Fiscal Federalism, Revenue Allocation and Local Governance in Nigeria

Abstract

Fiscal federalism, resource allocation and local governance in Nigeria was examined. The argument was that the poor conditions of local governments stem from unnecessary control of the third tier government by state governments as evidenced in Its control of federal allocations to local governments through the State/Local Governments Joint Account and non-remittance of the statutory 10% of states internally generated revenue to local governments. This attitude of state governments is political and selfish, considering that even viable states such as Lagos and Kano are equally victims. This, the paper observed, has contributed significantly to inability of local governments to provide effective service delivery to the rural people. The paper recommended away forward among which were granting of full financial autonomy to local governments and widening the scope of revenue sources of the third tier governments. The paper concluded that when local governments are granted full financial autonomy, grassroots democracy, good governance and economic independence will be enhanced and the local people will have access to their needs.