CHAPTER ONE

1.1            AN OVERVIEW

In Nigeria, there are three tiers of public sector administration – the Central (Federal) government, State government; and Local governments.  This project is devoted to the examination of the local government’s accounts, and the development of financial management with their departments.  It is therefore pertinent at this point to mention that the local government is the third tier of government in Nigeria.

Local government in Nigeria derives their existence from the constitution of the Federal Republic of Nigeria (promulgation) Decree No. 12 of 1989 and the civil service (re-organisation) Decree No. 43 of 1989 as brought about a new awakening to make the public sector virile dynamic, result and development oriented.  At present with the creation of more 177 local governments, the total number of local governments in Nigeria has therefore increased to …..   One would then guess what effects will it have.  Even before that, like since 1979, there has been a significant rise in local government expenditure in line with greater emphasis on grassroots participation.  For instance, in 1992 while complete political administrative and financial independence was granted to the local government.  From State control, its responsibility was enlarged with effect from 1992, local government has been directly responsible for primary health care.  This is in addition to its statutory functions.