APPRAISING THE FINANCIAL CONTROL APPROACHES IN NIGERIA LOCAL GOVERNMENT SYSTEM

(A CASE STUDY OF ENUGU SOUTH LOCAL GOVERNMENT AREA)

 

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ABSTRACT

 

In consonance with its transition of civil rule programme by the federal government this year, a lot of changes are being carried ou tin the local government.

First was the election of the local government chairman and councilors on the 12^th December 1987, followed by the appointment of sole administrators and replaced by the caretaker committee in 1990.  The current changes include the elected councilors forming he legislature and the secretary appointed supervisory, education etc. as is obtained in the sate government.

These spectacular actions of the federal government has given credence to new directions in the operation of the local government system in Nigeria (Nzelibe, 1990).

It is further to be noted that the federal government from ten percent to twenty five percent, in addition to the ten percent state generated revenue and the internal sources available to them.

With all these funds now available to them and the increase in their responsibilities especially the funding of primary school education, it becomes more important than before that the accounts of the local government should be audited in order to ensure that the money is judiciously used and channeled to the projects meant for them.

In this direction, this research work tries to find out the problem associated with financial control in Enugu south local government so as to proffer solution in order to make the local government more efficient and capable of rendering the services for which it were established.

 

 

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

1.1     Background of the study –         –         –         –         –         –

1.2     Statement of the problem –         –         –         –         –         –

• Purpose of the study –         –         –         –         –         –
• Scope of the study – –         –         –         –         –         –
• Research questions –         –         –         –         –         –
• Research hypothesis –         –         –         –         –         –
• Significant of the study –         –         –         –         –         –
• Limitation of the study –         –         –         –         –         –
• Definition of the terms –         –         –         –         –         –

References   –         –         –         –         –         –         –         –

 

CHAPTER TWO

REVIEW OF RELATED LITERATURE      –         –         –         –

• Literature review –         –         –         –         –         –         –
• Objectives of Local Government –         –         –         –
• Objectives of Local Government Research –         –         –
• Sources of revenue of Local Governments –         –         –

2.5     Financial Control of Local Government         –         –         –

2.6     Local Government Finance        –         –         –         –         –

2.7     Area of Involvement of Local Government in Economic

Development         –         –         –         –         –         –         –

 

 

 

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1     Research design     –         –         ­-         ­-         –         –         –

• Area of study –         –         –         –         –         –         –
• Population of the study –         –         –         –         –         –
• Sample and sampling procedure –         –         –         –
• Instrument of data collection –         –         –         –         –
• Validation of the instrument –         –         –         –         –
• Reliability of the instrument –         –         –         –         –
• Method of data collection – –         –         –         –
• Method of data analysis –         –         –         –         –         –

 

CHAPTER FOUR

DATA PRESENTATION ANALYSIS

4.1     Presentation and analysis of data         –         –         –         –

4.2     Testing of hypothesis       –         –         –         –         –         –

4.3     Summary of results          –         –         –         –         –         –

CHAPTER FIVE

DISCUSSION, RECOMMENDATION AND CONCLUSION

5.1     Discussion of results findings    –         –         –         –         –

5.2     Conclusions –         –         –         –         –         –         –         –

5.3     Implications           –         –         –         –         –         –         –

5.4     Recommendations –                  –         –         –         –         –

5.5     Suggestions for further research          –         –         –         –         –

BIBLIOGRAPHY –         –         –         –         –         –         –         –

APPENDIX –         –         –         –         –         –         –         –         –

 

 

CHAPTER ONE

 

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Nigeria local government system is as old as Nigeria creation.  Even before the arrival of he British to Nigeria and introduction of modern system of local government, the traditional system of local governance exists.  However, with the traditional system of governance, which was administered by the local people, the issue of financial control more often than not generates problems between the operators and the governed and atimes between the operators themselves.

 

During the colonial rule the British divided Nigeria into regions, districts and divisions.  The districts were then like what we call today local government areas.  While the central government controls the entire country, it gave the subordinate units 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 the regional (states) governments without excerptors created, modified and manipulated local government system and institutions as the considered expenditure.  The practice was not suitable and this brought about for a uniform local government system.  It is on this ground that a new local government system popularly called “1976 local government reforms” metamorphosed.

 

Ugwu, (1991:11) states that it is therefore the guest for effectiveness, good functioning and liability of our local government system that brought about this decentralization of the power of our federal government – by creation of a new uniform local government system with the 1976 local government reforms.

