PROBLEMS AND PROSPECTS OF LOCAL GOVERNMENT FINANCE/ACCOUNTING IN NIGERIA (A CASE STUDY OF NSUKKA LOCAL GOVERNMENT AREA

ABSTRACT The title of this research work is, problems and prospects of local government finance/accounting in Nigeria” with particular reference to Nsukka Local Government Area, Enugu State.  It has been identified that accounting and financial reporting in the public sector particularly at the local government level was not given adequate attention.
In the course of carrying out this study, the following objectives among others were set which included.  The identification of major causes of maladies in the financial system of the local government; to examine the accounting department, to find out if it is manned by competent and qualified personnel, to examine whether the sources of income to the local government finances, to examine the various problems of the local government finances and accounts and to examine the prospects of improving the available sources of the local government finances. To achieve the set objectives, some hypotheses were formulated which comprised: an increase in local government share of federation account from 20-25% would help local governments in achieving at least 75% of their statutory responsibilities, the employment of low caliber staff has a significant negative relationship with the low efficiency and productivity of local governments, the Accounting system of local government is not effective in operation and that another source of tax revenue is not essential for Nigerian Local Governments. Two broad research methods were adopted in this study which were personal interviews and fully designed and well-structured questionnaires.  For the purposes of analyzing the hypotheses, chi-square (x2) technique was adopted. As a result of conscientious and of course painstaking study done, a lot of findings were made which included inter-alia, there was an ample proof that the greater number of local government’s employees are unqualified.  Other taxes to be collected by the local governments can improve its financial base, the employment of low caliber staff has no significant negative relationship with the low efficiency and productivity of the local government; and increase, from 20 – 25% in the Federal Government Statutory Allocation of federation account would not be enough to detray a reasonable proportion of such responsibilities, embezzlement, receipt of huge kick-backs, contract inflations, large scale salary, fraud, auditing and internal control problems were discovered as some of the major accounting and financial problems of the local governments. As a result, the following recommendations were proffered:  efforts to be intensified in the collection of revenue and continuously seek new avenues for local taxations, emphasis to be placed on the recruitment of qualified, experienced and well-trained personnel for the assessment, collection and general administration of local taxes and rates, design a sound system of budgetary control, installation of a system of internal control, projects to be evaluated and implemented, proper feasibility study to be carried out; and internal funding to be improved by its engagement in commercial ventures.
TABLE OF CONTENTSTitle page
CertificationDedicationAcknowledgementAbstractTable of content
CHAPTER ONE:INTRODUCTION1.1An Overview1.2Statement of problem1.3Hypothesis1.4Objectives of study1.5Significant of study1.6Limitation of study1.7Definition of terms
CHAPTER TWO:LITERATURE REVIEW2.1Government Accounting2.2Local Government Accounting2.3Statutory Base of Local Government Finance in Nigeria2.4Functions of Local Government2.5Sources of Local Government Revenue2.6Objectives of Local Government2.7Local Government Expenditure2.8Management and Control of Local Government Finance2.9Problems of Local Government
CHAPTER THREE:RESEARCH METHODOLOGY3.1Methodology 3.2Sources of Data3.3Population Definition3.4Statistical Determination of Sample Size3.5Methods of Data Presentation3.6Data Analysis3.7Decision Rule3.8Operation Assumption 
CHAPTER FOUR4.0Data Presentation and Analysis4.1Questionnaire Distribution and Response4.2Data Analysis4.3Test of Hypothesis4.4Interpretation of Results
CHAPTER FIVE5.0Research Findings, Recommendations and Conclusion5.1Summary of findings5.2Conclusion5.3RecommendationBibliographyReferences