Decentralisation Nigeria

7/30/2019 Decentralisation Nigeria

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NIGERIA Capital: Abuja

Area: 923,770km2Population: 131 530 000 inhabtsDensity: 142,4 ctzns/km

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Average growth: 2,2 %

FOCUSThe 1999 Constitution remains the yardstick through which the functions of the localgovernments are measured. In 2003 a Technical Committee was set up on the Review ofLocal Government Councils. However, its report has not been implemented. The localgovernments are still so limited in their administrative and technical capacity that they wouldstill need the assistance of the state government. The reforms, although highly publicised,remain very elusive, states have often resorted to law suit to obtain the implementation ofcertain policies. The passage into law in 2005 by the National Assembly of the "Bill for an actto prescribe the basis for the allocation of revenue standing to the credit of local government

councils and Area Councils in the Federal account and for other matters connected there-with" and the establishment of the" Economic and Financial Crime Commissioned (EFCC)"and the "Independent Corrupt Practices and other related Offences Commission (ICPC)" bythe Federal Government underscores government commitment towards decentralization andfight against corruption and corrupt practices. The EFCC and ICPC have the mandate tomonitor disbursement to the local councils and to act on any reported case of abuse by thestate government. These efforts by the Federal Government have drastically reducedinstances of state illegal tampering with council funds. The two commissions are receivingadequate support and backing from the Federal Government. However, the implementationis still restricted. Delta states local government law for example has provided for completefinancial autonomy of local governments where contracts are no longer referred to any organor functionary of the State Government for approval provided the project had received theprior approval of the Legislative Arm of the Local Government. It is highly recommended thatother states emulate this pattern.


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GENERAL INDICATORS

Human Development

HDI 0,466

Total GDP (millions $US) 159 750

GDP/per capita (units of $ US) 1 120

Annual Growth 3,5%

Life Expectancy 43,3

Literacy (%) Men 74,4

Women 59,4

Access Internet/1000 ctzn) 6,08

Decentralization

Communalized Population 100%

Average Communal area

Urban Population 46,7

Number and Tiers of local governments State 36

Metropolitan

Municipality

(Cat. A).

Local

Municipality

(Cat. B)

774

I- The decentralisation policy

Evaluation:The new constitution has weakened the solid roots of the Local governance system. LGs statutesare not the same anymore throughout the country. The report ordered by the federal governmenton the issue is yet to be implemented.

Indicators:

1.1. Establishment of the LG system : 1.2. Consistency of the legal framework: 1.3. Consistency of administrative arrangements:

The establishment of the Local governance systemThe functions, structure, composition andfinance of local government aredetermined by state law within theparameters set forth in Section 7 and thefourth Schedule of the 1999 Constitution.Whilst there are some variations fromState to state, the majority of the localgovernments have been established on

the presidential model, that is thechairman of the local government area iselected by voters in the local governmentarea and governs with the assistance ofcommissioners who he appoints to headlocal government departments.However, local government autonomy isrestricted by higher levels of governmentnot only by statute but also by limitationson their discretion in making and executingtheir budgets and in control of theirpersonnel in the form of guidelines having

the force of law periodically issued bystate governments as policy.

Decentralisation to locally electedgovernments was introduced as a meansto improve incentives of public providersfor service delivery to poor people. Yet,practical evidence on how decentralisationinitiatives work in practice is lagging.There has been some on going agitationsfor the creation of more local

governments, the National Assembly is stillresisting this tendency and the number ofLocal Government Areas may not behigher than the current number. Moreso,these agitations are seen merely as anavenue to appropriate funds. Recently,Lagos State increased of local governmentareas from 20 to 57 attracted a stiffopposition from the Federal Government,which withheld the state monetaryallocation. The federal government insiststhat Lagos should revert to its former 20

local governments to qualify for the fundssince the National Assembly has not


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approved the additional 37 localgovernments, while Lagos State insiststhat it is still within the law, since it is notasking for new funds for the additional

Local Governments. In order top haveaccess to its funds (albeit partly) the LagosState has now reverted to its initial 20 localgovernments.

