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| State-Local Government Joint Account, Fiscal Autonomy Deficit of Local Governments and Grassroots Development in Nigeria: A Critical Appraisal |
Mrs. Ifeoma Okafor C.
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Abstract:
Local government systems in Nigeria are constitutionally recognized as the third tier of government, with the capacity to stimulate development at the grassroots level. Therefore, the fiscal autonomy of local government councils is crucial for effective and efficient service delivery at the grassroots. Regrettably, this has not been the case in Nigeria, due to the management of the State-Local Government Joint Account, which has made local governments appendages of state governments. Extant literature is awash with several valuable scholarly contributions on the state-local government joint account and grassroots development in Nigeria. While these analyses are appropriate, it was however observed that previous studies did not establish the nexus between the joint account, fiscal autonomy deficit of local governments and developmental inefficiency at the grassroots in Nigeria. The paper appraised critically, the relationship between the state-local government joint account, fiscal autonomy deficit of local governments and grassroots development in Nigeria. The findings of the study revealed that the joint account created lopsided state-local government relations, and encouraged sharp practices like illegal deduction of local government allocations; unnecessary delay, withholding and diversion of local governments' allocations, etc. by state governments. Fiscal autonomy deficit of local governments impedes grassroots development in Nigeria. The paper recommended for the abolishing of the joint account system in Nigeria; the inclusion of a clear-cut constitutional provision for the enhancement of inter-governmental relations; and that advocacy for the direct allocation of local governments' funds from the federation account should be backed up by the law of the land.
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