Finance and Functions of Local Government in Nigeria

Abstract

As Nigeria marks its eight National Assembly, it becomes apposite that finances and functions of local governance become
paramount in national discourse in order for it to take its pride of place. This is in response to the seemingly neglect that local
governance have faced over the years with the new canon of never again shall its finances be subjected to the whims and
caprices of the state governments. In the lucid preparation, resort was held to textbooks, opinion of essayists, case laws and
the constitution of the federal republic of Nigeria. The position of the article emphasized the fact that the import of proper
import of finance makes it sustainable as it is not surprising that the finance and functions of local governments are next to each
other in the Constitution, for both have symbiotic relationship. Without the finance, the functions cannot be executed, and
without function, finance would come to naught. Taken together, both are the main basis of the local government system; the
raison d?tre of the councils, which ab initio, were established to give practical expression to local initiatives. The sources of finance for local government are basically three: Direct allocation from the Federal and State Governments; internally generated revenue; and loans, grants, donations, interests, elect ere. The question is whether indeed there are first, enough sources of revenue for local government, second, whether the local governments themselves tap, or adequately tap these sources, and third, whether the accruable revenue are adequate for the execution of their functions.