*CHAPTER ONE*
*1.0 INTRODUCTION*
*1.1 THE BACKGROUND OF STUDY*
What is today known as local government in Nigeria has been metamorphosed
from the pre-colonial traditional system of government which was largely
localized according to the peculiarities of the areas.
The local council or native authority presented the basic unit through which any
king administers her people at the grass root level. The theory of local
government therefore is that there must be an administrative agency through
which the central government governs the people in their respective homes.
The local units usually operated under a council, which may consist of persons
elected through democratic process by the local inhabitants or through persons
appointed by the government to run the affairs of the local inhabitants. Starting
from early 1950s’ there have been series of re-examination of the institution of
local government in Nigeria. There have been a large number of reform decrees,
legislative and judicial activities and fully implemented recommendations.
Meanwhile, the most remarkable of all these is the 1976 local government
reforms made the Nigerian local government, the government of the
government at the grass root that is nearest to the local populace.
The implication of its constitutionally guaranteed governance structure and its
closeness to the people necessitate the need for accountability and transparency
in financial management and their norms in governance, more evident at this
level.
But certainly, local government in Nigeria is often seen as nurturing grounds for
bare-faced corruption and non-existence of accountability and transparency in
control. The lack of integrity, accountability and transparency at the level of
government definitely constitutes a heavy toll on the well-being of the people.
(Agho 2012), stealing, embezzling...
Local government councils in Nigeria have long been plagued by serious issues
related to accountability and transparency, which have negatively affected their
financial management and service delivery. One of the major concerns is the
circumvention of both financial and non-financial procedures, leading to
unended irregularities within the system.
Many local government employees have not experienced any direct benefit
from efforts aimed at improving accountability. Additionally, there has been
little to no positive change in the behavioral attitude of council staff toward
accountability, whether in their fiduciary or official conduct. This undermines
ethical governance and promotes impunity.
A particularly troubling issue is the persistent payment of salaries and
allowances to ghost workers. These payments are often processed and approved
without due diligence, showing a clear lack of transparency and internal control.
Account officers, who are supposed to serve as financial gatekeepers, frequently
fail to fulfill their responsibilities and participate in these acts without facing
consequences.
Furthermore, overhead expenditures are incurred without paper documentation
or justification. In many cases, records that do exist favor the council chairmen
or other top officials and are deliberately destroyed to avoid scrutiny or
prosecution after their tenure. This practice erodes the integrity of financial
processes.
Procurement processes are also widely abused. Instead of following due tender
procedures, contract and supply opportunities are awarded based on favoritism,
with friends and family members receiving contracts without competitive
bidding. This not only violates procurement laws but also limits the quality,
cost-effectiveness of service delivered to the public.
Moreover, contract awards are often driven by political loyalty or personal
connections. Individuals who financially supported the election campaigns of
council chairmen are frequently rewarded with contracts, which they may
abandon or execute poorly—knowing they are unlikely to face any disciplinary
action. This practice not only compromises the development objectives of local
government but also reinforces a cycle of corruption and inefficiency.
These problems collectively demonstrate the urgent need to examine how
accountability and transparency, when properly implemented, can strengthen
the financial management of local government in Nigeria.
*1.3 OBJECTIVE OF THE STUDY*
The following objectives of this research work stand to be achieved:
i) To ascertain whether accountability and transparency has put to check the
circumvention of activities of local government council in Nigeria.
ii) To ascertain whether the inhabitants of local government council have
benefited from the process of accountability and transparency through the
improvement of social amenities.
iii) To examine whether accountability and transparency have influenced the
official and unofficial financial behaviour and attitudes of council staff in
Nigeria.
iv) To assess the role of accounting officers in promoting financial
accountability and transparency in the management of local government funds.
v) To evaluate how political interference and favoritism affect procurement
processes and contract awards within local government councils.
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*1.4 RESEARCH QUESTIONS*
The following research questions are designed to attend the objective of this
work:
i) To what extent have accountability and transparency reduced the
circumvention of financial and administrative activities in local government
councils?
ii) Have the residents of local government areas benefited from accountability
and transparency, thus in improved social amenities?
iii) How have accountability and transparency influenced the financial
behaviour and attitudes of council staff in their official and unofficial
capacities?
iv) What role do accounting officers play in promoting accountability and
transparency in the financial management of local government?
v) How does political interference and favoritism affect procurement processes
and the awarding of contracts in local government councils?
