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CHAPTER ONE

INTRODUCTION

The Local Government is the third tier of government which is the tier of government closest to the citizens. Local Government occupies a strategic position in the administrative and developmental processes of every state, especially the rural areas. Since it is practically impossible for the central government to control every detail of the state’s functions, it is necessary that local governments are established to attend to the details of local administration, giving full weight to local preferences and prejudices on every issue. Thus, this study will focus on the problem of revenue generation in the Abeokuta-North Local Government area. Besides, it will articulate the introductory aspects of study which includes background, statement of the problem and the scope of the study.

Background of the Study

Bello-Imam(1986) asserts that “countries all over the world have appreciated the fact that it is cumbersome to administer and manage the affairs of the state by central government authority”. Consequently, they have established local government or structures of subsidiarity at the local levels. The United Nations in its conception of Local Government asserted that “it is a political division of a Nation (or in a federal system) which is constituted by law and has sustained control of local affairs, including powers to impose taxes or exact labour for prescribed purposes. The governing of such an entity is elected or otherwise locally selected” (Abubakar, 1993). According to Ojofeitimi (2000), the word “local” suggests that councils are meant for small communities and “government” means that they have certain attributes of government. Agbakogba and Ogbonna (2004) define the local government from a legal perspective. They see it as a “political administrative unit that is empowered by law to administer a specific locality”.

The practice of local government in Nigeria is traceable to the pre-colonial era which was characterised by local authorities managing the affairs of their localities and communities independently. The local authorities included the Obas, Emirs, Council of Elders and other such traditional arrangement. This was met with gradual transformation upon the emergence of the colonial period. Based on available record, the first local administration ordinance was the Native Administration Ordinance No 4 of 1916 which was designed to evolve from Nigeria’s old institutions, the best suited form of rule based on the people’s habit of thought, prestige and custom.(Bello-Imam 1990). While the colonial government managed the affairs of the Nigerian state at the centre, they introduced native authorities under the policy of association/indirect rule to see to local administrations at the grassroots. Macpherson constitution of 1946 initiated some remarkable changes; the regions introduced some reforms in their local administrations in the 1950s which aimed at enhancing performance.

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