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PROBLEMS OF LOCAL GOVERNMENT

CHAPTER ONE

1.0 INTRODUCTION

The Local Government is the third tier of government which is the tier of government closest to the citizens. Local Government occupies a strategic position in the administrative and developmental processes of every state, especially the rural areas. Since it is practically impossible for the central government to control every detail of the state’s functions, it is necessary that local governments are established to attend to the details of local administration, giving full weight to local preferences and prejudices on every issue. Thus, this study will focus on the problem of revenue generation in the Abeokuta-North Local Government area. Besides, it will articulate the introductory aspects of study which includes background, statement of the problem and the scope of the study.

1.1 Background of the Study

Bello-Imam(1986) asserts that “countries all over the world have appreciated the fact that it is cumbersome to administer and manage the affairs of the state by central government authority”. Consequently, they have established local government or structures of subsidiarity at the local levels. The United Nations in its conception of Local Government asserted that “it is a political division of a Nation (or in a federal system) which is constituted by law and has sustained control of local affairs, including powers to impose taxes or exact labour for prescribed purposes. The governing of such an entity is elected or otherwise locally selected” (Abubakar, 1993). According to Ojofeitimi (2000), the word “local” suggests that councils are meant for small communities and “government” means that they have certain attributes of government. Agbakogba and Ogbonna (2004) define the local government from a legal perspective. They see it as a “political administrative unit that is empowered by law to administer a specific locality”.

The practice of local government in Nigeria is traceable to the pre-colonial era which was characterised by local authorities managing the affairs of their localities and communities independently. The local authorities included the Obas, Emirs, Council of Elders and other such traditional arrangement. This was met with gradual transformation upon the emergence of the colonial period. Based on available record, the first local administration ordinance was the Native Administration Ordinance No 4 of 1916 which was designed to evolve from Nigeria’s old institutions, the best suited form of rule based on the people’s habit of thought, prestige and custom.(Bello-Imam 1990). While the colonial government managed the affairs of the Nigerian state at the centre, they introduced native authorities under the policy of association/indirect rule to see to local administrations at the grassroots. Macpherson constitution of 1946 initiated some remarkable changes; the regions introduced some reforms in their local administrations in the 1950s which aimed at enhancing performance.

From Independence and through the period prior to 1976 reforms, local government in Nigeria varied in form and structure from various regions of the country. Also, there was decline in the responsibilities and effectiveness of the existing local governments. This was not unconnected with and yet not limited to the heated political climate and excessive politicking with struggle for power and dominance. The regional governments were not left out as they took upon themselves most of the responsibilities of the local government through deliberate encroachment on their activities. It is in this sense that Aworawo and Akpan noted that before the introduction of the 1976 Local Government Reforms, the local governments in Nigeria were quite deficient in structure, size, staffing and finance- a development which inhibited their effectiveness as agents of national integration and grassroots development.

Local government administration in the country experienced fundamental changes in 1976. Local government reform created for the first time, a single-tier structure of local government in place of the different structure in the various states. The main focus of the 1976 reforms is the restructuring of the financial system and revenue of local government. Statutory allocation from the federation account and states revenue was made mandatory and was entrenched in the recommendations of the Aboyade revenue commissions of 1977.

With the entrenchment of 1976 reforms in to the 1999 Constitution, the efforts of reviving the local government system in the country proved quite productive as the constitution formally recognised the local government. Nonetheless, the potential ability of the 1976 reform to fully transform the local government system was cut short. Despite the constitutional force and unified system feature of local government with respect to 1976 reform, the constitutional procedure of voting in at least 75% of local council representatives was neglected and sole-administrators were appointed to manage the various existing local governments between 1979 and 1983. Awofeso in his book “Issues in Local Government Administration” revealed that by the time General Buhari ascended political power, local government authorities were begging for urgent attention. The local government existent in the country were financially handicapped and were virtually under-functioning. The new local government created between 1979 and 1983 were later dissolved and subsequently, a 21-man committee was set up under the chairmanship of Alhaji Ibrahim Dasuki by the Federal Military Government on the 28th of May, 1984 to look into the problems of the local governments which include; re-examining the existing structures, functions and financial resources available to local governments for the performance of those functions; look into the accounting/management of local government, including the standardization of various departments off the councils; propose how best to manage inter-governmental relations between federal, state and local governments and also between local governments and ministries for local governments, local service commissions among others.

The 1988 local government reform takes its bearing from the 1988 Civil Service Reform and since the inception of the fourth republic up till the present administration, local governments in Nigeria is continually faced with difficulties of allocation/revenue generation and administration of overall finance of the local governments. It is therefore necessary to address the challenges of revenue generation, local spending and overall management of the affairs of the government at the grassroots. This study will at such seek to address these issues and seek prospects to ensuring increasing stability in local government avenues for revenue generation.

1.2 Statement of Problem

In recent years, it has become increasingly difficult for local governments to fulfil their statutory obligations because of the costs involved. The general concern over the seemingly slow development of the rural areas in Nigeria has created a doubt as to the relevance of local governments in Nigeria whose primary function is to effect a representative government faster and closer to all the areas of state land. Inadequacy of funds for various developmental projects stands as the cause for these shortcomings despite the increasing revenue allocation from the federation account to the local governments

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