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*1.5 STATEMENT OF HYPOTHESES*
The research work is based on the following hypotheses which are formulated
in tackling the problem in the subject:
*Ho1*: Accountability and transparency have no significant effect on curbing
the circumvention of financial and administrative activities in local government
areas.
*Hi1*: Accountability and transparency have a significant effect on curbing the
circumvention of financial and administrative activities in the local government
councils.
*Ho2*: Accountability and transparency have not significantly improved social
amenities for residents of local government areas.
*Hi2*: Accountability and transparency have significantly improved social
amenities for residents of local government areas.
*Ho3*: Accountability and transparency do not significantly influence...
Ho₃: Accountability and transparency do not significantly influence the
financial behaviour and attitudes of council staff.
Hi₃: Accountability and transparency significantly influence the financial
behaviour and attitudes of council staff.
*1.6 SIGNIFICANCE OF THE STUDY*
This study is significant because it addresses the critical role of accountability
and transparency in enhancing financial management within Nigeria’s local
government councils. By identifying how poor accountability affects the
effective use of public funds, this research offers practical insights for
improving local governance.
The findings will benefit government officials and policymakers by guiding
reforms aimed at reducing financial misconduct and promoting efficiency.
Local government administrators will also gain a better understanding of how
transparent practices can improve service delivery and public trust.
For researchers and students, this study adds to the body of knowledge in public
sector financial management and local governance. It will serve as a useful
reference for future studies, academic work, and research in related fields.
In addition, civil society organisations and anti-corruption agencies can use the
outcomes of this research to develop targeted strategies that encourage
transparency and responsible leadership at the grassroots level.
*1.7 SCOPE OF THE STUDY*
This study focuses on examining the effect of accountability and transparency
on the financial management of local government councils, using Aboh Mbaise
Local Government Area in Imo State as a case study. It covers key areas such as
revenue generation, expenditure control, procurement procedures and the
financial behaviour of council staff.
The research will be limited to the administrative activities and the financial
practices within Aboh Mbaise local government area. Data will be collected
through questionnaires, interviews, and internal practices within the council,
and a review of relevant records from selected departments within the council.
This study considers the role of accounting officers, political office holders and
other staff in ensuring or hindering accountability and transparency. It does not
extend to state or federal government operations but concentrates solely on the
financial structure and governance of the local government council. The time
frame of this research includes recent years to reflect current practices and
challenges in local government financial management.
*1.8 LIMITATION OF THE STUDY*
In this research work, there are many constraints that affect the output of this
work. One of the limitations is time frame given to this work by the school for
the writing and submission of this project work as well as academic and
personal pressure was faced.
Also, it was not easy collecting information from the council area. Officers I
met did not allow me access to some of their documents for security purposes.
Furthermore, most of the personnel in Aboh Mbaise council area are not
qualified accountants and this imposed some problems in data collection. Exact
is one of the major problems in the study, getting it from the management or
people in authority is not easy. Financial limitation is another, imposing a big
constraint in conducting the research work effectively, particularly in
administering the questionnaires and lack of…
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*1.9 DEFINITION OF TERMS:*
- *Local government*: This is defined as the third tier of government in
Nigeria. It is the government at the lower level that has power to control our
local affairs as well as the staff by carrying out its functions.
- *Revenue*: This is defined as the income the government generates from
sources like taxes, levies, fines, and government allocations, used to fund public
services and development.
- *Allocation*: This is defined as the distribution of funds or resources from a
higher level of government like federal or state to local government to support
their operations and development projects.
- *Management*: Is the process of planning, organizing, directing, and
controlling resources to achieve specific goals efficiently and effectively.
- *Council*: A council is an administrative body established within a defined
area to carry out government functions such as policy-making and service
delivery.
- *Accountability*: This is defined as the obligation of individuals or
organizations, especially public officials, to explain, justify, and take
responsibility for their actions and use of public resources.
- *Transparency*: This is defined as the practice of making information,
decisions, and processes open, clear, and accessible to the public to promote
trust and prevent corruption.