 

According to paragraph seven of the 1976 local government reforms, the term tier is designed as a set of local government with their own identity, powers and sources of revenue established under state legislation and with functions 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 respond to service and development 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 of among the people.
4. To enhance the sense of belonging and security through the effective communication between the local government communities 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 that despite all the guidelines structural and managerial reforms, all the financial control approaches in the local government system have not achieved maximum result and it is in this basic that there is the need for the study.

 

1.2     STATEMENT OF THE PROBLEM

According to Odenigwe (1977:19) local government is defined as a system of local administration under which local communities and towns are organized to maintain law and order, provide limited range of social services, public amenities and encouragement co-operation and participation of the inhabitants in joint and endavours towards the improvement of their condition of living.  Form the above definition…

 

 

 

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AN EVALUATION OF DISTRIBUTION CHANNEL IN THE LOGISTICS MANAGEMENT OF PETROLEUM PRODUCTS

(A CASE STUDY OF OANDO PLC ENUGU)

 

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ABSTRACT

 

This research was motivated to appraise the evaluation of distribution channel in the logistics management of petroleum product using Oando plc as the case study.  There was a problem of the tendency of distribution of those petroleum products to the Northern & Southern which effect to a scarcity of the product in other areas of the country.  On the contrary to the problems of this research work, an objective came to be as to ascertain whether there is an effective and efficient distribution of petroleum products, all round the country.

 

In the process of solving and pursuance on the problems and the objectives, both primary and secondary data were sourced.  The targeted respondents were mainly the managers, staffs and customers were statistically determined for the purpose of both questionnaires administration and personal interview.  In organizing and presentation of data collected, tables and percentages were used and various hypothesis were tested using chi-square.  The tests of the hypothesis made the researcher to concluded that Oando plc cannot improve on the distribution channel in the logistics management of petroleum product in our country, as the critical value was greater than the expected value on both tests.

5-99 > 1.2481 & 1.8838 < 5.99

The study reviews some finds which made the researcher to recommended that government should set some security agencies that can militate against perpetrator that vandalize the pipeline and other unscrupulous person (s) that engaged in similar act he believes if carefully implemented will go a long way to shortening the various problems.

 

 

 

 TABLE OF CONTENTS

CHAPTER ONE

 

INTRODUCTION:

This chapter consists of details of the topic under research.  Here the background of the study statement of the problem, objectives and significance of the study will be revealed along with research question so as to enable the researcher know what the research work is all about.

 

1.1     BACKGROUND OF THE STUDY

As a result of petroleum products being the major exporting product among others, of our country.  Our country solely depends on it as the highest percentage revenue on the overall percentage of the total exportation products or items.

In the 1979s after the civil war, Nigerians have Agricultural products as the dependent product in both domestic and international uses.  But today due to greater lucrative of this product all over the world, abandoned the former for the latter.

As the uses is universal, the extractive regions which are at South east and South west encountered a difficult impact to be supplied or distribute to various areas of other regions of the country, due to mainly mismanagement and other opposing factors.  The transportation of this extracting products from the originated area to the refinery was a great problem in the country, because of its form bulky and channel of distribution.

 

The government then employed foreign bodies to refine this product in order to reach to the hook and of the country.  The refinery built and managed by government admitted a foreign firm to have a part in the refinery for the bases of their services as regards to importation.  Still not adequate as the dealers divert this product to their own perspective regions where they expect to dispose it in a high value.

 

At times, this petroleum products i.e. fuel, kerosene, diesel, bitumen to mention but few do change totally the generic colour used to it to another unpredictable colour thereby caused a harm to human body.  These dealers were formerly the staffs of one firm and another for years, left their various perspective offices for the marketing of these products thereby formed one organization and another to impose the prices on this products.

 

The region that is basically not interested in the use of this product by their majority because of their belief or customs has low cost and optimal quantities than other regions.

 

From the facts, it becomes clear that if the left cream of the nation is to be feasible accordingly, a great percentage or rate of the standard of living would have been a something if smile to the populace.

 

HISTORY AND BUSINESS OF THE COMPANY (OANDO)

The company commenced business operations as a petroleum marketing company in Nigeria in 1956 under the name of “ESSO West Africa Incorporated” a subsidiary of Exxon Corporation of the United States of America.  In 1969, the company was incorporated as ESSO Standard Nigeria Limited, and in 1976, the Nigerian Government acquired all of ESSO’ s shareholding interest, thereby fully indigemising the company whose name was subsequently changed to Unipetrol Nigeria Limited.  It became a public limited liability company in 1991, when the federal government divested 60% of its shareholding to the general public, and was quoted on the Nigerian Stock Exchange in February 1992.  In 2000, the Federal Government divested its remaining 40% shareholding in the company, 30% of which was acquired by ocean and oil investment limited whilst the balance of 10% was taking by the Nigerian Public.

