Summary: This article highlights the functions of Local Government Areas in Nigeria and relates them to how the recent court judgment granting LGA financial autonomy can be advantageous to the development of grassroots.
Nigeria’s 1999 Constitution recognises three tiers of governments – the federal, the state, and the local government area. But over the years, state governors have stifled development in the local government areas through the State and Local Government Joint Account (SLJA).
Although the State/LGA joint account was meant for easy disbursement of monthly allocations from the federal to state, then from state to the council areas with the aim of allowing states to coordinate development in the local area, but state governors have abused the role by withholding or dubiously spending finances of the LGAs.
Almost all the 36 governors in their domain either give less than 20% of allocation to the council areas or handle all financial-related matters of council areas at the state secretariat. This has impeded development in the 774 local government areas across Nigeria.
So, the judgment on Thursday, July 11, 2024, by the Supreme Court to grant full financial autonomy to the local government areas by ruling that the federal government should pay the monies accrue the council areas into their local government accounts directly came as a relief and a step to trigger development in the LGAs.
The 7-man panel of the apex court ruling which was read by Justice Emmanuel Agim, ruled that state governors or House of Assembly that make laws in the process of appointing caretaker chairmen instead of conducting election violate the Section 162 of the 1999 Constitution (as amended).
As we have seen for over 20 years, the 36 state governments have not only financially strangled local governments, they have also hijacked nearly all the basic functions of the council areas.
Here are the 10 advantages of the recent financial autonomy to the 774 local government areas in Nigeria:
Revenue from registration of births
Local governments generate revenue through registration of birth and deaths, but before the Supreme Court LG financial autonomy ruling, some state governments have hijacked this role from the LGA.
For instance a state like Osun now issues certificates of local government of origin online to the indigenes of the state. The payment, which is done online goes directly into the state account.
But by this ruling, the local governments can now take charge of this role and use the monies generated from such issuance to support development in their council areas.
Participation in education development matters
The issue of out-of-school children emanated from the neglect by each council area because of little or no resource to adequately perform their roles of participating in the provision of and maintenance of primary, adult, and vocational education.
The local government areas are the closest tiers of government to the communities, they can deploy their local officials to monitor progress made in developing infrastructure for schools.
Some council areas in Nigeria are like a community of people, where they know the family compound of one another. Issues on out of school can effectively be dealt with before becoming a national disaster like we currently have across Nigeria.
Development of agriculture and natural resources
It is the one of the functions of the LGAs to develop agriculture and natural resources. They know locations of where natural resources are located. They know when it is illegally being exploited by unlicensed miners.
Their autonomy will encourage them to work as a partner with their respective state governments.
Provision and maintenance of health services
In the 1990s, there was the War Against Indiscipline popularly called WAI. They enforce environmental sanitation at the local areas. They encourage residents to keep their environment clean so as to prevent preventable diseases.
Through the allocations of the LGAs, they were able to provide and maintain health centres at various wards. Only a healthy person can contribute meaningfully to the economic development of an area.
Revenue from naming of roads
A lot of people now arbitrarily name roads to immortalise themselves because of the technical collapse of the LGA as a result of the high-handedness of the state governors.
Revenue from naming of roads no longer goes to the account of the local government; once you have a political connection with the state governor, you can get approval from there and name a street after yourself.
With this autonomy, which also portends political freedom for them, LGAs will now be able to make more revenue from naming of roads, streets and numbering of houses. It is the function of the LGAs, which they can later report to the state, to help in planning.
Making of recommendations to state on economic planning
Planning and development start from the closest tiers of government to the people. Based on the first-hand information the LGAs received from their jurisdiction, they can collate and make recommendations to a state commission on economic and development planning.
This will only relieve the state government, but it will also make planning easier and effective for the state government.
Revenue from the collection of rates
Revenue from the collection of rates, radio, and television licences can be utilized by LGAs to support infrastructural development in their domains.
Construction and maintenance of roads to spur agriculture
Farming is largely done in the local areas such as villages and remote locations, which are most of the time far from the state capital. These areas don’t have motorable roads to transport their perishable harvest to the market or to the cities for sales. They account for losses in most cases.
With the latest financial autonomy granted to the LGAs, they will have money to construct and maintain roads, streets, lightings, drains, and other public highways, parks, gardens, open spaces, or such public facilities for the use of their people.
This will spur agricultural development. It will also reduce migration from the local areas to the urban areas.
Revenue from other sources
Other sources of revenue for the council area include licencing of bicycles, trucks, canoes, wheelbarrows and carts; approval and regulation of slaughterhouses, slaughter slabs, markets, motor parks, and public conveniences; and control and regulation of out-door advertising and hoarding.
Timely payment of LGA staff salaries
Some local government officials are owed salaries, sadly by their state governments. In most cases, salaries of local council officials are processed at the state secretariat. But with the latest financial autonomy ruling in favour the LGAs, timely payment of employees of the council areas will be a morale booster to the officials.
In some “civil servant” states, it is when local officials are paid that they will be able to buy goods at the market, the buyer and the seller are happy when this kind of economic activity goes on among them.
Other functions of Local Government that can promote development include:
Assessment of privately-owned houses or tenements for the purpose of levying such rates as may be proscribed by the House of Assembly of a State
Provision and maintenance of public conveniences, sewage, and refuse disposal
Establishment and maintenance of cemeteries, burial grounds, and homes for the destitute or infirm
Conclusion
Now that the LGA financial autonomy judgment has overridden the section of the Nigerian 1999 Constitution that made provisions for the State and Local Government Joint Account (SLGJA), people of the local areas should start holding their chairmen accountable to minimize the issue of abuse of office by the LGA chairmen and other challenges that the autonomy might bring.
Practice questions:
- How can the recent financial autonomy to local government areas in Nigeria spur development at the grassroots?
- How will you will access the July 11, 2024 Supreme Court ruling that bars state governors and their agents from collecting monthly allocations on behalf of the local government areas?
- Will the judgment banning State and LGA Joint Account help to develop the grassroots? Support your answer with valid points.
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What challenges might local governments face after gaining financial autonomy, and how can they ensure accountability in using these resources?