CHAPTER ONE
INTRODUCTION
1.1BACKGROUND OF THE STUDY
Nigeria local government system is as old as Nigeria creation. Even before the arrivals of the British to Nigeria and introduction of modern system of local government, the traditional system of local government exists. However, with traditional system of governance, which was administered by local people, the issue of financial control more often than not generates problem between the operator and the governed and a times between the operators themselves.
During the colonial rule the British divided Nigeria into regions, districts and division. The districts were then like what we call today local government areas. While the central government controls the entire country, it gave the subordinate unit 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 regional (states) government without acceptors created, modified and manipulated local government   system and institutions as considered expenditure. The practice was not suitable and these brought about for a uniform local government  system. It is on these grounds that a new local government   system popularly called “1976 local government   reforms” metamorphosed.
Ugwu, (1991: 11) states that is therefore the quest for effectiveness, good functioning and reliability of our local government   system that brought about this decentralization of the power of the federal government by the 1976 local government   reforms.
According to paragraph seven of the 1976 local government   reforms, the term tier if design as a set of local government   with their own identity powers and source of revenue established under state legislation and with the function for which they have been responsible to the state.