IMPACT OF POOR PROFITS ON THE DEVELOPMENT OF LOCAL GOVERNMENT AREAS (A CASE STUDY OF UMUAHIA NORTH LOCAL GOVERNMENT)
TABLE OF CONTENT
COVER PAGE
APPROVAL PAGE i
DEDICATION ii
ACKNOWLEDGMENT iii
TABLE OF CONTENT iv
ABSTRACT vii
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEM 2
1.3 PURPOSE/OBJECTIVE OF THE STUDY 3
1.4 RESEARCH QUESTIONS 4
1.5 SIGNIFICANCE OF THE STUDY 4
1.6 SCOPE AND DELIMITATION 5
1.7 LIMITATION OF THE STUDY 5
1.8 DEFINITION OF TERMS 6
CHAPTER TWO
LITERATURE REVIEW
2.0 DEVELOPMENT OF LOCAL GOVERNMENT
IN NIGERIA 11
2.1 SOURCES OF REVIEW IN LOCAL GOVERNMENT 15
2.2 THE NEED FOR PROFITS IN THE DEVELOPMENT OF LOCAL GOVERNMENT AREAS. 21
2.3 THE PROBLEMS OF PROFITS 24
2.4 THE IMPLICATION OF PROFITS ON THE DEVELOPMENT OF LOCAL GOVERNMENT AREAS 27
2.5 TAX AS A MAJOR SOURCE OF PROFITS 35
2.6 THE PURPOSE OF TAX 37
2.7 PROBLEMS ASSOCIATED WITH TAX COLLECTION IN UMUAHIA NORTH LOCAL GOVERNMENT AREA 39
CHAPTER THREE
3.0 RESEARCH METHODOLOGY 45
3.1 RESEARCH DESIGN 45
3.2 AREA OF STUDY 46
3.3 POPULATION OF THE STUDY 46
3.4 SAMPLE SIZE AND SAMPLING TECHNIQUES 46
3.5 INSTRUMENT FOR DATA COLLECTION 48
3.6 SOURCES OF DATA COLLECTION 49
3.7 VALIDATION OF INSTRUMENT 49
3.8 METHOD OF DATA ANALYSIS 50
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS 55
CHAPTER FIVE:
5.1 SUMMARY OF FINDINGS 73
5.2 RECOMMENDATION 74
5.3 CONCLUSION 76
BIBLIOGRAPHY 77
APPENDIX 80
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
Development is a sine qua non for modern civilization. In a crusade and struggle to carryout development at all nooks and crannies of the society, the local government as the tier of government that is nearest to the people is saddled with the responsibility of direct development of the people to a certain level.
Development is highly associated with fund, much profits is needed to plan, execute and maintain infrastructures and facilities at the local government level. The needed profits generated for such developmental projects. Like construction of accessible roads, building of public schools, health care centers, construction of bridges among others are soles generated from taxes, royalties, haulages, fines and grants from states, national and international governments.
Thus, the Local government cannot embark, execute and possibly carryout the maintenance of these projects and other responsibilities without adequate profits .
This is the basic reason why development is skeletal at some Local Government councils in Nigeria. The issue of poor profits is not exceptional to local government in Abia State. This has been one of the problems encountered by Umuahia North Local Government.
This however pronouncedly affected development negatively in local government councils. In this research project, the issue to address is how far can this poor profits affect development especially in Umuahia North Local Government.
1.2 STATEMENT OF THE PROBLEM
The Local Government Council take direct care of the grassroots people, that is the people in the rural areas. This group of people sometimes lack essential facilities and condition of modern civilization. They lack pipe bore water to drink, do not have electricity, accessible roads, poor educational infrastructure and facilities to mention but a few.
This is one of the major reasons of rural – urban migration of movement. This has made our cities to be congested and increase in many criminal activities. Based on the above and foregoing assertions, it is obivious that impact of poor profits on the development of the rural area is a serious problem. This might be as a result of poor profits . If Nigeria is to achieve her desired goal of vision 2020 and possibly meet the millennium development goals (MDGS) target, the issue of profits must be addressed squarely.
