CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Since the 1950s,when the federal system came into operation in Nigeria, local government administration has received considerable scholarly attention (Adamouuun 1979; Gboyega 1987; Ekpo and Ndebbo 1998; Oyedirean 2001; BAMIDELE 2013). Gboyega, cited in Adeola (2008), observed four major epochs in the development of the Local Government system in Nigeria: (i) Colonial rule, which was based on the traditional administrative system and existed from 1903 until the 1950s when the native authority system became (ii) the more liberal and participatory approaches local governance introduced in 1950s (iii) the advent of military rule, which replaced the model of grassroots participatory democracy with military centralization and a unity of command scheme; and (iv) the comprehensive reform of local government administration in 1976, which restored liberal participatory values.
       The impact of these last two epochs on the structure and operational dynamics of local government in Nigeria is still fact. Local administration or governments are created with the ultimate goal of bringing government closer to the people eat the grassroots. In Nigeria, the local government reforms aimed both to accelerate development and hold those in power accountable for their governance roles. In 1976, local government administration was transformed and a uniformed system in terms of structure objectives and operations was established across the country and it formed the basic for the present local government mode of operation, administration, finance and structure as it is applicable today. F.M. Marx (1965) cited by Obiluze stated that “Administration consists in the systematized ordering of affairs and calculated use of resources aimed at making those things happen which we want to happen and simultaneously preventing development that fails to sequel with our intentions local administration in 1976 in Nigeria was re-energized to greater efficiency in management and science delivery. Most especially to the local areas. This reform was so inclusive that offered the local government and constructional role to join the central government a constitutional role to join the control government in development, science delivery and grassroots participatory democracy.
1.2 Statement of Problem
There have been arguments as to the need or otherwise of local government in Nigeria this is because of the dysfunctional state of the local administration which is supposed to bring development to the people at the grassroots in actual term local government serves two fold purposes. The first is the administrative purpose of supplying goods and services while the other is to represent and involve citizens indeterring specific local public needs and how these local needs can be met. Apart from the fact that many scholars have justified the existence of local government on several grounds. The performance of local governments across the country has been very questionable. This perceived poor performance has generally been attributed to corruption. Lack of good leadership, lack of autonomy, inadequate finance and many more.Inorder to have a clear picture on the challenges facing local government or administration, some of the major problems encountered in living up to their expectation according to statutory provision include are following:
Lack of finance: The local government in Nigeria have been main sources of revenue namely internal revenue, statutory allocation and government grants and loans. Internally generated revenue is made of property rates, market and motor park fees, liquor license fees, bicycle, canoes and wheel-barrow license fees and so on. The second source is the constitutional mandatory statutory 25% allocation from the federal account and statutory share of 25% of the states total internal revenue fund. It has been observed that local government have not been able to adequately generate revenue to meet their various responsibilities.
Corruption: Corruption and embezzlement of public funds is also a common feature of local government in Nigeria. There is a high incidence of corruption, fraud and embezzlement in local government especially in the revenue section. Some revenue collectors give false receipts to their clients and as a result do not remit the proceeds. Besides, the chairman divert money meant for projects to their personal accounts. In fact, local government haveturned a breeding ground for corrupt practices as most of the contracts are not awarded through dues process.
