The Implications of Intergovernmental Fiscal Relations on the Financial Autonomy of Local Governments in Admawa State, Nigeria
- November 11, 2020
- Posted by: RSIS Team
- Categories: IJRISS, Public Administration
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue X, October 2020 | ISSN 2454–6186
Dr. Lucky Benson1, Usman Isa2
1Department of Political Science and Administration, Adamawa State University, Mubi, Nigeria
2Department of Public Administration Adamawa State Polytechnic, Yola, Nigeria
ABSTRACT:- The 1999 Constitution of Nigeria as amended provides that every State in Nigeria shall create and maintain a special account where Local Governments funds from Federation account are deposited, including the 10% State’s internally generated revenue. The State is expected to share the revenue among the various Local Governments within her domain for effective service delivery to the grassroots people. This paper sought to evoke information on the effect of State – Local Government Joint Account on the financial autonomy of Local Government Councils in Adamawa State. Data for the study were obtained from both Primary and secondary sources. The study found that the State-Local Government Joint Account operations hinder effective service delivery in Adamawa State. The Fund appropriated to Local Government Councils in Adamawa State from the Federation Account was mismanaged by the State Government, through several means which includes illegal deductions, diversion and undue engagement of Local Governments into partnership projects. The study recommended that, in order to free Local Governments from such exploitation of the Joint Account system, the constitution has to be reviewed to enable Local Governments access their allocation directly from the Federation account.
Keywords: Financial Relations, Joint Account, Local Government, Service DeDeliver.
Introduction
The State – Local Government joint account system as a financial instrument in Nigeria emerged through the 1979 constitution. The 1999 constitution of Federal Republic of Nigeria also recognized the existence of this intergovernmental fiscal relations among the three tiers of government. The establishment of this special account by the constitution was to enhance rapid development at the grassroots as well as prompt provision of adequate social service and ensuring effective supervision of the distribution and allocation of revenue to Local Governments from the Federation account. The constitution stipulated the creation of special State- Local joint account and entrust State with powers to distribute revenue due to Local Government from the Federation account and their own (States) 10% internal generated revenue. This arrangement was made to ensure effective supervision of spending of the funds for service delivery across Local Governments.
