Empirical Evidence of Local Government Finance on Regional Building in Southwestern Nigeria

Abstract

The relationship between state and local governments in Nigeria as established by the 1999 Constitution of the Federal Republic of Nigeria (as amended) makes both governments as tool for urban and rural development in Nigeria. However, it appears to be one of the challenging aspects of fiscal arrangement in providing social services to the citizenry within their jurisdiction. This study therefore analysed current trend of principles in local governments fiscal relations in the delivery of social service in Southwestern Nigeria. Data were obtained from both primary and secondary sources. This study concluded that financial relationship between the state and local governments enhances the smooth running of local governments in Nigeria has identified as a cardinal component of current trends in local government finance and Joint Allocation Account Committee (JAAC) also assists in equitable distribution of revenue to local governments without prejudice in Southwestern Nigeria.

Keywords: Finance; Fiscal Relationship; Good Governance; Local Government; State Government; Intergovernmental Relations

DOI: 10.7176/PPAR/10-8-06

Publication date:August 31^st 2020