The Constitutional and Political Implications of Operating State Joint Local Government Account in a Federation: An Assessment of Nigeria’s Experience in the Fourth Republic

Abstract

The study assesses the constitutional and political implications of operating a State Joint Local Government Account in a federal system. The objective of the study is to unravel the intrigues and politics behind the continuous operation of State Joint Local Government account despite repeated calls for direct allocation to local government councils. The fiscal federalism model was adopted as a theoretical underpinning since the issue under consideration bothers on intergovernmental fiscal relations between the State and local governments in a federal arrangement. Methodologically, secondary method of data collection was adopted through content analysis of the 1999 constitution of the Federal Republic of Nigeria, 1976 and 1988 local government reforms guidelines, 2014 Constitutional Conference Report and appropriation bills signed into laws before arriving at a logical conclusion. Findings of the study revealed that the constitutional provision in section 162(6) of 1999 Constitution of the Federal Republic of Nigeria and the implementation of Ayida Panel Report of 1994 have made it difficult for direct allocation from the federation account to local council to be unrealistic. Hence, the study recommends the introduction of direct allocation to local government accounts, increase in the tax raising powers of local government, regular audit of local government accounts, regular payment of 10% internally generated revenue at the state level to local government and the amendment of section 162 (5&6) of the 1999 constitution which made provision for operation of Joint State Local Government Account.