Legal framework for decentralisation

The 1999 constitution incorporated certainimportant achievements ofdecentralization. Section 7 provides interalia that the Government of every stateshall ensure the existence of localgovernment councils under a law whichprovides the establishment, structure,composition, finance and function of suchcouncils.Although the Constitution clearlyguarantees that local governments shouldbe democratically elected, it places them

under the control of the state government.This arises from the constitutionality-recognised power of the state governmentto make laws with respect to localgovernment councils.The power of a state government inrespect of local government councils onthe other hand also is limited in three waysnamely:the Constitution directly creates the localgovernmentthe Constitution specifies theirestablishment and mandatorily confercertain functions on themno laws for the creation of any more localgovernment can be effected without

complying with the strict constitutionalprovisions.The combined forces of these factorsmake local autonomy elastic but itselasticity depends on the government ofthe day. It is also clear that an overreliance-The Native Authority Ordinance, 1916,-The Native Authority Ordinance, 1933,-The Local Government Law, 1950,- The Local Government Law, 1952,-The Native Authority Law, 1954,

-Guidelines for Local Government Reform,1976,-The Revenue Allocation Act, 1981,-The Local Government (BasicConstitutional and Transitional ProvisionsAct, 1989-The Local Government (BasicConstitutional and Transitional Provisions(Amendment No. 23) Decree, 1991,-The Local Government (Basic andTransitional Provisions) Decree, 1998-The Federal Constitution, 1999-Electoral Act 2001-Electoral Act 2002-Monitoring of Revenue Allocation to LocalGovernments Act 2005

The Administrative OrganisationGovernment in Nigeria is divided into threetiersthe federal government, thegovernments of each of the countrysthirty-six states, and local governmentcouncils that govern Nigerias 774 LocalGovernment Areas. The Nigerian

Constitution provides for all three levels ofgovernment should be autonomous and tobe run by popularly electedadministrations, and lists in detail theexclusive and concurrent powers of each.The local government system adoptedvaries from state to state.

It should be appreciated that theadministration of Local government councilinvolves the making of various decisionson a regular basis; such decisions couldbe classified in various ways, legislative,administrative, judicial, quasi-judicial.

The notion of inter-community relations orpartnership in order to improve the localcommunities seems strange to them ratherwhat obtain is disputes of boundaries insome states and inter-communal clashes.On the other hand there are co-operationswith their foreign partners to promote thedevelopment of the local government.

Table 1: Administrative and territorial organization

States No. of LGs. States No. of LGs States No. of LGs. States No. of LGs.

Abia 17 Kano 44 Gombe 11 Oyo 32

Abuja FCT 6 Katsina 34 Imo 27 Plateau 17Adamawa 20 Kebbi 22 Jigawa 27 Rivers 22


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Akwa Ibom 31 Kogi 20 Kaduna 23 Sokoto 22

Anambra 21 Kwara 16 Ebonyi 12 Taraba 15

Bauchii 20 Lagos 20 Edo 18 Yobe 17

Bayelsa 9 Nassarawa 13 Ekiti 15 Zamfara 14

Benue 22 Niger 25 Enugu 17 Ondo 18

Borno 27 Ogun 19 Delta 25 Osun 28Cross River 18

II- The implementation strategy

Evaluation:The Commission create by the Federal government on the issues of LGs autonomy has finalizedits report. Its recommendations have not yet been considered. However, through a cleardistribution of competencies among the three levels of governance, LGS have full autonomy inmanaging local affairs. Technical supports are provided to LGs by federal and state governmentsinstitutions.

Indicators:

2.1. Implementation planning : 2.2. Transfer of competencies and sector-based policies:2.3. Structuring of decentralization and spatial planning: 2.4. Technical support and M&E of the process:

The decentralisation implementation planningThe Constitution intended the autonomy ofLocal Government and made provision forthe finances of local government.Unfortunately only the FederalGovernment has made such allocations tolocal governments. The consequence ofthis was that local governments becamemore reliant on the Federal Governmentwhereas they are creations of the StateGovernment. This has resulted inintergovernmental conflict between thefederal and the state governments. Ratherthan work for their autonomy, localgovernments have sometimes sought

refuge under the Federal Government inopposition to the State Governments.The approach of several governorsregarding the location of various projectssuch as roads, electricity service, hospitalrehabilitation etc. the objective being tospread the development so that everylocal government area is the location of atleast one capital project. Some localgovernment chairmen have shown quitesome initiative in improving the lot of theircommunity as much as they are permittedso to do.

