Abstract
The issue of revenue allocation remains very volatile and constitutes a major source of political and governmental tension in Nigeria. This paper examines the revenue allocation system in Nigeria vis-a-vis the functional and institutional relevance of local government in national development. The paper strongly advocates for a direct revenue allocation to Nigerian local governments; it also identifies roles/functions capable of playing by local governments in national development; and showcases the operational and tactical roles of local government in enhancing national development. Typology of this research work is basically descriptive. Its research method is qualitative. Data for the study came primarily from secondary sources such as articles, textbooks, lecture notes, journals, newspapers and academic research projects. The contents of numerous data gathered are fittingly analyzed. This paper reveals the following facts: grassroots’ development is a forerunner of national development; basic social services are mostly needed at grassroots level; local governments afford citizens the opportunities for political participation, political socialization and political education; and local governments are capable of solving the perpetual problems of rural-urban migration, rural transformation and development. This paper assertively concludes that direct allocation of funds to local governments will facilitate promotion of grassroots’ democracy, promotion of economic development, good governance, political accountability, agricultural growth and development, transparency, local freedom, accessibility to local needs, responsiveness to local wishes and initiatives, rural transformation and overall national development. Key words: National Development, Nigerian Local Government, social services.
Highlights
Revenue allocation is an inherent trait of federations all over the world
Local government has the same status with other levels of government: it has the power to initiate, direct, determine and implement projects at grassroots level; it is a partner in national development
Direct revenue allocation to Nigerian local governments is supported by the principle of needs (Adeyemo 2010) which in its analysis acknowledges that various segments of the country will be at different stages of development, it posits that even development, national integration and social justice can be achieved by allocating resources to different tiers of government independently so as to cater for their dissimilar needs
Summary
Revenue allocation is an inherent trait of federations all over the world. Like most federal systems, Nigeria has a revenue distribution system in which the national government shares revenues with state and local governments (Adedotun, 1991). These powers should give the councils substantial control over local affairs as well as staff, institutional and financial powers to initiate and direct the provision of services and to determine and implement projects so as to complement the activities of the state and federal governments in their areas...” (Local Government Reform, 1976) From this above definition, local government has the same status with other levels of government: it has the power to initiate, direct, determine and implement projects at grassroots level; it is a partner in national development. For local governments to perform their functions which propel national development, the need for proper funding which can be better accomplished by ensuring that the allocations from the federal pursue come to local governments directly without illegitimate encroachment of the state governments. Local governments can effectively monitor their areas, detect hide-outs of hoodlums, gather political and social intelligences, and trace evil-perpetrators through their compound and lineage names
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