QUANTITATIVE AND QUALITATIVE STUDIES ON STATE AND LOCAL GOVERNMENTS FISCAL RELATIONS IN NIGERIA: EXPERIENCE AND LESSONS FROM SOUTHWESTERN NIGERIA

Abstract

Joint account is one of the cardinal relationships between state and local governments in Nigeria as established by the 1999 Constitution of the Federal Republic of Nigeria as amended. However, it appears to be one of the challenging aspects of fiscal arrangement for providing social services to the citizenry within their jurisdiction. This study therefore analysed challenges confronting state and local governments fiscal relationship in the delivery of developmental service in Southwestern Nigeria. Data were obtained from both primary and secondary sources. Data gathered were analyzed using descriptive and content analysis. The study revealed that principles guiding the operations of state joint local government accounts were needed to be strictly followed in allocating revenue to the local governments in order to ensure effective delivery of service at the grassroots. This study concluded that statutory provision for the payment of local governments share into Joint Account (86.2%), unnecessary bureaucratic bottlenecks (79.3%), encroachment on local government funds (86.2%), and state government interference (78.6%) were identified leading challenges facing state and local government fiscal relationship on service delivery in Southwestern Nigeria.

Keywords: Finance; Fiscal Relationship; Good Governance; Local Government; State Government; State Joint Local Government Accounts