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Local government sources of finance - SS2 Government Past Questions and Answers - page 1

1

Which of the following is a source of finance for local government in Nigeria?

A

International Trade

B

Foreign Loans

C

Grants and Aid

correct option: c

Grants and Aid

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2

What is the primary source of finance for local government in Nigeria?

A

Internally Generated Revenue (IGR)

B

Statutory Allocation

C

Donations and Contributions

correct option: b

Statutory Allocation

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3

What is Internally Generated Revenue (IGR) in local government finance?

A

Money allocated to local government by the federal government

B

Money generated from taxes and other charges by the local government

C

Money borrowed by the local government from financial institutions

correct option: b

Money generated from taxes and other charges by the local government

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4

Which of the following is a challenge facing local government finance in Nigeria?

A

Abundant financial resources

B

Efficient financial management practices

C

 Corruption

correct option: c

 Corruption

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5

Who approves borrowing by local government in Nigeria?

A

Local Government Secretariat

B

Local Government Chairman/Chairperson

C

State House of Assembly and Debt Management Office (DMO)

correct option: c

State House of Assembly and Debt Management Office (DMO)

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6

What is the role of grants and aid in local government finance in Nigeria?

Grants and aid are a supplementary source of finance for local governments in Nigeria, provided by the federal and state governments, as well as international donor agencies, to support specific projects and programs

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7

What are some of the challenges facing the management and utilization of local government funds in Nigeria?

Some of the challenges include corruption, inadequate financial resources, poor financial management practices, and interference from state and federal governments.

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