 

In 2002, the company acquired Agip Petroli International BV’s 60% shareholding in Agip Nigeria Plc (Agip) and subsequently merged with Agip to become the second largest player in the downstream petroleum marketing industry.  In December 2003, the company announced the launch of “Oando PLC” its new corporate identity to signify the creation of a proudly West Africa brand.  The new corporate identify and branding exercise portrays the values and brand essence of the company service excellence, performance – driven, dynamic and progressive, consistent quality experience and proudly West African.

 

• STATEMENT OF THE PROBLEM

Petroleum products have a numerous problems on logistics management on its distribution, it is the only and major exporting product of our country,  which is disposed in a high rate to another country thereby expect the citizen to

 

 

 

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THE PROBLEMS OF HOSTEL ACCOMMODATION IN HIGHER INSTITUTION (A CASE STUDY OF IMT, ENUGU STATE)

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TABLE OF CONTENT

CHAPTER ONE

1.0     INTRODUCTION                                                             1

• General background to the subject matter 1
• Problem associated with subject matter 2
• Problem that the study will be concerned with 4
• The Importance of the study 5

 

CHAPTER TWO

LITERATURE REVIEW                                                            6

• The Origin of the study 6
• The school of thought within the subject matter 7
• The School of thought relevant to the problem of study 9
• Different method of studying the problem 10
• Summary 11

Reference                                                                                     12

 

CHAPTER THREE

3.0     Conclusion                                                                                  13

• Data Presentation 13
• Analysis of the data 17
• Summary of finding 19
• Recommendation 20
• Conclusion 22

Reference                                                                                     23

 

 

 

CHAPTER ONE

 

1.0     INTRODUCTION

1.1     GENERAL BACKGROUND OF THE STUDY

 

A hostel by definition is a building in which cheap food and lodging and provided for students but unfortunately in festivity institution in Nigeria. The research on this issue this research, though on higher institutions, has a special reference on the institutions, has a special references on the institute of management and technology (IMT) Enugu. It has been established that the inadequacy of hostel accommodation as an adverse effect on the actualization of qualitative and standard education in Nigeria Universities and Polytechnic, that is why we have taken it upon ourselves to find out the lapses and problems that has hevalded to this problems of inadequate accommodation.

 

Moreso, there are other problems which prompted us to research on the topic this includes –

1. Students involvement in armed robbery
2. Students involvement in armed prostitution
3. High rate of disobedience by student as a result of not living in an academic environment.
4. In IMT for instance, students go about looking for accommodation while there are vacancy rooms in the hostel which are wasting.

 

• PROBLEMS THAT THE STUDY WILL BE CONCERNED WITH

This study will be concerned with the problems posed by poor hostel accommodation, as if affects the analytic of education in higher institution with particular reference to the institute of management and technology (IMT) Enugu and these are as follows: –

1. The students lack concentration on studies as a result of deprivation of privacy.
2. Students pay less attention to studies and spend much of their time trying to make money, as the money they have, has bee spent on transportation.

Cultism is about to take over the academic activities that are supposed to be going on in the school, as most of students vow stay off campus

 

 

 

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THE IMPACT OF DISASTER MANAGEMENT project

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CHAPTER ONE

INTRODUCTION

1.1     Background to the study

There are evidence to suggest that in many countries there has been an increase in the rise of natural disasters occurring – natural hazard rise – due to environmental degradation (World Bank 2002). Natural disasters are complex and multifaceted events resulting from mismanaged and unmanaged risks that reflect current condition and historical factors (Alexander 2000).

 

Disaster risk is collective in its origin and remain a ‘public,’ shared risk that makes finding individual, and often community solutions, difficult (comfort 1999). A disaster is said to take place precisely because the losses originated by a given event overwhelm the capacity of a population (local, regional or national) to respond and recover from it. Disaster rise emerges from the interaction between a natural hazard – the external risk factor – and vulnerability – the internal risk factor (Cardona 2001).

 

International consciousness rising about integrated disaster risk management (of which disaster risk mitigation is a part) was given a boost by the recently concluded United Nations International Decade for Natural Disaster Reduction.

