The Joint Account System in Nigeria : Problems and Prospects

Abstract

The joint account system is the focus of this paper. It is expediently the focal point of the paper due mainly to the precarious and prater-natural implementation of the well formulated financial policy. Though the joint account system as a financial policy of the local government was given birth to in 1979 constitution following the nation-wide local government reforms of 1976. The system was subsequently abolished in 1989 by the General Ibrahim Babangida administration due to its wrong implementation by the state governments. It later in 1999 following the restoration of civil rule in Nigeria finds its way back into the constitution. The implementation became problematic as various hawks i.e. state Governments turned it into money making venture. This attitude, therefore, became pathological as local government productivity and performance lowered tremendously. The paper, however, considers the problematic aspects of the joint account system and its prospects and finds out that the joint account was made though to forestall possible manipulation, misappropriation and security of fund for the local government, the state governments had turned it into a goldmine for themselves through various illegal deductions, diversion and delay of the statutory allocation of the councils. The paper concludes by maintaining that the good intention of the formulators of the joint account has been defeated due to wrong implementation by the state governments. However, the paper made some plausible recommendations which if judiciously adhered to would check the so many incursions by the state government into council’s allocation.