Institutions in charge of technical support and monitoringStructural changes have taken place toensure that local governments enjoy a

reasonable measure of autonomy. In chiefis the abolition of the ministry of LocalGovernment in 1988 to allow the localgovernments make their own policies andtake responsibility for local development,so the Ministry of Local GovernmentAffairs was established in the Governorsoffice to coordinate state-local political andadministrative relationships. At theNational level, there is the Department ofLocal Government Affairs in the State andLocal Government Affairs Office thatcoordinates federal-state-localrelationship.

The Local Government personnelmanagement is a function between a

central personnel agency of the states (theLocal Government Service Commission)and the local governments. Thiscommission is in charge of appointing,deploying, transferring, promoting anddiscipline of senior local government staff.Traditional rulers in a local governmentsconstitute Traditional or Emirate Council toadvise on local laws and customs and toassist with tax collection where that is thetradition.Ministry of Intergovernmental Affairs andSpecial Duties was established also to


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conduct intergovernmental relations through the Presidency.

Table 2: Transfer of competencies and sector based policies

Service Delivering Authority

Federal States LGAs

GENERAL ADMINISTRATION

Police Fire protection Civil protection Criminal justice Civil justice Civil status register Statistical office Electoral register

EDUCATION

Pre-school

Primary

Secondary

Vocational and technical Higher education

Adult education

SOCIAL WELFARE

Kindergarten and nursery

Family welfare services

Welfare homes Social security

PUBLIC HEALTH

Primary care

Hospitals

Health protection

HOUSING AND TOWN PLANNING

Housing Town planning Regional planning

TRANSPORT

Roads Transport Urban roads Urban rail Ports Airports

ENVIRONMENT AND PUBLIC SANITATIONWater and sanitation Refuse collection and disposal Cemeteries and crematoria

Slaughter-houses

Environmental protection

Consumer protection

CULTURE LEISURE AND SPORTS

Theatre and concerts Museums and libraries

Parks and open space

Sports and leisure

Religious facilities UTILITIES


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Gas services

District heating

Water supply

Electricity

ECONOMIC

Agriculture, forests and fisheries

Economic promotion Trade and industry tourism

III- The local government structures and management

Evaluation:Because of an old administrative tradition, the local governments were functioning very regularlyuntil their suspension in 2002 following the deferment of the local elections Since the lastelections, Local councils and Executive are in place and hold regular sessions in line with theirlegal agendas. The technical and administrative staffs are of good quality with some concernshowever in the remote areas. The new constitution has reinforced state government prerogativesover LGs and this has resulted in reducing their autonomy.

Indicators:

3.1. Functioning of the political organs :3.2. Quality of the technical organs: 3.3. The level of the State control:

The political organsThe executive is vested in the chairman,vice-chairman, supervisor or supervisorycouncillors, and the whole machinery of

local government bureaucracy. Thelegislative functions are meant to beperformed by the councillors, whorepresent the wards which make up theLocal Government Area. The judiciary onthe other hand is streamlined with thefederal and state and local governmentcan avail itself of the judicial processavailable to it. The local governmentelections were held in March 2004 and thenew local government chairmen sworn in

soon afterwards and resumed theirservices.It is important to note that at the state

level, there is no significant policydifference between councillors of differentpolitical parties in the local governmentareas. Some council in the localgovernment areas include members of theopposition, but party is not a definingattribute of political conflict. Localgovernment chairmen do not regard partyas important and seek to spreaddevelopment across the area embraced bythe local government authority providedcouncillors cooperate with them.

The technical organsThe council is further divided into technicaldepartments whose heads arethemselves, elected. Two other memberselected under the same conditions form,with the Chairman and the heads of thetechnical departments, the Staff of theadministration and finances. There is no

municipal executive in the form of amunicipality embodied in the mayor forrunning the daily affairs of the community.Rather, there is a team comprising theChairman, the heads of the technicaldepartments and two other members.

