This study is to analyze critically how the expenditures and revenue patterns of local government administration can lead to the development of the nation. This research work has been structured into five chapters to make for easy comprehension. The study also investigated the revenue and expenditure pattern of local government administration in Nigeria especially that of Isi-Uzo local government. It further examines the comparative study of such pattern i.e the revenue and expenditure pattern.    Data were collected through primary and secondary sources. The primary sources of data are mainly through personal interviews and distribution of questionnaires while the secondary sources included textbooks, internet, articles, journals, etc. The methods of statistical analysis included the use o tables and percentage analysis. The study observed that various local government authorities have been under funded which makes them not to have been under-funded which makes them not to live up to their expectation in services. The study also recommended that internal control measures and other effective utilization of government funds or resources should be strengthened to reflect transparency and accountability. Therefore, all efforts should be made to ensure that the internal control measures are not weak as this would play a key role in ensuring and optimizing national development.

Chapter One: Introduction 

1.1 Background of the study

1.2 Statement of problem

1.3 Objectives of the study

1.4 Research Question

1.5 Significance of the study  

1.6 Scope and Limitations of the study  

1.7 Definition of Terms  

References 

2.1 Historical development of local government in Nigeria 

2.2 The local government and national development     

2.3 Structure of local government finance in Nigeria

2.4 Objectives and sources of revenue of local councils 

2.5 Expenditure pattern of local governments   

2.6 Budgeting and internal control of local government operations  `

2.7 Consolidated revenue fund (CRF) and problems of local government

2.8 Factors militating against the effectiveness of local government in Nigeria

2.9 Imperatives for optimizing the effectiveness of local government in Nigeria

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY 

3.1 Research Design

3.2 Area of the study

3.3 Population of the study

3.4 Determination of sample size

3.5 Research Instrumentation

3.6 Validity of the Research Instrument

3.7 Reliability of the Research Instrument

3.8 Methods of Data Presentation and Analysis

References 

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Data Presentation and Analysis

CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSIONS 

5.1 Summary of findings

5.2 Recommendations

5.3 Conclusions

Bibliography  

INTRODUCTION

1.1 BACKGROUND OF THE STUDY  

In Nigeria, for a long time now, the local government arm of government has been a down-graded aspect of leadership. The local government presents the best and closest way of effecting long-lasting changes in the lives of the masses. Being close to the people and as rightly empowered by the constitution; the local government has the highest impact in the development index and growth curve in the localities of our dear nation. 

The local government has been defined as “a government set up by a central or state government as a means of ensuring effective administration at the grass-root. In other words, the local government involves in the participation of the governing process at the grass-root level and due to its closeness to the people, it has as its aim, the meeting of specific grass-root needs of the people.

In Nigeria, the local government system operates within the presidential model. The chairman of the local government is directly elected by eligible voters in the local government area and he governs in collaboration with the legislative arm of the local government.

Local council members are elected from single member wards (i.e. districts). The term of both the chairman and councilors of local government is currently three years but it varies from state to state depending on what has been legislated by the state house of assembly.

Local governments are empowered to provide street roads, street-lights, good water, primary health-care centers, primary schools, sanitation and other basic amenities and responsibilities as directed by the constitution. The local government system was entrenched in the 1979 constitution via part II, section 7 sub-section (1) ………5 but however, the origin of local government administration in Nigeria was empowered through the 1976 local government reform which was when president Olusegun Obasanjo was the then military head of state which terminated in 1976. This is to say that the 1976 and 1999 constitution of Nigeria recognized the local government as the third tier of government while its functions and roles are written in black and white.

In the current dispensation of the 7th republic, the president; Dr Goodluck Ebele Jonathan has not been pleased with the way and manner in which the local government were administered and consequently the alleged financial recklessness among local government chairmen. This gave rise to a 28-man technical committee to determine the tenor and texture of local government reform. This committee has been inaugurated by the president and its terms of references include:

1. To review the performance of local councils within the last four years and consider the desirability of retaining them as the third tier of government.         

2. To examine the problems of inefficiency and high cost of government with a view to reducing costs and wastages in the three tiers of government.

3. To examine the high cost of electioneering campaign in the country and also consider among other option, the desirability of whether political parties rather than individuals’ office seekers should canvass for votes in elections.  

4. To consider any other matter which in the opinion of the technical committee are germane to the goal of efficient structure of government in Nigeria?

Within the period under review, president Goodluck Jonathan has not really believed so much in the integrity, transparency and accountability of the local government administration in Nigeria especially during his regime as the 7th republican president form may 29, 2011 till date. The president has in so many cases alleged mis-management by the third tier of government which most often gave rise to zero allocation. This implies that the intently generated revenue (IGR) of the third tier of government has been grossly inadequate to enable the council perform its statutory role efficiently.  

