A STUDY ON THE CHALLENGES FACING LOCAL GOVERNMENT LEADERSHIP IN EFFECTIVELY UTILIZING AVAILABLE REVENUE IN CAMEROON

CHAPTER ONE INTRODUCTION 1.1 Background of the Study In the modern era, local governments around the world play a critical role in advancing development and improving citizens' quality of life. Strengthened governance mechanisms and the rise of civil society have contributed to increased transparency and accountability within these institutions. Today, central governments increasingly recognize local governments as key partners in addressing a broad range of public policy issues and responsibilities. These include enhancing the fairness and efficiency of social service delivery and contributing substantially to infrastructure development, both of which are essential for fostering economic growth and improving living standards (Tchindjang & Nanfosso, 2018). However, achieving this level of importance has not come without challenges. Local governance systems still face multiple obstacles that hinder their effectiveness. The process of decentralization has often been marked by inequality and serious structural challenges. In many countries, intergovernmental institutions present ongoing hurdles, and local authorities often lack the resources and capacities needed to function effectively. This undermines their ability to collaborate productively with higher-level government entities on shared development goals. Local government systems remain vital to promoting national development, advancing decentralization, and ensuring efficient delivery of public services. In Cameroon, local governments—such as the Bafoussam Local Government Area (LGA)—are charged with managing their respective jurisdictions and ensuring the welfare of residents by delivering essential services, infrastructure, and good governance (Ngwa & Ebai, 2021). The ability of these local governments to operate transparently and efficiently is closely tied to how well they utilize their financial resources. Studies indicate that many Local Government Authorities (LGAs) in Cameroon face significant barriers in effectively managing and utilizing their revenues, even though this task is fundamental to their mandate. Common challenges include administrative inefficiencies, corruption, and inadequate financial planning and management skills (Jonga & Ntui, 2020). These issues can lead to the misallocation of resources, poor service delivery, and stagnated development within local communities. Bafoussam LGA, located in Cameroon’s Western Region, has faced its share of difficulties in managing its revenue effectively (Tchindjang & Nanfosso, 2018). As the local population grows and demand for public services rises, it becomes increasingly urgent for the local government to overcome these challenges in order to meet the expectations of citizens and promote regional development. A critical step toward resolving these challenges lies in understanding them thoroughly. This makes it possible to pinpoint areas for improvement and identify practical solutions. By closely examining the specific issues confronting Bafoussam LGA, stakeholders and policymakers can design targeted strategies to improve revenue utilization, increase transparency and accountability, and ultimately strengthen the overall performance of local governance. As such, this study seeks to explore the challenges surrounding the effective use of revenue by local government leadership in Cameroon, focusing specifically on Bafoussam LGA. 1.2 Statement of the Problem Proper management and allocation of financial resources is fundamental to good governance and service delivery at the local government level in Cameroon. The Bafoussam Local Government Area, like other LGAs, is tasked with overseeing various revenue sources such as taxes, levies, and grants, which are essential for financing public infrastructure and services. Despite this, various studies have reported that numerous local governments in Cameroon struggle to effectively utilize their available financial resources (Jonga & Ntui, 2020). The reasons for these struggles include poor financial management systems, lack of transparency and accountability, corruption, and limited administrative capacity (Mubenga & Yinda, 2019). In Bafoussam LGA, these challenges can significantly affect the ability of local leadership to respond to the needs and expectations of their constituents. When revenues are not properly utilized, it can result in underfunded services, delayed or abandoned infrastructure projects, and a general decline in community well-being. However, there remains a research gap in understanding the specific barriers that Bafoussam LGA faces in managing its revenue effectively. For this reason, it is important to carry out an in-depth investigation into the particular challenges that hinder the local government leadership in Bafoussam from making efficient use of its income. By identifying these challenges, stakeholders can be guided in improving income management, promoting transparency and accountability, and enhancing service delivery and development outcomes for the residents of the area. Therefore, this study seeks to investigate the challenges associated with the effective utilization of revenue by local government leadership in Cameroon, using Bafoussam LGA as a case study. 1.3 Objective of the Study The main aim of this research is to examine the challenges that affect the effective use of revenue by local government leadership in Cameroon, with a particular focus on Bafoussam LGA. The specific objectives are: i. To identify the sources of revenue available to Bafoussam Local Government Area (LGA) in Cameroon. ii. To assess the key challenges that hinder effective utilization of revenue by the local government leadership in Bafoussam. iii. To propose practical strategies to improve revenue utilization in Bafoussam Local Government Area (LGA), Cameroon. 1.4 Research Questions The following research questions guide the study: i. What are the main sources of revenue available to Bafoussam Local Government Area (LGA) in Cameroon? ii. What are the primary challenges affecting the effective utilization of revenue by Bafoussam local government leadership? iii. What strategies can be implemented to enhance revenue utilization in Bafoussam Local Government Area (LGA), Cameroon? 1.5 Significance of the Study The outcomes of this study are significant for several reasons: Policy Development: The research findings will provide policymakers at both local and national levels with insights into the challenges currently facing local governments. These insights can inform the creation of more targeted and effective policies aimed at improving the utilization of financial resources in local governments across Cameroon. Academic Contribution: The study contributes to the growing academic literature on public financial management and local governance in developing countries. It can serve as a valuable reference for future research and provide a deeper understanding of the administrative and fiscal realities of local governments in Cameroon. 1.6 Scope of the Study This study is centered on the challenges surrounding the effective utilization of revenue by local government leadership in Cameroon, with Bafoussam LGA serving as the case study. The research will empirically examine the revenue sources available to Bafoussam LGA, assess the specific challenges associated with managing these funds, and propose practical strategies to improve financial utilization within the local government. Geographically, the study is limited to Bafoussam LGA in Cameroon. 1.7 Limitation of the Study As with any academic endeavor, this study faced a few limitations. Limited financial resources posed a challenge to the researcher’s ability to gather comprehensive materials, access relevant literature, and conduct broad data collection activities (including internet use, questionnaires, and interviews). Consequently, the researcher opted for a manageable sample size. Additionally, the researcher had to balance this project with other academic commitments, which constrained the amount of time that could be dedicated exclusively to this study. 1.8 Definition of Terms Local Government: This refers to a governmental authority that handles administrative and governance functions at the municipal or grassroots level. In Cameroon, local governments are responsible for providing services such as infrastructure, education, and healthcare within their jurisdictions. Revenue Utilization: This is the process through which government bodies manage and allocate funds obtained through various sources such as taxes, fees, and grants, to fulfill their operational and developmental responsibilities. Effective Utilization: This term refers to the optimal and strategic use of available resources—in this context, financial revenues—to achieve desired outcomes and developmental goals. Leadership: This pertains to the individuals or groups responsible for steering the direction of the local government, making decisions, and overseeing the implementation of policies and the use of resources. REFERENCES Jonga, P., & Ntui, T. (2020). The Role of Local Government Financial Management in Public Service Delivery in Cameroon. Journal of African Governance, 12(3), 456-472. Mubenga, L., & Yinda, G. (2019). Challenges in Revenue Management and Utilization in Cameroon: A Case Study. African Public Policy Review, 7(2), 95-110. Ngwa, S., & Ebai, C. (2021). Challenges of Local Government Administration in Cameroon. International Journal of African Studies, 5(4), 175-189. Tchindjang, P., & Nanfosso, R. (2018). Decentralization and Local Development: The Case of Cameroon. African Development Review, 30(4), 417-429.