INTERROGATING THE CONSTITUTIONAL FOUNDATIONS FOR LOCAL GOVERNMENT FINANCING IN NIGERIA

Abstract

Local governments in Nigeria are faced with limited financing sources. This has led to an increased burden to improve its sources of financing. The local governments rely on allocations from other levels of government, and this undue reliance leaves it constantly underfunded. This situation also exposes the dysfunctional relationship that exists between the local government and the other levels of government. The root of this problem lies in the structure of Nigeria’s fiscal federalism as defined by the Nigerian Constitution. This paper examines the constitutional framework of the local government and interrogates the structure of Nigeria’s fiscal federalism as designed by the Nigerian constitution. In arguing that the path to fixing the problem with local government financing in Nigeria lies in both true decentralised federalism and expansion of revenue sources for the local government, reliance is placed on the relevant provisions of the Nigerian Constitution, case law, and relevant literature.

Keywords: local government, local government financing, public revenue, fiscal autonomy, fiscal federalism, revenue allocation.

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UNILAG Law Review, (2023) Volume 6 Edition 1.