Influence of the State and Local Government Joint Account system on public service delivery in Nigeria: a case study of Awgu Local Government Council

Abstract

The State and Local Government Joint Account (SLGJA) was introduced in the 1999 Constitution of the Federal Republic of Nigeria with the basic aim of pooling all the financial allocations due to the various local government councils from the Federation Account, for onward distribution by the states to the local councils. This is to ensure that the state governments effectively control and monitor expenditure by the executives of the local government councils and that the funds are properly utilized for purposes of effective grassroots service delivery. Using primary and secondary methods of data collection with a focus on content and descriptive analysis, this paper discusses the effect of the joint account system on service delivery at Awgu Local Government Area from 2012 to 2018. It explores the impact of this fiscal relationship on the administrative autonomy of the council and the fiscal capacity to deliver public services to the rural communities in the area. The findings show that this relationship negatively affects the fiscal capacity of the council in the period under review to deliver effective public services to the various communities that make up the area. This is due to cases of illegal deductions, withholding of council funds and refusal to the remit statutory 10% of total revenue of states to local councils. The study recommends a constitutional review to strengthen the local government system to effectively function as the third tier of government in line with the Guidelines for 1976 Local Government Reforms.

To cite: Okafor, Ch. & Ijeoma, E.O.C. (2019). Influence of the State and Local Government Joint Account system on public service delivery in Nigeria: a case study of Awgu Local Government Council. Journal of Management & Administration (2019/2), 93–111. https://hdl.handle.net/10520/EJC-19c1ecfe03