Control of Local government by the State governmentIt has often been said that the greatestchampion of local governments in Nigeriahas been the military which supported theelected local government and allocated a

greater share of the Federation Account tolocal government. Although localgovernments have been given specificfunctions and responsibilities, these


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services are carried out under statesupervision, and consist mainly of theconstruction and rehabilitation of buildingsthat house these services. Funding ofthese capital works are supposed to beallocated from capital budgets. Local

governments have very little latitude withrespect to either policy-making orbudgeting which may further explain theuninspired performance of many localgovernment chairmen.

Structures and function of the municipal servicesAlthough local government participate inthe provision of primary healthcare andeducation, they are highly constrained bystate and federal policy. One of the mostcontentious issues is the provision ofprimary education. The deduction atsource from the federation accountallocations to Local governments for thepayment of primary school teacherssalaries is a trend that has been

maintained since the Abacha regime andthe clamour for it to be stopped seems tofall on deaf ears. This has created adisincentive for local governments toexpand primary education notwithstandingthe federal policy to move towardsuniversal Basic Education. The result issome states is a standoff between the

state primary education board whichrecruits and posts teachers and the LGAswhich are unwilling to construct additionalclassrooms or schools, because they wishto limit the number of teachers whosesalaries they must cover.

Within the realms of generaladministration, education, social welfare,public health, transportation, utilities,

economic matters and other issues,constitutional and legislative clarity mustbe used to assign delivering authorityeither exclusively or concurrently to thevarious tiers of government. That willpermit better financial revenue allocationamong these tiers.

IV- The Human Ressources

Evaluation:

The trend nowadays is that local political leadership surround themselves with highly qualifiedsstaff they can rely on. However, the trend is not effective in the remote LGs which lack means toattract qualified HR.

Indicators:

4.1. The qualifications of local agents : 4.2. The transfer of the human resources:4.3. The LG contracting power:

The existence and qualification level of local agentsThe constitution requires that all localgovernment staff must be educated up toat least an ordinary national diploma

certificate level.It does appear however that few localgovernments engage professionally

qualified personnel to manage the auditdepartment their professionalism is oftensuppressed by the culture of these local

governments which present a weakaccounting system.

Local human resourcesThe shift to greater responsibilities for thecommunities and private sector, withgovernment acting as a facilitator, willrequire a concerted human resourcesdevelopment effort. While most of thefinancing will go towards capitalexpenditures most of the effort will go

towards training and management.

ALGON is engaged in manpowerdevelopment and has organised severalprogrammes in collaboration withconsultants and other relevant institutionssuch as self-sufficiency in Skills acquisitionand creativity programme. It has alsoorganised workshops and seminars for

functionaries of the local government.The local government contracting power


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The local governments are vested with thepower of entering into contractualagreements for their construction andtransportation and infrastructure services.External consultants are often engagedalthough consultancy services togovernment have been abused over the

years. Most consultants are engaged withcautionary measures in place.All construction carried out by the privatesector for local governments are said to beawarded through competitive building onat least a state-wide basis, following pre-qualification to identify contractors knownto do high-quality, professional work.

V- The Local democracy

Evaluation:The preferment of elections in 2002 and the subsequent suspension of elected Local councilsraised concerns about the sustainability of the local democracy. The last election in 2004 is a signthat has to be confirmed later. The instability of the system has frozen people motivation toparticipate in local affairs with the consequence of reducing accountability and transparency in localgovernment management. The Municipal movement is quite strong as NALAG is at the front line inthe battle for LGs autonomy.

Indicators:5.1. Fairness of the electoral system:5.2. Level of citizen political participation: 5.3. Sustainability of the municipal movement:5.4. Transparency and accountability of local authorities and management:

The electoral systemThere is a clear commitment to theprinciple that locally elected leaders shallexercise the powers of a local authority.Elected councils have a three-year tenure.In 1998, the councillors were

democratically elected in electionsconducted by the Independent nationalElectoral Commission (INEC). TheConstitution now provides for theestablishment of a State ElectoralCommission by each State, it is this bodythat now conducts local elections. This hasresulted in the States holding elections atdifferent periods although majority of

states held their council election in March2004.

There have been several agitationstowards extending the tenure of localgovernment officials to coincide with thetenure of other tiers of governmentsstatus but the change has not beeneffected.However, the local government chairmenare allowed to vie for a second termalthough, more often than not these pastchairmen are not re-elected into office, asit is the belief of the people more oftenthan not that they were not properlyserved.

