The Investment Decision process in the Enugu Local Government System; An Assessment

Abstract

This research work assesses the investment decision process in the Enugu Local Government System. Due to constraints of time and money, we limited the study to five (5) Local Governments in Enugu State. The main objective of this study is to know if there is no correlation between the Local Government political policies in Enugu State and their investment decisions. The amount of funds disposable by the Local Government System has no impact on the level of investments. We specifically wanted to find out whether or not the Local Government's investment decision process is faulty. Related literature was reviewed on the topic of study. Data were also obtained during the study from both primary and secondary sources. The primary sources involved personal oral interviews and questionnaire, while secondary data were mainly obtained from text books, periodicals, Newspapers and magazines. In the analysis of data, the data collected from the questionnaire were analysed and used to test some formulated hypothesis using the Chi-Square hypothesis model. Based on the result of the analysis of data from the questionnaire distributed to the respondents, it was discovered: That the National Economic Council takes the investment decision for Local Governments in Enugu State and Nigeria. That investment decision is heavily influenced by political policies; that poor general economic activities in the country affect the investment decision of the Local Governments in Enugu State. That lack of funds affects the investment decision of Local governments in Enugu State. That the needs of the people in the communities are not taken into account in investment decisions by Local Government Councils in Enugu State. That where decision is taken for investment to take place, it is in social services that Local Governments mostly embark on. That when decision to invest has been taken, contractors implement the project instead of the Local Government Council Staff That when projects are implemented by contractors, incompetent contractor are chosen instead of registered and qualified ones. The researcher, based on their findings, concluded that investment decision process in the Local Governments of Enugu State is faulty. Hence, government should quickly address the situation by applying the recommendations made in this research work. If Local Government Councils, as a third tier of government in Nigeria, should be given free hand to operate, I promise they will do very well.