FEDERALISM AND REVENUE UTILIZATION IN LANGTANG NORTH LOCAL GOVERNMENT AREA OF PLATEAU STATE FROM 2015 TO 2019

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

CHAPETR ONE

1.0   INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Research questions

1.4        Objective of the study

1.5        Significance of the study

1.6        Scope of the study

1.7       Definition of terms

CHAPETR TWO

LITERATURE REVIEW

2.1 introduction

2.2 conceptual review

2.3 empirical review

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

Abstract

Federalism concerns the sharing of resources among federating units to enable them fulfill their constitutional obligations. This study attempted to capture the underlying imperatives of federalism for national development. It opened with the conceptual explication of the concepts of federalism, fiscal federalism and development from where it was noticed that the principle of fiscal autonomy and fiscal integrity are paramount aspects of the survival and continued existence of truly federating system of government. In trying to achieve the purpose of the study, the study anchored on Buchan Fiscal Residuum Theory having a leeway to determining the balance between the contributions made and the value of the public services returned to individual. The study revealed that the contending issues and challenges of fiscal federalism could be in form of mismatch between revenue sources and the functions of the various tiers of government. The study concluded and recommended that there is need to ensure that the distribution of revenue should encourage each state and local governments to improve internal revenue generation, not to constantly and wholly depend on fund coming from the federation account.

CHAPTER ONE

                                        INTRODUCTION

1.1 Background of the study

Federalism, otherwise known as federal system, is a public sector with both centralized and decentralized levels of decision making in which choices made at each level concerning development and the provision of public services are determined largely by the demands for these services by the residents of the perspective jurisdiction. Few national issues have provoked profound debate and lengthy discussions than the practice of federalism and resource control within the past four decades. Indeed these twin concepts formed the focal points among other things at the well-attended Constitutional Conference in 1957 at Lancaster House, London and the 1958 Conference which led to the enactment of the 1960 Independence and 1963 Republican Constitutions. The 1960 Independence and the 1963 Republican Constitutions respectively enshrined some fundamental principles of fiscal federalism and elements of resource control in view of the level of derivation percentage that the regions enjoyed. In the course of the nation‟s political evolution, these constitutions were either suspended, modified or repealed by the ruling military leadership and the country tilted to a unitary system with a very strong centre. With the return of democratic governance and the unsolved developmental problems that the Niger Delta region has successively experienced, there has been a spontaneous agitation for the institutionalization of resource control and the practice of true federalism. This is in view of the underlying philosophy of federalism as a system of government where the component units of a political organization participate in sharing powers and functions in a cooperative manner. Control to the federal idea is granting financial autonomy to the different levels of government. Put differently, financial subordination makes mockery of federalism no matter how carefully the legal forms may be preserved. The states must not permanently remain dependent on the federal government for allocations. In view of the relationship of the subject to Nigeria‟s continuous existence as an indivisible entity, it has become necessary to undertake a comprehensive study of the subject from an historical perspective. One major character of the Nigerian union which was to remain for many years was that the three regions of the North, West and East retained control of their natural resources. Indeed it was one positive aspect of the practice of federalism in Nigeria. Thus, Ajibola (2008) maintained that in a federal system, different governments provide different services to overlapping jurisdiction. In Nigeria for instance, the federal system comprises federal, state and local governments while in the United States, federal system includes the federal government, states, counties, townships, cities, school districts and special districts. It is in view of the underlying imperatives of federalism that Okoli (2004) argued that federalism is a system of shared power between units of government. It is a way of organizing a nation so that two or more levels of government have formal authority over the same area and people. From this point, it could be seen that federalism rests on divided sovereignty where state and nation control some portions of political power independent of other’s authority. In federalism, power is shared among congress, the executive, the courts or judiciary and this shared power could be separated presumably in order to prevent over concentration of the power and its consequent abuse as to further prevent threats to individual liberty. In a federal structure, adequate authority is given to each level of government to enable it perform its responsibilities without interference. In such cases there is the division of power between the central, states and local governments. Federalism as being practiced in developed countries such as the United States of America, will enhance unified, peaceful, political and socio-economic development. Federalism therefore, implies the existence in one country of more than one levels of government each with different expenditure responsibilities and taxing powers, it is essentially about government structure (Nwosu, 2010; Anam-Ndu, 2007). One of the most discussed issues in Nigeria is the fiscal federalism, this is because it has generated so many problems capable of threatening the corporate existence and continuity of the Nigerian state. The problems emanating from proper application of true federalism include total neglect of areas where mineral resources are exploited; criticism on the mode of determining equitable and acceptable revenue sharing formula; neglect of tax bases of various states and local government and the agitation for resource control. These factors have accounted for lack of rapid economic development of the country.