The representation of the local authorities

Decentralisation reforms were meant toprovide the local governments with self-governance. In 1966, when the militarytook over, the local government powerswere further subsumed by the states, thenof course the local governments were theaffairs of the state government. Somestates introduced local administrations thatthey had full control of the running of thelocal government area.With the introduction of the 1999Constitution it does appear that with the

new reform of local government authoritiesas they were recognised as the third tiersof government and were given more roomto govern independently their localitiesalbeit with interference from the state fromtime to time.However, with a lack of real autonomy andenough revenue it is quite difficult for localgovernments to exercise their authority toits fullest potential.


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The local participation (relation between municipal organs and the civil societyorganisation)The government needs to be bold totransfer substantial power to the localitiesto challenge the local elite to engage or be

involved with the scheme ofdecentralisation. The people participateenthusiastically in local development whenthey control the decision-makingmachinery, especially when they are ableto elect and remove their leaders.Secondly, transfer of substantial powerswithout adequate transfers of resourceswill undermine decentralisation. Localitiesneed to have resources to exercisewhatever autonomy they are granted as aresult of decentralisation.

In Nigeria, whilst formal local governmentpowers are vested in an elected localgovernment council, traditional rulersexercise influence appropriate to theirstatus for the rigmarole of local politics butalso makes available their resources,

especially in respect of mobilisation andpolitical communication, to the localdevelopment effort.

In order to preserve the traditional positionof traditional rulers and Chiefs, thegovernment has decided that, there shouldbe Traditional Council for each LocalGovernment authority area or a group ofLocal Government authority areas overwhich a traditional ruler has suzerainty. ATraditional Council consists of traditionaloffice holders, the Chairman of the LocalGovernment authority, one or twotraditional representatives of each LocalGovernment authority council, as may be

considered appropriate and any otherperson(s) who may be desired, in order tomake the traditional Council broadlyrepresentative of the major facts of life inthe entire area

The transparency and accountability system of local managementAccountability, transparency and integritymust guide the use of developmentresources at all levels to make localgovernance effective and responsive to

the needs of the people.Financial accountability in localgovernment is monitored through externalaudit carried out by an independentAuditor-General of local Governments.While all states have an auditor,-general,everywhere he has been emasculated byinadequate manpower, poor budgetaryprovision, lack of official support from thestate government and absence of up todate annual accounts to work on. Whilemany local government lack internal

capacity to keep good records andprepare timely accounts to enable auditsto be carried out on schedule, some willfully resist submitting their accounts foraudit.In order to promote accountability, the newlocal government reforms have entrustedthe Department of Local Government inthe Governors Office the powers of

ensuring proper accounting of localgovernment finance and auditing same.The principal aim of this provision is toensure that the local governments comply

with the financial memoranda, accountingcodes and procedures.There have been tepid efforts inprosecuting local government chairmen,and the various state accountants-generaland auditors-general, who appropriate thefunds. None of these officials enjoys theimmunity, which hinders prosecution.We find evidence of limited accountabilityat local levels, specifically reflected in thenon-payment of salaries of health workers,variation in which cannot be explained by

appealing to lack of resources available tolocal governments.We believe the war on corruption wouldsucceed more if it is fought within the lawsand with great examples from theauthorities, at all level. Sheer legislation,especially when it is unconstitutional, willbe extremely unhelpful.

The municipal movement and the decentralised cooperationThere is a variety of civil society

organisations (profit and non profit) that inone way or another cater for the needs of

the community. They are interrelated

through a network of horizontal linkagesand work in partnership with the respective


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spheres of government. The mostprominent organisation is the Associationof Local Governments of Nigeria(ALGON), a product of Government wasformed in 1995 but was formallyinaugurated in November 1999.Thus, one of its priorities since inceptionhas been to lobby for the introduction of abill of law at the Parliament for the purposeof amending the provisions of the 1999Constitution which reduced the localautonomy. The main objectives of thisproject are:- to restore local governments autonomyvis a vis the States, as much as theFederal Government ;- harmonizing the legal and administrative

system of the local governments in orderto destroy the present anarchy resultingfrom the authority given to each State tolegislate on its local governments.- to dissolve the electoral commissionsestablished at the level of each State forthe purpose of replacing the FederalCommission ;- to bring an end to the interference of theGovernors of the States in themanagement of the financial transfer tothe local governments, especially,

managing the Federal Grants Account ofthe local governments ;- to cancel the practice of withdrawal atsource that has been in operation forseveral years on the quota of eachauthority at the Federal Account for thepayment of the salaries of primary schoolteachers ;- the legislative integration of decree n21of 1998 which enumerates the taxes,rates and fees included in the internalbudget revenues of the local governments.