Hence the researcher is bothered to find out impact of poor profits on the lives of people at the rural area and how it has affected development in general especially in Umuahia North Local Government Area.
1.3 PURPOSE/OBJECTIVE OF THE STUDY
The broad objective of the research is to evaluate impact created by poor profits on the development of Umuahia North in Abia State.
The other objective of this study includes:
- To determine the level of modern social amenities available in Umuahia North.
- To find out the level of poverty associated with the rural people as a result of poor development
- To find out the degree of rural-urban migration.
- To make useful suggestions to solve the problem of poor profits as development depends on profits generated.
1.4 RESEARCH QUESTIONS
- What are the impacts of poor profits on the development of Umuahia North?
- Are there adequate modern social amenities in Umuahia North?
- Is the poverty level of the rural people high has a result of poor development?
- Has poor profits in Umuahia North contributed to rural-urban migration?
- How can profits in Umuahia North be improved?
1.5 SIGNIFICANCE OF THE STUDY
The significance of any human endeavour is measured by its relevance to solving human problems. The findings of this study would help Umuahia North Local Government to identify the problems associated with profits and its consequences on development.
1.6 SCOPE AND DELIMITATION
The study is focused on impact of poor profits and how it affects development of the local government areas. It will also involve the analysis of problems associated wit profits and its impact on the development of Umuahia North Local Government.
1.7 LIMITATION OF THE STUDY
The researcher was constraint by time as time frame for the submission of this research was short for an expansive research.
The researcher equally encountered financial limitation as lack of sponsorship from corporate bodies thus; the researcher’s little resources could not cover more areas.
The willingness of most local government staff to supply the needed data was another major problem.
1.8 DEFINITION OF TERMS
Some concepts require proper explanation to enhance our understanding of the theme where necessary opinion of scholars will be cited to explain the terms. The researcher will also give some fundamental definition of terms.
LOCAL GOVERNMENT
According to Lawal (2000) Local Government as a political sub-division of a nation in Federal system which is constituted by law and has substantial control of local affairs which includes the power to impose taxes or exact labor for prescribed purpose.
According to William Robson (2006) Defined Local Government as involving the conception of territorial, non-sovereign community possessing the legal right and the necessary organization to regulate its own affairs.
PROFITS
Public profits could be defined as the funds generated by the government to finance its activities. In other words profits is the total fund generated by government (Federal, state, local government/ to meet their expenditure for a fiscal year.
This refers also to the grand total of money of income received from the source of which expenses are incurred. Profits could be internal or external profits. This is the process of sourcing profits for the local government in carryout their aim and objectives.
EXPENDITURE
Public expenditure refers to the expenses which the government incurs for its own maintenance, in the interest of the society and the economy in order to help other countries.
Tax
Tax can be defined as a compulsory levy by government on goods, services, income and wealth. It provides definite source of profits for government expenditure. (Udeh O.S. 2008)
It is the way by which government obtain extra money. It spent from income of individual and companies. Tax could be direct or indirect tax. A tax is a payment made by the taxpayers and used by the government for the benefits of all the citizens.
TAX EVASION
Tax evasion means illegal reduction in one’s tax liabilities, thereby paying less than the appropriate amounts and not paying at all.
TAX AVOIDANCE
Tax avoidance is the act of streamlining one’s financial affairs within the law so as to minimize the tax liabilities.
DEVELOPMENT
According to Ake (2001) Development is thus the process by which people create and recreate themselves and their life circumstances to realize higher levels of civilization in accordance with their own choice and values.
It also a type of social change in which new ideas are introduces into a social in order to produce higher per-capital income and levels of living through more modern production methods and improved social organization.
REFERENCES
Abba, E U. (2008). Local Government Administration in Nigeria. Onitsha: Abbot Books Ltd.
Okoli, F.C. (2000). Theory and Practice of Local Government. Enugu: Intec Printers Ltd.
Udeh, O.S. (2008). Public Financial Management. Enugu: Malik Enterprises Nigeria.
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IMPACT OF POOR PROFITS ON THE DEVELOPMENT OF LOCAL GOVERNMENT AREAS (A CASE STUDY OF UMUAHIA NORTH LOCAL GOVERNMENT)
