ABU Journal, Department Of Public Administration
Volume No: 1|
Page No: 39
Title: THE OVER-DEPENDENCE OF LOCAL GOVERNMENTS ON STATUTORY ALLOCATIONS IN NIGERIA AND ITS IMPACT ON DEVELOPMENT
SILAS FELIX ANYIO
DEPARTMENT OF PUBLIC ADMINISTRATION ABU, ZARIA, NIGERIA
The Nigerian fiscal system and the country’s fiscal federalism are defined largely, in the Nigerian constitution of 1999, (Constitution of the Federal Republic of Nigeria 1999). This prescribes a three tier of government with local governments at the bottom saddled with the responsibility of pioneering development in their various localities. This, of course, cannot be done without adequate sources of finance. The fact remains that local governments’ revenue generating capacity in the country is less than 10% annually, as observed by scholars. This has constantly made local governments depend so much on statutory allocations from the federation account as enunciated in the 1976 Local Government Reforms and also, as prescribed in the 1999 constitution. This paper attempts to examine local governments over dependence on statutory allocations in Nigeria and its impact on development. The paper employs largely documentary sources and personal observation for data collection. The paper concludes that local government must harness new sources of revenue besides existing ones, if they must live up to their expectation
Adequate funds no doubt will put local government in sound financial footings to enable them accomplish their statutory responsibilities to the people. This is because the credibility of the country’s local government system is presently at its lowest ebb particularly with regard to the ability of local government officials to shoulder trust. We must reiterate, here, that with the proliferation of these bodies, exploring new financial sources should not be an end to local government problems but a means to an end.