 

Similarly, The Nigerian Disaster Management Act (Act 57 of 2002) heralds a new era as far as the way in which disaster risk, hazards and vulnerability will be perceived in Nigerian in the future. As one of the finest pieces of legislation ever promulgated in Nigerian, the right into the backyard of each and every state and local municipality, as well as all the organs of the state and entities in the public sector.

 

It calls for the establishment of structures, frameworks, plans, procedures, and strategies that cut across all government sectors. It introduces a new way of managing the complex and perilous society in which we find ourselves. It further gives the responsibility of managing disaster risks to the highest political authority in each sphere of government.

 

The cornerstone of successful and effective disaster risk management is the integration and coordination of the entire role – players and their activities into a holistic system aimed at disaster risk reduction.

 

Disaster risk reduction in Nigerian consists of a variety of crosscutting facts requiring the participation of a host of sectors and disciplines, not only from within the spheres of government (Federal State and Local), but involving the private sector, civil society, Non-Governmental Organization (NGOs), Community-Based Organizations (CBOs), Research Institutions, and Institution of higher Learning, to name but a few. In the context of disaster risk management, none of these role-players can act in isolation from the other.

 

Disaster Risk Management in Nigeria has been established as a public sector function within each sphere of government. But disaster risk management goes beyond pure line function responsibility. Disaster Management Act (Act 57 of 2002) as an integrated, multi-sectoral, multi-disciplinary approach aimed at reducing the risks associated with hazards and vulnerability. It therefore needs to become an integral part of the development planning.

 

Process in order to be successful. For this reason disaster risk management plans form an integral part of the Integrated Development Plan of each of this state. In the light of this the budgeting process within the state government sphere in Nigeria, aiming at sustainable development within state government, the direct like with disaster risk management is undeniable of strategic importance. Development planning should therefore be assessed according to its contribution towards either risk reduction or disaster risk augmentation.

 

Unfortunately, the current policy and legislation do not provide adequate guidance to state government in terms of funding arrangements for disaster reduction, response and recovery. Various funds and funding mechanisms are available; this leads to a consideration amount of confusion. The need to consolidate all disaster reduction and response-related funding into one funding pool is well known and has been already discussed within the disaster management fraternity.

 

Although this would be the ideal situation, it is not realistic to assume that an all-inclusive fund would be in any way possible given the public financial infrastructure of Nigeria. It is against this background that this research is triggered and search light is put to northern Nigeria sequent to the current security challenges and flood that have brought untold hardship to people in the North.

 

1.2     Statement of problem

The act establishing the National Emergency Management Agency of Nigeria makes specific provision for the funding of post-disaster recovery and rehabilitation as well as requiring that a disaster management plan should be prepared for a specific state and should form an integral part of the state’s

 

 

 

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THE IMPACT OF CONTRIBUTORY PENSION SCHEME ON THE NIGERIAN PUBLIC .

 

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ABSTRACT
The problems associated with the 1979 Pension Act necessitated its abolishment and on 25th June 2004 and a new pension reform Act was enacted. The unique feature of this new Act is that it provides for contribution for the employees and the employers, each making 7.5% contribution to the scheme, except for the military.

Voluntary saving was also introduced where self employed workers can make their contribution. A commission was set to register pension administrators and fund custodians and to ensure their supervision. The purpose of this research is to evaluate the effects of the reform Act on the public. In this evaluation, the researcher uses both primary and secondary data for purposes of collecting data.

The finding of the research revealed that most of the employees have little or no knowledge of the provision of the Act. Voluntary saving that will help many Nigerians are not made or encouraged.

However, most employees that are into the scheme believed that they are satisfied with the operation of the pension administrators thus, the researcher recommended that government should increase its contribution to its employees.

It is also recommended that copies of the Act should be made available to the public and employees to ensure that workers have good knowledge of the Act.

 

 

 

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Prior to the enactment of the Pension Reform Act (2004), Pension Schemes in Nigeria had been bedeviled by many problems. The public service operated and unfounded defined benefits scheme and the payment of retirement benefits were budgeted annually. The annual budgetary allocation for pensions was often one of the most vulnerable items in budget implementation in the light of resources constraints. In many cases, even where budgetary provisions were made, inadequate and untimely release of founds resulted in delays and accumulation of arrears of payment of pension right. It was obvious therefore that the defined benefits scheme could not be sustained (Pension, 2007).
In the private sector on the other hand, many employees were not covered by the pension schemes put in place by their employers and many of these schemes were not founded. Besides, where the schemes were funded, the management of the pension funds were full of malpractices between the fund managers and the trustees of the pension funds (Pencom, 2007).

