LOCAL GOVERNMENT AND ECONOMIC DEVELOPMENT IN IDEMILI SOUTH LGA OF ANAMBRA STATE (2015 - 2018)

CHAPTER ONE INTRODUCTION 1.1background of the Study Globally, the rapid pace of industrialization, driven largely by the expansion of technology, has compelled governments in both developed and developing nations to formulate policies and strategies aimed at enhancing physical infrastructure, economic growth, and human development, particularly at the grassroots level. Mensah and Ojowu (1989), as cited in Chioma (2022), argue that rural areas in many developing countries, particularly in Africa, have remained underdeveloped due to systemic neglect and ineffective governance structures. These glaring challenges has motivated governments worldwide to adopt decentralized governance systems, with local government administration emerging as a vital mechanism for promoting grassroots development. In Nigeria, the introduction of third-tier administration via 1979 and 1999 Constitution provided the legal framework for the establishment of democratically elected local councils with the aim of serving a vital response to the growing needs of local communities despite the nation's constrained resources. From these, the raison d’eter for local governments in Nigeria have been to deliver essential services, including education, healthcare, infrastructure development, and waste management—all critical to community well-being and socio-economic progress. According to Umedum, Okwu, and Duru (2020), local government administration represents an institutionalized system of governance that is deeply ingrained in human societies. Being the tier of government closest to the people, local government authorities play a crucial role in mobilizing communities for self-help initiatives, fostering civic engagement, and ensuring broader participation in local decision-making processes. Wechie, Ajieh, and Egobueze (2020) further emphasize that local government remains a pivotal driver of economic development by facilitating grassroots governance, enhancing infrastructure, and promoting economic empowerment. As the administrative structure closest to the people, local government serves as an effective conduit for implementing developmental policies and programs that directly impact communities. From an economic perspective, Umar, Ogbu, and Ereke (2019), citing Todaro and Smith, define economic development as a sustained increase in living standards and overall economic well-being, which requires deliberate and strategic interventions from government institutions at all levels. In developing countries, Nwaoburu, (2024) outlined that economic development at grassroots level is driven by certain objectives, including poverty reduction, employment generation, and socio-economic integration of rural communities into the broader national economy. Therefore, those elected in grassroot governance should seek to enhance the overall quality of life for rural dwellers through improved access to basic necessities such as food security, potable water, electricity, healthcare services, and education. As highlighted by Okonkwo & Nwachukwu, (2019), some local governments have successfully implemented policies and programs that have stimulated economic development at the grassroots level. For instance, investments in road networks, market development, and agricultural extension services have significantly contributed to the economic vibrancy of some rural communities. Additionally, local government initiatives in vocational training, skill acquisition, and entrepreneurship support have enhanced youth employment opportunities, reducing the high rate of unemployment in some regions. As stated by Ikonne, & Nwogwugwu, (2020) local governments is expected to contribute to economic development by creating an enabling environment for businesses to thrive, attracting investments, and facilitating job creation They also play a crucial role in promoting rural industrialization, enhancing agricultural productivity, and improving infrastructural facilities that support economic activities In contrast, these objectives has remain a blue print without reality as ural-urban disparities remain a significant challenge to achieving balanced economic development in Nigeria. Obi and Fatoki (2020) highlight the stark contrast between rural and urban areas in terms of infrastructure availability, resource allocation, human capital distribution, and employment opportunities. The widening economic gap has exacerbated rural poverty and triggered increased rural-to-urban migration, leading to labour shortages in agriculture and rising unemployment in urban centers. This rural exodus further compounds economic challenges, as many rural communities struggle to sustain their local economies due to the outflow of skilled and unskilled labor. On the other hand, the capacity of local governments to drive economic development is frequently hampered by nepotism, the improper management of resources, and a lack of necessary technical skills, which makes it difficult for them to effectively accomplish their missions. It was suggested by Osang, Afolabi, and Yakubu (2022) that the majority of local governments are doing a good job in terms of initiatives and programs that are designed to stimulate rural expansion. In spite of this, there is still a concern regarding the long-term viability of these initiatives. This is because frequent political upheavals sometimes disrupt current development projects, which in turn leads to discrepancies in the execution of policies. With that being said, Mbah (2021) pointed out that an efficient local government will be better compared to the state or federal governance. Not only will it be more equipped to combat the agonizing reality of the rising tide of grassroots poverty, but it will also be more effective able to stimulate collaborative initiatives and collaboration in order to oversee and mobilize the assistance of local citizenry in engaging with all the programs that may affect them while drafting appropriate policies to influence economic growth. 1.2 Statement of Problem Recently, the role of local government in economic development has been a subject of extensive debate due to the structural and operational challenges facing the system. Although Local governments in Nigeria, including Idemili South Local Government Area (LGA) of Anambra State, are constitutionally mandated to drive economic development at the grassroots level but the reality on the ground suggests that the local government has struggled to fulfill this role effectively. Osang, Afolabi & Yakubu (2022) pointed that problems such as inadequate infrastructure, poor revenue generation, and ineffective governance structures that hinder economic growth. The lack of well-maintained road networks, electricity supply, and access to essential services such as healthcare and education has stifled local economic activities, discouraging investment and business expansion. Bizarrely, Akinyemi, Eremie, & Kachi (2021) argued that a major factor influencing the success of local government in economic development is its financial capability. The primary sources of revenue for local governments in Nigeria include allocations from the Federation Account, internally generated revenue (IGR), and grants from donor agencies. However, many local governments have weak revenue-generation structures, relying almost entirely on federal allocations, which are often insufficient to meet their developmental needs. Umedum et’al, (2020) blamed this overreliance on federal allocations, coupled with poor internal revenue generation mechanisms, has further weakened the financial autonomy of the local government, making it difficult to implement sustainable