A Critical Analysis Of Revenue And Expenditure Of Local Government Administration In Nigeria (case Study Of Mbanabo North Local Government.

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Title page

Approval page



Table of content


1.1       Background of the study

1.2       Statement of problem

1.3       Purpose of the study

1.4       Hypothesis

1.5       Significance of the study

1.6       Scope and limitation

1.7       Definition of terms


CHAPTER TWO: review of related Literature

2.1       Historical development of local Govt. in Nigeria

2.2    Local government and national development

2.3    Sources of revenue of local councils

2.4    Expenditure pattern of local government

2.5       Budgeting and internal control in L.G operations

2.6       Consolidated revenue fund (CRF)

2.7       Problems of local government 

2.8       Departmental vote revenue and expenditure A//C

2.9       Local government administration (2002 –2004)


CHAPTER THREE: Research design and methodology

3.1       Study area

3.2       Sources of data

3.3       Research instrument

3.4       Population of the study

3.5       Determination of simple size

3.6       Method of data analysis

CHAPTER FOUR: Data presentation and analysis

4.1       Data presentation

4.2       Return of questionnaires

4.3       Data analysis

4.4       Test of hypothesis by using Chi-square (X2)





CHAPTER FIVE :Summary of findings, recommendations and conclusion.

5.1       Summary of findings

5.2       Recommendations

5.3       Conclusions


















The basis objective underlying this study is to analyze critically how the expenditure and revenue pattern of local government administration in Nigeria is carried out. This research work has been structured into five chapters to make for easy comprehension.

          The author will find out why some various Local Government authorities have been under funded which makes them not to live up to their expectation in services.

          The author will present research design and methodology is study area, including sources of data e.g. Primary and Secondary sources. The author will show the research instrument used.

          The author will present and analyze data and show how questionnaire were distributed. From there the author will summarize what has been written and draw conclusion and recommendations.









Local government is the third tier of government in Nigeria. The Local government system was entrenched in the 1979 constitution via part 11, section 7, sub section (1)………5.

However, the origin of local government administration in Nigeria was empowered through the 1976 local government reform. When president Olusegun Obasanjo was the then Military Head of state, which terminated in 1979. this is to say that 1979 and 19989 Federal Republic of Nigeria constitution recognized the local government as the third tier of government and its function and role written in black and white. In the current dispensation of the 5th republic, which is less than 3 months now, the president Chief Olusegun Obasanjo has not been pleased with the way and manner in which the local governments were administered and consequently alleged financial reckless amongst local government chairmen. This gave rise to a 28n men technical committee to determine the tenor and texture of local government reform. This committee has been inaugurated by president Obasanjo and has the ETSU at NUPE, Achaji Umane Ndayoko as its head / chairmen, its terms of reference include the following.

1.           To review the performance of local councils within the last four years and consider the desirability or otherwise of retaining them as the third tier of government. In that regard consider, among other optims the adoption of a modified version of pre 1976 local government systems of Nigeria.

2.           To examine the problems of inefficiency and high cost of government with a view to reducing costs and wastages in the three tiers of governments.

3.           Examine the high cost of electioneering campaign in the country and consider among other options, the desirability of whether political parties, rather than individuals office seekers should canvass for votes in elections.

4.           Consider any other matters, which in the opinion of technical committee  are germane to the goal of efficient structure of governance in Nigeria.


In anticipation of the technical committee to determine the tenor and texture of reform of the councils, the People’s Democratic Party (PDP) cancus suspended indefinitely the June 12, 2003, Local Council election pending the outcome of the 28-man Technical Committee inaugurated in June 2003 to be headed by the ETSU of NUPE. Alahji umaru Ndayoko. This is to say that up till date the 5th republic government has taken off without the democratic elected local government chairman. But rather, an appointed caretaker committee by the state government administration pending the conduct of such election. Other reasons deduced by the government over the indefinite suspension of the local poll was to have time to harmonize about 500 newly created councils since 1999, so that the National assembly shall make provisions for allocation of revenue to the councils as prescribed by section 7(6) of the constitution.

            However, this project emphasis on “critical analysis of revenue and expenditure pattern of Local government administration ( a case study of Mbanabo North local government from 2000 –2004.  Within the period under review (2000-2004) president Obasanjo has not really

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A Critical Analysis Of Revenue And Expenditure Of Local Government Administration In Nigeria (case Study Of Mbanabo North Local Government.