At the same time, ALGON has alsoinitiated a negotiation with the FederalGovernment for an increase in the grant

from the Federal Grant Account. Arepresentative of ALGON is therefore,participating in the deliberations of theNational Revenue Mobilization and FiscalCommission- (NRMAFC)This commission is working on therevenue distribution of the countrybetween the national administrativebodies.On the other angle, ALGON haspositioned itself as a formidableintermediary between the localgovernments and their partners. As a wayof harmonizing the activities of the donors,the Association has demanded that all theinterventions of donors in favour of thelocal governments should pass through it.

This strategy has helped to reduce certaindisorders in the supports of the financierson decentralization matters.Thus, in 2001, ALGON, in collaborationwith development partners, traininginstitutes and civil society organizationsinvolved in the field, established a mediumterm training programme for the municipalpersonnel at all levels and in all thesectors of local development.Communication is another important fieldin which the Association is investing. After

having built, with the MDPs support, anInternet website for itself and for the use ofits members, ALGON has, since 2001,embarked on equipping all the rural localgovernments with computer facilities withpermanent internet connection known asthe Rural Internet Communication System.ALGON has also engaged itself in theimprovement of the security system in thecountry through a National SecurityScheme under which logistic support,notably in form of delivery of Jeeps and

other vehicles, was given to the securityagencies.

VI- The Local finances

Evaluation:The LGs portion of the national revenue is duly transferred. But, the amount internally generatedby each local government has suffered a systematic decline as they have shirked theirresponsibility of augmenting and concentrating rather on federal and state government for fundsfor the performance of their statutory functions. Compared to other governance levels inputs inthe national economy, the LGS contribution can be considered negligible.

Indicators:

6.1. Consistency of intergovernmental transfers :


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6.2. LG performances in locally generated resources:6.3. The economic and financial weigh of LG:

Intergovernmental transfersWhen the 1976 reform was introduced, theFederal Government ensured that 100% of

the Federation Account was transferredmonthly to the States for their LocalGovernments. The States maintained aState joint Local Government Account intowhich the transfer from the FederationAccount and 10% of the States internallygenerated revenue were lodged forsharing among the local governments. TheStates maintained a State Joint LocalGovernment Account into which thetransfer from the Federal Account and10% of the States internally generatedrevenue were lodged for sharing amongthe local governments. During the SecondRepublic (1979-83) many States declinedto make their 10% contributions regularlyand some even raided the State JointLocal Government Account to shore totheir own finances. In addition, some Stateencroached upon the functions assignedto local government, particularly those withrevenue-yielding potential.To forestall the states encroachment on

funds meant for local government, in the1980s, the State Joint Local GovernmentAccount was abolished and theremittances sent directly to the localgovernments. Also the proportion of theFederal Account transferred has increasedfrom 10% to 15% in 1989 and 20% since

1992. Although the state are still requiredto remit only 10% of their internally

generated revenues to their localgovernments, not all of then are capable todo so regularly. In light of this and thegenerally poor performance of the localgovernments in internal revenue collected,they are also given 25% of the ValueAdded Tax (VAT), a federally collected tax.The fiscal transfers from the FederationAccount are subject to certain deductionsto fund essential expenditure. Forexample, 1% is Commission fund localpersonnel training programmes. Similardeductions were made for staff pensions,funding of primary education and theupkeep of traditional rulers.However, Government has recentlyreduced the number of such deductions togive expression to the letter and spirit ofthe new democratic constitution. Thus, thedeductions or the upkeep of traditionalrulers which was originally federallymandated has ceased. It is now up toeach State formulate appropriate policies

for the upkeep of its traditional rulers. Thepolicy on the funding of primary educationis also under review and changes may beintroduced very soon.The Central government still pays aproportion of local government salaries.

