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CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Nigeria local government system is as old as Nigeria creation. Even before the arrivals of the British to Nigeria and introduction of modern system of local government, the traditional system of local government exists. However, with traditional system of governance, which was administered by local people, the issue of financial control more often than not generates problem between the operator and the governed and a times between the operators themselves. During the colonial rule the British divided Nigeria into regions, districts and division. The districts were then like what we call today local government areas. While the central government controls the entire country, it gave the subordinate unit some degree of independence in the control of its affairs and provision of certain amenities in the local areas. Prior to the lunching of the 1976 local government reforms, all regional (states) government without acceptors created, modified and manipulated local government system and institutions as considered expenditure. The practice was not suitable and these brought about for a uniform local government system. It is on these grounds that a new local government system popularly called “1976 local government reforms” metamorphosed.
Ugwu, (1991: 11) states that is therefore the quest for effectiveness, good functioning and reliability of our local government system that brought about this decentralization of the power of the federal government by the 1976 local government reforms.
According to paragraph seven of the 1976 local government reforms, the term tier if design as a set of local government with their own identity powers and source of revenue established under state legislation and with the function for which they have been responsible to the state. The guide line equal articulated the following objectives of the new local government reforms.
1) To enable the people to service and activities in their communities through their representative bodies
2) To mobilize human and material resources through the involvement and participation of the people in the programme for the development of their communities.
3) To create favourable condition for democratic development initiative and qualities among the people.
4) To enhance the sense of belonging and security through the effective communities and between the local government communication and the three levels of government in Nigeria.
5) To provide a two way channel of communication between local communities and government (both state and federal
6) To bring government nearer to the people and guarantee reasonably, adequate functions, financed resources and staff for local government. It is important to state that despite the various reforms that were equally other structural led to the creation of local government in Nigeria from 229 in 1977 to 301 in 1987. In 1989 we had 589 and presently we have 774 local government areas in Nigeria. Enugu south local government areas which we used as a case study was created in 1991 by the general Ibrahim Badamosi Babangida led administration it is therefore, necessary to state despite all the guidelines structural and management and managerial reforms, all the financial control approaches in the local government system have not achieved  

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