economic development programs. Furthermore, the misappropriation of funds and lack of transparency in financial management have exacerbated the economic stagnation in many local communities. Research by Mbah (2021) identified that many local governments often struggle with corruption and misallocation of funds, which affects their ability to provide essential infrastructure and services. Similarly, Nosa-Ogbegie, Egobueze & Nwaoburu (2021) pointed out that local governments in Nigeria often lack the technical expertise and institutional capacity required to formulate and implement effective development policies. While these studies provide valuable insights into the challenges of local governance in Nigeria, they do not specifically address the unique socio-economic issues facing Idemili South LGA, such as the neglect of rural agricultural development, inadequate market facilities, and the lack of support for small and medium enterprises (SMEs). Existing studies have largely examined local governance from a broad national or state-level perspective (Nwaoburu, 2024) failing to capture the localized economic challenges and development constraints in Idemili South. Furthermore, while research has been conducted on rural development strategies, limited attention has been given to the effectiveness of local government policies in addressing unemployment, industrialization, and community-based development in the LGA. This study seeks to bridge this gap by providing a comprehensive analysis of the role of Idemili South LGA in fostering economic development, identifying key constraints, and recommending practical policy solutions. 1.3 Research Questions The research is guided by the following questions: i. What is the impact of Local Government on infrastructural development as a driver of economic growth in Idemili South? ii. What is the role of Local Government in employment generation and poverty reduction in Idemili South? iii. What is the influence of local government policies on human capital development in Idemili South? iv. What is the impact of local government policies and programs on small and medium enterprises (SMEs) and agricultural development in Idemili South LGA? v. What are the challenges hindering effective local government-driven economic development in Idemili South LGA? 1.4 Objectives of the study The main aim of this study is focused on local government and economic development in Idemili South LGA of Anambra State (2015 - 2018). Specifically, the study seeks to: i. Assess the impact of Local Government on infrastructural development as a driver of economic growth in Idemili South. ii. Examine the role of Local Government in employment generation and poverty reduction in Idemili South. iii. To evaluate the influence of local government policies on human capital development in Idemili South. iv. Explore the impact of local government policies and programs on small and medium enterprises (SMEs) and agricultural development in Idemili South LGA. v. To identify the challenges hindering effective local government-driven economic development in Idemili South LGA. 1.5 Significance of the Study Practically, this study is relevance for policymakers and council leadership, as it provides empirical insights into the effectiveness of local governance in driving economic development in Idemili South LGA. By highlighting key challenges such as inadequate infrastructure, low revenue generation, and weak institutional capacity, the findings will help policymakers formulate targeted strategies to enhance service delivery, improve budget allocations, and implement policies that foster local economic growth. Additionally, the study will offer recommendations on how council leadership can strengthen public-private partnerships, attract investment, and create sustainable job opportunities to boost economic activities within the LGA. For community members, the study provides a framework for holding local government authorities accountable for development initiatives that directly impact their livelihoods. By assessing the extent to which local policies support employment, business growth, and access to essential services, the research empowers citizens with knowledge that can drive advocacy and civic engagement. Moreover, the findings will serve as a guide for community-based organizations and stakeholders to collaborate with the local government in addressing economic challenges and fostering grassroots development. Empirically, this study contributes to the growing body of knowledge on local governance and economic development in Nigeria, particularly within the context of Idemili South LGA. While existing literature has broadly examined local government performance at the national or state level, this research provides localized evidence on the effectiveness of economic policies at the grassroots. The study’s findings will serve as a reference point for future academic inquiries, offering empirical data that can inform further research on decentralization, governance efficiency, and sustainable development in other LGAs across Nigeria. 1.6 Research Hypotheses Ho1: There is no significant impact of Local Government on infrastructural development as a driver of economic growth in Idemili South. Ho2: Local Government has no role in employment generation and poverty reduction in Idemili South. Ho3: There is no significant influence of local government policies on human capital development in Idemili South. 1.7 Scope of the Study This study focuses on local government and economic development in Idemili South Local Government Area (LGA) of Anambra State between 2015 and 2018. The content scope covers an in-depth examination of the role of local government in fostering economic development, with emphasis on key indicators such as infrastructural development, employment generation, revenue generation, human capital development, and public service delivery. The study will analyze the effectiveness of local government policies and programs in promoting sustainable economic growth and address challenges such as poor governance, inadequate funding, and policy implementation gaps. The geographical scope is restricted to Idemili South LGA, which consists of several communities including Ojoto, Alor, Nnobi, Awka-Etiti, Oba, and other neighboring towns. The study is delimited to the years 2015 to 2018, a period marked by various local government interventions and economic policies aimed at improving grassroots development in Anambra State. 1.8 Limitations of the Study Like every academic endeavor, the study has certain limitations of which one of them is the availability and reliability of data; as official records on economic development, revenue allocation, and project implementation may be incomplete, inconsistent, or difficult to access. Additionally, bureaucratic hurdles within the local government structure could restrict access to key stakeholders, making it challenging to obtain firsthand information from policymakers and council officials. Another concern is response bias, particularly among government officials, who may present responses that reflect political correctness rather than an objective evaluation of local government performance. The study is also geographically limited to Idemili South LGA, meaning its findings may not be entirely applicable to other LGAs in Anambra State or Nigeria. Moreover, the focus on the 2015–2018 period excludes more recent policy changes or economic developments that could provide deeper insights into the subject. Despite these constraints, the study will minimize their impact by using multiple data sources, including government documents, interviews, and academic literature, to ensure a well-rounded analysis.