Abstract
The relationship between state and local governments in Nigeria as established by the 1999 Constitution of the Federal Republic of Nigeria (as amended) makes both governments as tool for urban and rural development in Nigeria. However, it appears to be one of the challenging aspects of fiscal arrangement in providing social services to the citizenry within their jurisdiction. This study therefore analysed current trend of principles in local governments fiscal relations in the delivery of social service in Southwestern Nigeria. Data were obtained from both primary and secondary sources. This study concluded that financial relationship between the state and local governments enhances the smooth running of local governments in Nigeria has identified as a cardinal component of current trends in local government finance and Joint Allocation Account Committee (JAAC) also assists in equitable distribution of revenue to local governments without prejudice in Southwestern Nigeria. Keywords: Finance; Fiscal Relationship; Good Governance; Local Government; State Government; Intergovernmental Relations DOI: 10.7176/PPAR/10-8-06 Publication date: August 31 st 2020
Highlights
Arising from the control of local governments by the ‘superior’ tiers of government are the hindrances in the poor performance of the local governments
A critical review of these findings shows that the relationship between the state and local government was not cordial enough to promote effective service delivery at the local level in Nigeria
As observed in the findings that 40 (55.2%) of the respondents agreed with the claim that Joint Allocation Account Committee (JAAC) assists in equitable distribution of revenue to local governments without prejudice to those who did not support the claim
Summary
Arising from the control of local governments by the ‘superior’ tiers of government are the hindrances in the poor performance of the local governments. In 2009, the prospects of intergovernmental relations got a boost in the provision of social services when the federal government of Nigeria went into partnership with the state and local governments to ensure improved electricity generation in the country. To this end, federal, state and local governments agreed to release certain percentage of their share of allocation from the Excess Crude Oil account for the attainment of the federal government–initiated improved power generation in the country (Adeniji, 2013). In a separated intergovernmental relations model, the governments are independent within constitutional limitations of the federal government and the local governments are subordinated to the states Even though this fundamental and philosophical question may not be answered by this model but at least it has helped frame a significant question. These characteristics include: a) A set of objectives which the entity seeks to achieve and without which it cannot exist; b) A hierarchical inter dependent units (sub-systems) among which the systems objectives are divided for implementation; c) Specificity of subsystems’ roles, meaning that each sub-system has a defined and specialized role in the realization of the total purposes of the unitary whole and that sub-systems roles are mutually re-inforcing; d) An input-transforming technology which refers to the processes and techniques by which resource input extracted from within and outside of the system are transformed into outputs which themselves have implications for systems persistence and effectiveness through feedback mechanism; e) A boundary which excluded the plethora of other systems and defined the threshold of transaction among the universe of system; and f) An environment – meaning the larger context in which the system is situated a context with which it engages in mutual transactions through the agency of inputs and outputs
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