Internal revenues generatedA lot of what constituted the principalsource of revenue foe local governmentnow constitutes only a minimumcontribution. The internal revenue sourcesfor local governments include various userfees and charges, property rates and polltaxes.The main issues surrounding the tax-raising powers of local government centrearound the inadequacy, in terms ofcoverage, and the non-buoyancy of thosetax or revenue heads that fall under thejurisdiction of local government. Thesetaxes include licences and fees ontelevision and wireless radio; market and

trading licence and fees; car park duties;and advertising fees.

In spite of provisions in support of theassessment and collecting of propertyrates, not much progress has been madein exploiting its potential as source of localrevenue, except in Lagos State where ithas always contributed to localgovernment revenue since 1915. Themain reason has been that the statutorychanges were not matched by political willon the part of other state governments tosanction the assessment and collection ofproperty rates.Clearly the growth in property ratescollection improved the proportion ofrevenue internally generated by the Lagos

state governments thereby making themless dependent on financial transfer fromthe state and federal government. It is


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common knowledge that this revenue wasable to sustain the Local governments inLagos when their allocations were seizedby the Federal Government for increasingthe number of local governments from 20to 57.Poll tax on the other hand is a kind of levyimposed on all eligible adult male; this wasconsidered a regressive form of taxation.Proceeds have at one time served as thebasic life wire of local governmentsparticularly in the north. This form ofrevenue was once abolished thenreinstated in 1984 but its significance tolocal government has continued to decline.The indication today is that thesignificance of poll tax will continue to

decline as local governments continue tolay more emphasis on rates.More often than not, the inadequacies ofavailable financial resources open up thenecessity for loan raising. But here again,is the control of the central governmentover local governments borrowing.Towards this end, the relevant provisionsof the 1976 Guidelines directed amongothers that: loans should be restricted to

minority of local government developmentprojects which can generate substantialimmediate and direct revenue to coveramortisation interest and operating cost;and the maximum period of any loanshould be 10 years. These guidelineshave contributed to the limitations of theserevenues sources at the level ofgovernance because very few localgovernment capital project can generatedirect revenue to amortise and serviceloan capital and the period is seen as tooshort.But in general, the local government needto improve their revenue base and turnaway from their over reliance on externalrevenue. So far only Lagos State

managed to achieve that feet during itsperiod of zero allocation. ALGON quiteappreciates the state of affairs and has incollaboration with some consultantsorganised workshops aimed at improvingthe internal revenue collections of localgovernments. It is their firm belief thatincreased revenue will aid the localgovernments ability to provide for thewelfare of the people.

The financial and economic weight of local governmentsIt would be preposterous to talk about anysignificant impact of local governmentrevenues on the economies of the nation,as they are rather negligible compared tothe input of the other levels of government.It has been said that local governmentsneed more empowerment thus, reforms inthe area of tax legislation would be of helpto take beneficial decisions and devisemeans of recovering local taxes.Also local governments have beenimposed very narrow revenue base by the

statutory distribution of tax-raising powersand their revenue rights have beenconstantly infringed upon by stategovernments in particular.It has been discovered that localgovernments on the average spend about75% of their revenue on recurrentexpenditure and only about 25% on capital

development. The main reason is the factthat the provision of primary health andprimary education were transferred fromthe local government to the FederalGovernment, hence a greater percentageof their revenue was spent on two servicesthat are capital intensive.All major sources of revenue - petroleum,profit tax, import duties, mining rents androyalties, and company income tax falling within the jurisdiction of the Nigerianfederal government it is not surprising that

local governments revenues are poor.Under the pressure to increase the weightof local government input to the federationaccount, local governments haveintroduced various charges for some oftheir services. Such fees serve as ameans of recovering some and possibly allof the variable costs of operating facilities.

