FINANCIAL MANAGEMENT CHALLENGES AND LOCAL GOVERNMENT DEVELOPMENT IN BAYELSA STATE

Abstract

The study examines the influence financial management challenges on the development of local government in Bayelsa State, Nigeria; specifically, it investigates the effect of inadequate funding, weak financial management systems, corruption, and mismanagement of funds on local government development. The population of the study comprises all eight local government areas in Bayelsa State, and a multi-stage sampling procedure is utilized. Data is collected through structured questionnaires, and inferential statistics was employed for analysis. The study finds a moderately high positive relationship (Pearson's r = 0.543) among inadequate funding and local government development. This suggests that increased funding is associated with enhanced development prospects. Similarly, a weak financial system exhibits a substantial negative correlation (Pearson's r = -0.251) with development. Corruption demonstrates a robust negative correlation (Pearson's r = -0.683) with development, highlighting the detrimental impact of corruption on progress. Conversely, a positive relationship (Pearson's r = 0.316) exists among mismanagement reduction and local government development, indicating that improved financial management can lead to enhanced development outcomes. In line with the findings, several recommendations are proposed. Firstly, allocating adequate financial resources to local governments is advised, as it positively affects development. Secondly, strengthening financial systems through effective practices and transparency measures is recommended. Thirdly, combating corruption is crucial, necessitating the implementation of anti-corruption measures and transparency enhancement. Lastly, enhancing financial management practices, including internal controls and accountability mechanisms, can mitigate the negative consequences of fund mismanagement.