Fiscal Federalism and Growth of Local Government Expenditure in Nigeria; Structural Analysispdf

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Fiscal Federalism and the Growth of Local Government Expenditure in Nigeria (1976 – 2006): A Structural Analysis


Muhammed Tanimu

A Seminar Paper Presented in partial fulfillment of the requirement for the award of Ph.D in Public Administration to the Department of Public Administration, Faculty of Administration, Nasarawa State University, Keffi


The paper highlights and assesses the nature, quality, value of particular issues and matters that have dominated the Nigerian federal polity and which have created unpleasant experiences and pains at one ABSTRACT

The true situation of Nigerian federalism constrains local autonomy. It affects the local governments' ability to mobilise and use revenue to meet their obligations in a sustainable manner. This study examines the possible causes of this problem and concludes that their implications for local government are very serious. It however recognises other issues like corruption, poverty, mismanagement and low quality of personnel, both political and career officers, which also undermines the role of local governments in development. The study confirmed the dominance of consumption expenditure over capital expenditure, which contributed to non-performance of local government in areas of rural and grassroots development. Also contributing to the non-performance of local governments was the excessive control of state government over the budget of local government. The role of Local Government Service Commission and the Ministry or Department of Local Government in the Deputy Governor's Office, has virtually constrained the independence of local governments to use their resources for the services that are of priority to their people. Almost all the expenditures of the local government must conform to the provisions of the Financial Memoranda, which in itself is quite obsolete and out of tune with the developmental role of local government in the 21st...
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