A Critical Examination of Local Government Accounting Systems in Nigeria (Case Study of Aguata Local Government)
Chapter One
Objective of the Study
The broad objective of this study is to examine Local government accounting systems in Nigeria (case study of Aguata Local Government). Specifically, the study seeks:
- To examine if accounting system of Aguata local government does allow for the preparation of financial statements that reflect the true financial position of local government.
- To determine the challenges and inadequacies associated to Local government accounting system.
- To investigate the mechanisms that can promote effective accounting system in Aguat Local Government.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Local government
Local government is that part of the government of a nation that deals with matters at the grassroots, administered by local representatives. It is the government at the bottom of a government institution pyramid with National/Central/Federal government at the top, this is the chief custodian of administration and supreme formulator of the broad national public policy. This is followed by the intermediate government called State/Region/Province, responsible for providing effective coordinating link between the central and local government, while the structure at the bottom is the third tier system called the local government, created by the central and state enactment. Nigeria is a sovereign, democratic, secular and federal republic. Federalism implies operation of three different political systems organized in hierarchical arrangement of central, state and local government (Mbieli, 2018). Local government is the lowest in the government hierarchy within the concept of federalism. Federal is the sovereign nations, state a quasi-sovereign, local government the intra-sovereign (Khalil & Salihu, 2011). In Nigeria, after 1976 local government reforms, local government was acknowledged as third tier of government as enshrined in 1979, 1989, 1999, and 2011 (amended) constitution of Federal Republic of Nigeria. Section 7(1) of Nigeria 1999 constitution stipulated and guarantee the system of democratically elected local government councils while section 8 provides for the establishment, structure, composition and finance in each state under the laws. Also, functions of local government are highlighted in the fourth schedule of the 1999 constitution. In Nigeria, there are 774 local government as enlisted in the fourth schedule of the 1999 constitution, although there are various Local Council Development Area (LCDA) established in some states according to individual state law. In Lagos state, there are 20 local government and 37 local council development area. Local government as an institution at the grassroots, entrenched democracy and achieve a broader concepts of peoples’ social and economic welfare for the provision of public goods and services. According to Sikander (2015), local government institution allowed effective participation and involvement of citizens at the grassroots in decision making, political affair and democratic process. It does not involve in decision making in areas such as taxation,international trade, national defence, financial institution and foreign policies.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine a critical examination of local Government accounting Systems in Nigeria. Aguata Local government form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain examine a critical examination of local Government accounting Systems in Nigeria, Aguata Local government . In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the local Government accounting Systems in Nigeria, Aguata Local government .
Summary
This study was on examine a critical examination of local Government accounting Systems in Nigeria, Aguata Local government. Three objectives were raised which included: To examine if accounting system of Aguata local government does allow for the preparation of financial statements that reflect the true financial position of local government, to determine the challenges and inadequacies associated to Local government accounting system and to investigate the mechanisms that can promote effective accounting system in Aguat Local Government. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from CBN. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Finance is very important in the running of organizations or governments. Local governments have a number of functions to carry out. Consequently, their finances need to be efficiently managed and judiciously utilized. Financial management is about efficiency matters. It is about affective use of available financial resources, it is about financial alertness. Efficient financial management is necessary for successful execution of projects and delivery of quality services at the local level. Efficiency in financial management in any organization is always achieved through organizational determination to pursue excellent performance. It entails self-discipline on the part of top, middle, and low level managers in the organization. In this paper we have defined the concept local government, the meaning and approaches and tool and techniques of financial management. However, the efforts of local governments’ executives to attain some financial autonomy in running their councils are being discountenance by the intervention of state governments in local affairs. It is a common practice for state governments to appropriate a substantial portion of finance meant for local government. More often than not such behaviours are transforming into a fierce struggle for supremacy between the local and state governments. It is obvious that such scenarios have tended to result in the state governments depriving affected local governments of the requisite funds which are truly theirs for effective management of their local government areas
Recommendation
Search for honest and credible leadership. Without honest and transparent leaders being put in place at the local government level, embezzlement of public fund is likely to continue to thrive unabated.
- The financial autonomy of local government must be guaranteed by the provisions of the constitution.
- Joint state-local government accounts must be abrogated immediately in line with the present thinking of the members of the House of Representatives, the Senate should, as matter of priority, consider and pass the bill to enable the President give assent to it.
- Local governments must be given all the political powers to enable them formulate and implement programmes of socioeconomic and political development as desired by the local populace whom they owe their service to.
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