CHALLENGES AND PROSPECTS OF FINANCIAL MANAGEMENT IN LOCAL GOVERNMENT COUNCILS IN NIGERIA

Globally, government pursued various form of public Financial Management (FM) reforms to 
enhance Local Government (LG) performance. A poor FM has contributed to the failure and inefficiency of LG in achieving substantial development, while most LG faces the problems of wide gap between citizens’ needs and the financial resources. It is against this background that the study examined FM in LG with a view to determining its contribution to the economy, efficiency and effectiveness of LG administration. The study employed an exploratory research design with focus on relevant literatures. The study concluded that LG administrators should act in the same manner as their counterparts in the private sectors based on modern FM practices, this will increase efficiency, financial capability, transparency and accountability in goods and services delivery. In addition, a sound internal control system should be put in place to minimise the level of fraud, corruptions and wastages affecting LG. Besides, LG should always prepare accurate and reliable annual budget, while financial planning and control should be seen as an important aspect of an effective FM.