THE EFFECT OF FINANCIAL DISCIPLINE ON GOOD GOVERNANCE AT THE LOCAL GOVERNMENT LEVEL IN KOGI STATE

THE EFFECT OF FINANCIAL DISCIPLINE ON GOOD GOVERNANCE AT THE LOCAL GOVERNMENT LEVEL IN KOGI STATE

(A CASE STUDY OF OKENE LOCAL GOVERNMENT AREA OF KOGI STATE)

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

The effect of financial discipline and good governance at the local government level in Kogi State a case study of Okene local government mainly emanates from the issue of irregular remittances of federal and state government funds and the collection of internally generated revenue within the local government and some other social amenities which would have generated some finance for the local government were not properly provided.

The National Guidelines for the reform of local government (1976) provides that one of the aims of creating local government in any organized society is delivery of goods and services close to where people live to many people, including scholars. This objective constitute for most important indicator of success or failure of any local government.

The federal government has been so enthusiastic about local government since (1987) because of the federal government commitment to the development at the grass root level, various agencies were established to assist local government in promoting the such needed development. Such agencies include Directorate of Food Road and Rural Infrastructure (DFRRI), River Basin Authorities etc.

Despite the existence of these agencies, local government in Nigeria and indeed the third world countries have lived below expectation owing to the issue of much talked about financial misappropriation which has slowed down development at the grassroot. The delivery of goods and services which is very crucial to the maintenance of people’s confidence in their local government require proper financial discipline and accountability.

1.2  STATEMENT OF THE PROBLEM

This deals with the problems of financial discipline, human and material resources in local government. This problem has become common to all local government in recent years in Nigeria.

The ultimate question which the project set to answer is based on the following premise what is financial discipline? What is its effect on good governance at the local government level?.

The financial position of Okene local government council could be more viable and would have made tremendous impact but for the following reasons, it could not be achieved:

1. There are inadequate reference materials for the staff of revenue collectors
2. Insufficient mechanisms to solve the problem of financial discipline in local government

1.3  OBJECTIVES OF THE STUDY

The objectives of this study include the following:

1. To identify the financial discipline method in the local government particularly the case study.
2. To determine the impact of financial discipline on effective local government administration.
3. To examine the ineffectiveness of financial discipline in the local government
4. To highlight the impediments to financial discipline as a way to good governance in Okene local government and proffer solution to these impediments.

1.4  RESEARCH QUESTIONS

The following are the questions that will guide this research;

1. What determines financial discipline in the local government?
2. What is the income level of the revenue in the management of Okene local government council?
3. What is the income level of the revenue in the management of Okene local government council?
4. How would you describe your knowledge of effective financial discipline on good governance of Okene local government council?
5. What is the criteria for the measurement of job performance in the local government?

1.5  SIGNIFICANCE OF THE STUDY

The study is not an academic exercise alone, but of great relevance to Okene local government and other local governments in Nigeria. There is no doubt that at present, the choice of most citizens is on political and psychological belief. It is the hope of the researcher that after writing this project work, the local people and citizens of other local governments would be in better position to know their rights and meet up their needs from the local council.

There is no doubt that the council plays a very important role in the development of the local government areas in the country both economically, socially and politically. The local areas will also benefit a lot since they own their resources and their demands from the local council and the parliament.

Finally, it will be of great help to students of pubic administration as well as the department of management sciences and other individuals who ay be interested in carrying out future research on the topic.

1.6  SCOPE OF THE STUDY

The scope of the study is to view the efforts, impact as a problem to effective local government and project funding in local government administration particularly in Okene local government area.

1.7  LIMITATIONS OF THE STUDY

The research work is limited by sufficient statistical data from the local government (Okene) to authenticate the problem of financial discipline the effective project funding and its attendance course.

Secondly, this study is however constrained by a number of factors such as lack of adequate time and the inability of people under study to give true information on the subject under study.

1.8  DEFINITION OF KEY TERMS

FINANCIAL CONTROL: This is a control measure put in place in order to ensure that financial resources are obtained economically and used effectively and efficiently in the accomplishment of desired goals.

REVENUE: This refers to the fund needed and generated by the government to finance its activities. Better still, revenue is any form of cost and items that are either charged or credited to the income and expenditure account for an accounting period.

STATUTORY ALLOCATION: These are allocations which are mandatory for the federal government to release (about 20% of the federal account) to the local governments.

GRANT: These are revenue given to the local government annually by the state and federal governments in order to let the local governments discharge their responsibilities effectively and handle issues relating to emergencies such as natural disasters.

SUBSIDIARY FUNCTIONS: These are functions that may be conferred on the local governments by the state house of assembly.

INTERNAL CONTROL: Is the system of control established by the management of local government to safeguard the local government assets and ensures the judicious use of fund

FINANCIAL PLANNING: This refers to long, medium and short term planning of local government finance and carrying out desired state of affairs.

BYE-LAWS: This refers to laws passed under the authority of a higher law specifying what things may be regulated. They are also internal rules made within the local government in order to carry out legislative functions at the local areas.

POLITICAL SUBDIVISION: This terms is used to describe any public body that is not state or federal government

FINANCIAL DISCIPLINE: This simply refers to the act of being prudent in spending public fund to promote accountability and reduce waste.