The objective of the study is to appraise local government finance pattern in Nigeria using annual secondary data from 1993 to 2014. This is imperative because local governments at least in principle, deal with grassroots politics- keeping law and order, basic sanitation, constructing and maintaining local roads, supplying water, administering schools, providing skills training and employment for residents. In an attempt to achieve the broad objective of this study, an ordinary least square (OLS) econometric model was formulated to capture the relationship between local government expenditure and revenue in Nigeria. The data for the analysis of the model were collected from secondary sources to include the Central Bank of Nigeria (CBN) Statistical Bulletin. Ordinary least square multiple regression approach was adopted for the estimation of the regression model formulated and the result of the model was facilitated using the Econometric View (E-View). The result of the analysis shows clearly that value added tax has a significant positive impact on local government finances, while federal allocation has a significant positive impact on local government finances. It was also established that internally generated revenue and state revenue allocation do not exert a significant impact on local government finance pattern in Nigeria. Among others, the study recommends the urgent need for local Government System in Nigeria to improve their financial control mechanism and to rationalize its expenditure patterns, in order to achieve optimum performance.
TABLE OF CONTENTS
CHAPTER ONE – INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Scope of the Study
1.7 Justification of the Study
1.8 Operational Definition of Terms
CHAPTER TWO – LITERATURE REVIEW
2.1 Conceptual Review
2.1.1 Concept of local government
2.1.2 Functions and Sources of fund to the Nigerian Local Government Authorities in Nigeria
2.1.3 Sources of Local Government Revenue
2.1.4 Problems of Local Governments Financing
2.1.5 General Profile of Local Government Expenditures
2.2 Theoretical Review
2.2.1Democratic- Participation School
2.2.2 Efficiency Services School
2.2.3 Decentralization Theory
2.2.4 Musgrave Rostow’s Theory 1969
2.2.5 The Peacock and Wiseman Theory 1890-1955
2.2.5 Ernest Engel’s Theory of Public Expenditure (1821–1896)
2.3 Empirical Review
CHAPTER THREE – RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Study Area
3.4 Population of the Study
3.5 Sample Size and Sampling method
3.6 Nature and Sources of Data
3.8 Model Specification
3.9 Method of Data Analysis
CHAPTER FOUR – PRESENTATION AND ANALYSIS OF DATA
4.1 Presentation of Result
4.2 Hypotheses Testing
4.3 Discussion of Findings
CHAPTER FIVE – SUMMARY CONCLUSION, AND RECOMMENDATIONS
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendations
REFERENCES
APPENDIX
