AN APPRAISAL OF THE CHALLENGES OF FUND MANAGEMENT IN THE NIGERIA LOCAL GOVERNMENT SYSTEM
CHAPTER ONE
1.0 INTRODUCTION
The challenges of funds management in finance function, usually at a managerial level through which the firms financial resources are harnessed and allocated in the Nigeria local government system. The subject of financial management is of immense interest of those in academic and practicing managers because it provides them understanding with conceptual and analysis insights to make decision skillfully.
Due to scarcity to resource financial management is arguable the most, critical and intractable of the problem which constrained the performance and development of local government in Nigeria and which Lokoja local government is not an exception inadequate financial resources has hampered development of Lokoja local government and this has always remained a log on her wheel of development. This coupled with other problems have made immense contributions to the low performance of the local government. Esun (2013).
The aim of this study is to know and evaluate the challenges of fund management in the Nigeria local government system most especially Lokoja government council. Also to minimize the identified problem in order to enhance the standard of living of the local citizens.
1.1 BACKGROUND OF THE STUDY
Local government is the third tier and government that are responsible for administration at the grassroots level. According to Lock (1988), local government is public organization authorized to dividend and administer a limited range of policies within a relative and small territory which is a sub-division of regional or national government.
Therefore, local government has been considered desirable as essential instrument of national and state government for the performance of some certain basic services, like introduction and distribution of goods and services such as areas of health care, education, agricultural extension, social welfare, security and market which can best administered healthy or intimate knowledge of needs condition and peculiarity of the area concerned.
The 1979 constitution guideline formed an important landmark in the evaluation of local government in Nigeria. The reform therefore saw the emergence of uniform structure of local government. The committee considered the accounting and financial management system for the new local government that had emerged. The accounting system consist of financial memorandum not be adopted on a nationwide basis by all the local government in the country. Fund serves as changes in financial resources, arising from change in working capital items and form financial investing activities of enterprise. According to Akinsunsmi (1986). Money receive as payment income especially that of a country from all sources.
