EDUPEDIA247

CHAPTER ONE 1.0    INTRODUCTION 1.1    BACKGROUND TO THE STUDY Economic development is the back born of development in any society. Countries of the world are classified as developed, developing and under-developed based on their level of economic development. Governments formulate laws to regulate and control the conduct of economic activities of their countries in order to provide enabling environment for economic growth and development. In Nigeria, governments formulate policies and guidelines with a view to achieve economic growth and development. Central Bank is charged with the task of implementing the monetary policies of the government. Since its establishment in 1958, the objectives of the Central Bank of Nigeria have remained broadly the same, but the strategies for achieving these objectives have changed in consonance with the varying legal, institutional and macroeconomic environments. Over the years, the objective of monetary policy had been the attainment of internal and

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Local Government is seen as political subdivision of a nation, which is constituted by law and has substantial control of local affairs. It is regarded as the third tier of government in Nigeria, created for the purpose of grass-root development (UNO, 1961). In Nigeria the system of local government has over the years undergone series of changes, beginning from when the British colonial administration introduced the native authority system. In 1921 the basic structure of this native authority system features prominently throughout the country and continued until 1950s, the period Nigerians began to participate actively in legislative functions. (Hassan, 2002). The primary function of every local government is to improve the welfare of the entire grass-root people. In this regard, the effort of the local government is directed towards the improvement of the living standard of the people thereby achieving socio-economic development. T