers to a financial statement of the proposed revenue and expenditure of the government for a given time usually a year.

Accountability: – This refers to the process and procedures by which public offices are meant to give account for public expenditure.



This research work is organized in five chapters, for easy understanding, as follows. Chapter one is concern with the introduction, which consist of the (background of the study), statement of the problem, objectives of the study, research questions, research hypotheses, significance of the study, scope of the study etc. Chapter two being the review of the related literature presents the theoretical framework, conceptual framework and other areas concerning the subject matter.     Chapter three is a research methodology covers deals on the research design and methods adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study


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