1.2 STATEMENT OF THE PROBLEM

Oil is an essential fungible resource which constitutes approximately one-third of global energy consumption and therefore remains one of the most strategic resources in global economy and international politics (BP, 2012). Oil was discovered in Nigeria in 1956 by Shell BP at Oloibiri in the Niger delta but actual production started in 1958. Since then, oil has become a major source of revenue for Nigeria and has displaced agriculture which  hitherto served as the mainstay of Nigerian economy. For instance, between 1958-1969, agriculture contributed 52 percent of Nigeria’s Gross Domestic Product (GDP) of Nigeria with oil contributing just 0.007 percent, today oil contributes over 90% of the country’s total export earning, and about 80% of total government revenue. Successive Nigerian governments on its part have shown efforts over the years to grow the nonoil export trade by establishing supportive policies. Some of these policies with varying degrees of successes include but not restricted to: protectionism policy in the mode of import substitution policy of industrialization in the 1960s; trade liberalization policy (this took the form of Structural Adjustment Programme) of the mid 1980s and export promotion policy of 1990s which was executed through intensified policy support to Small and Medium Scale Enterprises (SMEs) to enhance productivity and subsequently, export of local products (Onodugo, Vincent, Ikpe & Anowor, 2003). It is in view of this that the researcher intend to examine federalism and revenue utilization in Langstang local government area of Platuae state from 2015-2019.

1.3 OBJECTIVE OF THE STUDY

The study has one objective, which is further divided into specific and general objective; the general objective is to examine federalism and revenue utilization in Langstagn North LGA of Platuae state, the specific objective are;

1. i) To examine the effect of federalism on revenue utilization in Langstang North LGA
2. ii) To ascertain if there is any significant relationship between federalism and revenue utilization in Langstang North LGA of Platuae state

iii) To Examine the impact of effective leadership on revenue utilization in Langstang North LGA

1. iv) To proffer suggested solutions to the identified problem

1.4 RESEARCH QUESTIONS

The following research questions were formulated by the researcher to aid the completion of the study;

1. i) Does federalism has any effect on revenue utilization in Langstang North LGA?
2. ii) Is there any significant relationship between federalism and revenue utilization in Langstang North LGA of Platuae state?

iii) Does effective leadership has any impact on revenue utilization in Langstang North LGA?

1.5 RESEARCH HYPOTHESES

The following research hypotheses were formulated by the researcher to aid the completion of the study;

H₀: There is no significant relationship between federalism and revenue utilization in Langstang North LGA of Platuae state

H₁: There is a significant relationship between federalism and revenue utilization in Langstang North LGA of Platuae state

H₀: effective leadership does not hava any impact on revenue utilization in Langstang North LGA

H₂: effective leadership does hava an impact on revenue utilization in Langstang North LGA.

1.6 SIGNIFICANCE OF THE STUDY

At the completion of the study, the findings will be of great importance to the management of Langstang North Local government area of Platuae state as the study seek to examine the role of federal system of government and revenue utilization at the local level, the study will also be of great importance to the electorate as the study seek to examine the impact of effective leadership and revenue utilization in the state and local government, the study will also be of significance to researchers who intend to embark on a study in a similar topic as the study will serve as a pathfinder to further research. Finally the study will be of great importance to students, teachers, academia’s, and the general public as the study will contribute to the pool of existing literature and also contribute to knowledge.

1.7 SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers federalism and revenue allocation in Langstang North LGA of Platuae state, but in the course of the study, there are some factors that limit the scope of the study;

AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study

TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

FINANCE: The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover.

1.8 OPERATIONAL DEFINITION OF TERMS

Federalism

Federalism is the mixed or compound mode of government, combining a general government with regional governments in a single political system

Revenue

In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers.

Utilization

The proportion of the available time (expressed usually as a percentage) that a piece of equipment or a system is operating.

1.9 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.

Related Project Topics :