Local Government Finance and Performance in Nigeria: A Critical Assessment

Abstract

The issue of local government finance performance has become a critical aspect of intergovernmental concerns. The Constitution of the Federal Republic of Nigeria has placed local government as the third-tier level of government which seemingly exists as an autonomous entity, possessing some degree of freedom and independence. Yet, the ability to perform its constitutionally required functions is deserted by the problem of insufficient revenue. In Nigeria, several factors have contributed to the financial setback encountered by most local governments and these include overdependence on the shares of allocations from the state and federal governments which is hitherto withheld by the same federal and state governments; lack of financial autonomy; the inability of the local governments to explore or generate the required internal revenue, among others. The purpose of this study is to examine the local government finance and performance in Nigeria, lack of financial autonomy in the functions of local government in Nigeria.