Historical Development of Isi-Uzo Local Government Area 

Isi-Uzo is a local government area of Enugu state. Thsse name Enugu state was introduced on August 27, 1991 with the creation of Anambra state with its capital in Enugu. Enugu state shares boundaries with Anambra on the west, Abia state on the south, Kogi on the north while Benue and Ebonyi states are on the east. Enugu city and Nsukka are its major towns. Enugu was the headquarters of the former east central state and eastern Nigeria. The state is made up of 17 local government councils including Isi-Uzo Awgu, Ezeagu, Nsukka, Udi, Oji-river, Aninri among others. Isi-Uzo has its headquarters in the town of Ikem. It has an area of 877Km2 and a population of 148,415 people at the 2006 census. The postal code of the area is 412. Eha-Amufu is a larger town in Enugu state of Nigeria which is located in Isi-Uzo local government area. Isi-Uzo is also an agrarian local government area situated in the undulating lowlands of north east flank of Enugu state. Admittedly, the federal government through the Anambra – Imo river basin authority recently completed a surface water scheme at Ikem, the headquarters of Isi-Uzo local government area which included the extraction of raw water from Ebenyi stream and treatment plant installation. Just recently, the community development association of Ikem during the official handover of the completed phases of the Ikem water scheme to the community and Enugu state rural water supply and sanitation agency (RUWASSA), requested the state agency to undertake the completion of the scheme which now included reticulation of the treated water to the communities. Other communities/villages in Isi-Uzo local government includes: Mbu-Akpoti, Neke, Mbu-Agudene Mbu-Ammon, Ehamufu, etc.

According to the chairman of Isi-Uzo local government, Hon. Augustine Nnamani, his administration has set up a committee that would manage the Ikem water treatment plant. But he pleaded that the federal government should complete the project by awarding the expansion contract. He also pleaded that the federal and state governments should replicate the treatment plant in other communities of Isi-Uzo so that the pressure would not be much on the Ikem plant anytime it comes on stream. The Isi-Uzo local government chairman affirms that his people have serious water problem especially Mbu-Akpoti that is in dire need of portable drinking water. He also stated other problems of roads, education, health among other facilities lacking in the area.

1.2 STATEMENT OF PROBLEM 

Despite the role and importance of revenue to government and any other structural organization, it appears as the life of any governmental administration in Nigeria. The same formal and constitutional sources of revenue are accorded to each local government in Nigeria which is subject to contain variations in their respective areas of jurisdiction. However, the local government through the constitution has been mandated to explore certain areas (within its jurisdiction) economically to aid the arrangement of the federal allocation.

The research problem therefore is to highlight and ascertain the positive as well as the negative roles that local governments play in national development especially Isi-Uzo local government. In addition, financial irregularities and other economic crimes are said to be some of the setbacks of local government administration in Nigerian development.

1.3 OBJECTIVES OF THE STUDY 

The objective/purpose of this study is to reasonably ascertain the following:

i. To evaluate the roles (positive and negative) of local government in national development.            

ii. To highlight some of the setbacks that hinders local government from development.

iii. To evaluate the revenue and expenditure patterns of local government as it leads to development.

iv. To determine how effective the financial control of the local government is and to know the state of its internal control measures.

v. To recommend what can be done to increase the positive roles of local government in national development.

In the course of my carrying out this research, the following research questions were formulated:

i. Do you think that local government has played a significant role towards national development?

ii. Are there implications of revenue to the administration of local government?

iii. Does the constitutional provision create any problem in the application of revenue sharing formular to local government administration?

1.5 SIGNIFICANCE OF THE STUDY 

The significance/benefits of this study is numerous and very important both to government, corporate bodies and individuals and it is hoped that this study will be useful in the following areas:

i. This study will reveal the importance of local government as the third tier system of government. 

ii. It will show the variable in revenue and expenditure pattern and the possible areas of expanding the scope and operation of local government.

iii. This study will also explore other economic and viable avenues of internally generated revenue so as to rely less on federal allocations.

iv. The study will highlight the importance of budget and the benefit associated with adherence to financial strategy of the local government operation effectively.

v. Students of higher institutions especially management agencies will find this study as an additional data bank and reference materials.

1.6 SCOPE AND LIMITATIONS 

This project intends to critically analyze the roles of local government in national development (a case study of Isi-Uzo local government area). In pursuance of this venture, some selected local governments were visited within the Enugu metropolis below were some of the constraints encountered:

1. Respondents Attitude: It was very few respondents that gave me audience in this regard. Most of the staffs I approached were not too co-operative in giving their views as required by the structural questionnaire.

2. Time: The time allocated to the project was inadequate and also, many institutions were on strike and the possibility of using their libraries was not available.   

3. Finance: There is no doubt that finance was a major constraint in the execution of this project. Presently, the hike of petroleum products gave rise to the increase of transportation fares ad also the photocopying of relevant materials.

1.7 DEFINITION OF TERMS

Below are some of the itemized definition of terms which will aid the user to apprehend some terminologies without ambiguity or being biased in line with the control of this research topic.

ii. National Development: The gradual growth of a nation/country so that it becomes more advanced and stronger.

iii. Administration: The process or the act of organizing the way that a job or an activity is been done.

iv. Electioneering: This is simply the act of  to be elected into pubic office.

V. Statutory Allocation: Statutory allocations are allocations that are legally supported by legislation. e.g. grants.

VI. Expenditure:  This is the action of spending funds as well as the amount of money spent.

Viii Committee: This refers to a group of people appointed for a specific function by a larger group.

Federal Republic of Nigeria (1999). Constitution of the 

Federal Republic of Nigeria.

Spending of State and local government, Lagos vanguard newspapers Ltd