EVALUATION OF CHALLENGES OF FINANCIAL MANAGEMENT IN NIGERIA LOCAL GOVERNMENT SYSTEM
The third tier level of government in Nigeria is tier called “Local Government” it was established with the aim and the specific function to assist the higher s of government thus, the federal and state to bring effective rural development and good governance at the grassroots level. Both fiscal and physical evaluation of the performance and effectiveness of the third tier level of government carried out revealed that this tier of government has performed below expectation. This research work which is challenged of financial management in Nigeria local Government system: A case of Ivo local Government council of Ebonyi State was undertaken to anticipate and comprehensively entrench or discuss those inhibitive factors to proper financial management in Nigeria local Government system. It recommended that local Government council should adapt and put in place efficient financial management to maximize the utilization of the available scarce financial resources. This is necessary for good and fascinating infrastructural development and provision of social amenities which will in are way or the other promotes the living standard of the grassroots level.
1.3 BACKGROUND OF THE STUDY
According to aborisade, (2003) in his write up defined or state that financial management in any local government involves the inflows of payment, it can also be said to be the art of raising and spending money which is ever prominent facts to any local government.
Financial management in any local government system is like a vehicle as whole with many parts, that when one part of it most especially the engine part is not properly perfectly maintained and guild not strictly adhered to can cause damage to the vehicle thereby and therefore affectively the various other part and will prevent the vehicle from functioning, in relate to our topic which will prevent the local government even organization from performing it’s function. Part of the responsibilities of local government is to ensure efficient service delivery to the people, and for any organization to deliver it’s function efficiently, huge amount of money is needed and efficiently financial management must be adopted.
This therefore, follows Orewa, G.O (1991) whom states that finance must be handled with care and disturbed according financial regulation. The ideal is to analyze the efforts, made by the council to regenerate funds internally to supplement those from the state and federal source and finally make recommendation on some possible course of action that will enhance improving the situation. It is said that resources are limited want are uncountable. The same thing can be said of any government, be it rid federal is appreciated that the place of financial accountabilities can be recognized fully in attaining other objective of local government.
Again, the issue of participatory democracy can not be consolidated fully in financial management is not well studied. The masses are represented by representatives since it is not possible for all to be in government. The only way the masses participate in government is any time their representatives are called to give account of their stewardship. The highest stewardship is financial accountability.
This is necessary because governments are established to bring good welfare to the citizen. So, the stewards are always made to do this to those they are representing i.e. the masses.