Financial Autonomy: Panacea for Improved Service Delivery in Imo State Local Government System

Abstract

Local governments in Nigeria have been criticized for their low performance despite the huge revenue being injected into the system. This study offers an explanation for the remote causes of the failure of the local government system in Nigeria, using selected local governments across the three senatorial districts in Imo State as a frame of reference. The study argues that lack of financial autonomy, systemic corruption, and inadequate funding are the major hindrances crippling efforts to improve service delivery for the benefit of those residing in the localities. It further argues that while the internal sources of revenue available to local governments are not sufficient to provide essential services to rural dwellers, the relatively meaningful external sources are controlled by higher tiers (state and federal) of government in Nigeria. It uses mixed methods to generate and analyze data, and sources of data include available literature, responses from interviewees, and personal experience as a one-time active player in the local government system in Imo State. The examination of available literature and data analysis discovers that there is a lacuna in the 1999 Constitution of the Federal Republic of Nigeria, which the higher tiers cash in on to manipulate the crucial third-tier governments. It is, therefore, the conclusion of this study that improvement in service delivery can be tremendously achieved when the third tier enjoys financial autonomy commensurate with the services it renders to the local communities.