VII- Local development and poverty alleviation

Evaluation:LGS are empowered to plan and implement their development process. They intervention in the

area of service delivery and socio-economic facilities is meaningful.Indicators:


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7.1. Local development planning capacity : 7.2. Level of service delivery to the population:7.3. Support to the local economic actors:

The local development planningLocal development depends on committedand effective local governments capable ofproviding infrastructure and services thoselocal needs. Public policies andmechanisms should ensure that goodgovernance principles are upheld,especially in state and sub-nationalinteractions. Since they are close to thepeople, local governments are in the bestposition to involve everyone, especiallypoor and marginalized people, in planning,implementing and monitoring development

activities.The Federal Government has encouragedstate and local governments to developand implement their own economicempowerment and development strategies SEEDS (National EconomicEmpowerment and Development Strategy)and LEEDS (Local EconomicEmpowerment and DevelopmentStrategy). The underlying strategy is thecohesive coordination of developmentprocess, through the adoption of bottom-

up approach and the inclusive of allstakeholders in development.The new development strategy accordswith the tents the human developmentparadigm in the following ways:

- It promotes local participation indevelopment management.

- It effectively discontinues thetop-down approach ofdevelopment management andholds the bottom-up approach.

- It ensures value for money in

service delivery.

- It makes development people-centred, with people being themeans and end of truedevelopment.

Human development is concerned withboth building human capabilities throughinvestment in people and utilizing thesecapabilities fully for growth andemployment.Human development emphasizes equality,sustainability, productivity andempowerment. Issues such as gender

inequality, regional inequality, social andpolitical exclusion, participation, humanright, the rule of law and basic freedomsmust be addressed.Human development defines the end ofdevelopment and analyses sensibleoptions for achieving them.The human development paradigm is alsorelevant to the Federal Governmentstrategy because it embodies the followingconcerns of the Millennium DevelopmentGoals (MDG):

1. Eradication of extreme poverty andhunger

2. Achievement of universal primaryeducation

3. Promotion of gender equality and theempowerment of women.

4. reduction of child mortality5. Improvement of maternal health6. Combating HIV/AIDS, malaria and

other diseases7. ensuring environmental sustainability8. Developing a global partnership for

development

Local Government supply of basic services to the populationIt is granted that local institutions ofgovernment generally owe their existenceto the need to administer basic localservices. Although not all local servicesare handled by local governments it mustbe said that some services that are notprimarily the responsibilities of localgovernments have strong localgovernment presence in some of their

aspects ; sometimes central governmentsincrease their scope of services provision

at local level but still require local officialsto provide the actual services on theground.The most common among the functionsexclusively reserved to the localgovernment councils include the provisionand maintenance of services like markets,motor parks, slaughter houses andenhancement of sanitation (public

conveniences and refuse disposal).


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The concurrent list of functions of localgovernment includes activities for whichthe state could retain authority in the initialphase of the reform but which might behanded over fully to local governmentswhen the latter becomes fully competentto handle such activities ; these includedevelopment of agriculture and naturalresources (other than exploitation ofminerals), primary education, maintenanceof roads, provision of rural water supplyand provision and maintenance of healthservice.

In view of their financial capabilities, mostlocal governments councils cannot devotemore than a token of their revenues tocapital project, resources are usuallyallocated to the economic sector and thisaffects drastically the level of local serviceprovided by the local governments.More often than not, apart from statutoryfunctions, local governments have becomeeffective channels for implementing bothfederal and state development policies.

The support to the local economic actorsLocal governments are expected toparticipate in the process of planning oftheir state through membership of State

Economic Planning Boards, but moststates are yet to establish such boards.The duty of this body is to receiverecommendations formulated by the localgovernments.It has been said that a diversified economywould reduce dependence oil and gasthereby jump-starting new industries andsustainable livelihoods within thecommunities. From its stock of natural andhuman resources, most communities offerimmense opportunities for developing adiversified and growing economy. Usingexisting assets, a diversified economywould reduce the heavy focus on oil and

gas while providing as basis for growthclusters within the region.Pro-poor economic growth would expand

the employment, productivity and incomesof poor people; unleash human andinstitutional capacities; eradicate povertythrough improved livelihoods; andstimulate industrial development throughincreased access to basic public goods.Improving rural competitiveness in non-traditional agricultural products throughvalue-added exports could be one majorsource of economic diversification. Variousregions can readily produce rice, sugar,cocoa, roots and tubers, citrus fruits,plantains, rubber and rubber products, andare blessed with many resources for aqua-culture and forestry.

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Decentralisation Nigeria