 

This scenario necessitated a re-think of pension administration in Nigeria. Accordingly, the pension was initiated in order to address and eliminate the problems associated with pension schemes in the country. The out come of the reform was the enactment into law of the Pension Reform Act. 2004. (Pen com, 2007).

The pension reform programme is governed by the key principles of sustainability, safety and security of benefits, transparency, accountability, equality, flexibility, inclusively, uniformity and
practicability (Pencom, 2007).

The pension Reform Act 2004, established the National Pension Commission (Pencom). As the body to regulate, supervise and ensure the effective administration of pension matters in Nigeria. It licenses, regulates and supervises pension operation of Ppension Fund Administrators (PF A), Pension Fund Custodians (PFCs), Closed Ppension Fund Administrators (CPFAs), existing schemes that are approved to continue by the commission and any other pension related institutions (Economic Confidential, Dec., 2007).

 

This study will give an insight to the new Pension Reform Act 2004, evaluate the effect of the contributory Pension Scheme on the Nigerian Public. The study will also look at the roles of key players in the new pension reform and assesses their contribution towards the development to the pension industry. Lastly, the study will provide an alternative approach to the new pension system in Nigeria.

 

1.2 STATEMENT OF THE PROBLEM
In line with the same policies adopted every where, the Nigerian government has introduced a new pension scheme, which amounts to privatization of pensions. Workers will no longer pay into a State
Pension Fund. Now they will depend on private funds that supposedly will make the money grow by investing it in stocks, shares and other speculative activities. What is worse is that if any of these funds collapse, the government provides no guarantee.

 

The new pension reform seems to be another anti-worker policy of the government, where the future of the workers is now openly tied to the whims and caprices of a series of emergency investors. These so – called Pension Fund Administrators and custodians have been licensed by the government to collect compulsorily a substantial percentage of workers’ salary every month which can be spent or invested in other ventures as the administrators so desire.

The new Pension Reform Act of 2004 is one of the numerous ‘reforms’ pushed through in 2004 to reduce government expenditure on the social welfare of the populace. The philosophy here is to allow the government to shelve a major social responsibility of catering for its workforce after retirement in the form of gratuity and pension payments.

 

Before now, the positions of things in the workplaces were in two forms, depending on which establishment the workers belong, that is, either the private or public sector. The situation in the public sector of the pre ­ existing pension scheme is that a civil servant or worker working for the government will collect a certain amount of money worked out as gratuity depending on the number of years put into service. The gratuity is expected to be paid immediately the worker stops working. Pensions are also paid immediately on a monthly basis if the worker is of the “pensionable” age.

 

The situation in the private sector is different to what is obtained in the public sector. Here, what the worker collects at the end of his/her working life with the company is of a contributory format. The worker contributes a pre-defined percentage of the monthly basic salary to the pension fund and the employer also contributes as related percentage of the worker’s basic salary to the pension fund.

 

The worker will then collect the total contribution at the end of the work life with the company. The Act now makes it mandatory for all workers to pay 7.5% of their salary to the pension funds, the employer is also expected to contribute another 7.5% equivalent of the worker’s basic salary to the monthly contribution.
The reality is that for the workers in the private sector, it immediately translates into the workers getting less pay than what they are getting previously. The previous contribution used to be 4% but now it has almost doubled to 7.5%. in the salary of the workers.

 

Whereas, the new situation is almost anti-worker in the public sector. Here the employer, which is government at all levels, is being relieved of a major social responsibility of caring for its workers after retirement. Now the government workers must cough up 7.5% of their salary every month as a contribution to the pension fund.

 

To the workers in the public sector, the new situation as per pension contribution is a double blow. This is because, lifelong pension and gratuity is the only thing each worker probably still looks to as a mild compensation for the very poor salary package they are presently receiving as wages. To now say that they have to contribute for their pension, which will also not last till they die, from their present meager salary is most uncaring and callous.

 

Another fact is that the present contributory pension scheme is not guaranteed by the government. In the final analysis, it is not different from any other savings in the bank.

 

In order word, if the pension fund administrator and pension fund custodians should collapse, the pension fund under their care also collapse. That is the real situation and this is why the government is saying that if this should happen, it is the workers liability because it is the worker’s free will to choose his/her own Pension Fund Administrator (PF A).

 

This study will explain the operation of the new reform and also urge the public to be extra careful with the operation of the new reform. The study will also proffer an alterative approach to the reform should the current reform failed.

 

 

 

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