ABSTRACT
In every emerging society, the position of the third tier system of government cannot be over emphasized. Local government as a unit and level of government at the grass roots has come to play significant transformative roles followings its closeness to the people and their needs. In the long run, actualization of the development will likely be fraught if local government cannot effectively and efficiently discharge its bequeathed functions through the law establishing it without adequate funds at its disposal. However, it is the interest of the paper to appreciate adequately the essence of local government in addressing developmental challenges, its relationship with the state and disposition to her financial obligations. The study utilized qualitative method in generating its data; while using power theory as a framework of analysis. The findings of the study has significantly revealed that the weaknesses and challenges of local government in discharging its functions in the contemporary dispensations are holistically tied down to the joint account operation of a state and local government. This relationship had stripped local government its status and financial autonomy. Thus, for institutional transformation as it pertains to grass roots development and leadership transformation to be attained, the study recommended that local governments should have their own separate accounts upon which statutory allocations, grants and other payments shall be paid in for effective operations in the fused cum diffracted Nigeria societ
CHAPTER ONE
INTRODUCTION
- Background to the study
The establishment of the State Local Government Joint Account System (SJLGAS) by section 162 of the 1999 Federal Constitution of Nigeria was meant to facilitate rural development of the local Communities through effective supervision of the distribution and efficient management of revenue accruing to the local government councils from the federation account (Agu, 2007). The Nigeria Economy is currently and largely driven by the Public Sector. As a result, the pace of economic and social development at both the urban and rural areas is dictated by the government. The State and Local Government Councils in their Jurisdictions are expected to be a vehicle for rural development and transformation since they are closer to the grassroots than the Federal Government (Acba, 2008). Based on this reason, the 1999 Constitution of Federal Republic of Nigeria made provision for the Operation of State and Local Government Councils Joint Account System (Bello, 2006). Section 7(1) states that “ the system of Local Government by democratically elected Local Government Councils is under this Constitution guaranteed; and accordingly the Government of every State shall, subject to section 8 of the Constitution ensure their existence under a law which provides for the establishment, structure, composition, and finance of such councils.’’ Section 7(6B) makes provision for statutory allocation of revenue to the Local Government Councils in a State, from the Federation Account. Furthermore, Section 162(6) establishes the State Joint Local Government Account System “into which shall be paid all Allocations to the Local Government Councils