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The importance of Financial independence in LG administration 

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Democracy, Rule of law and Good governance: The Nigerian experience
5 February 2021
2006-2021: The ordeal of the Lagos Light Rail project
9 February 2021

The more significant part of Nigeria’s 774 local governments is in an awful monetary position. This critical circumstance can be attributed to a range of elements that include an absence of proper financial and executive abilities, political impedance and infighting in gatherings. The inability to fill key staff positions is likewise an issue, similar to how there’s an absence of political will to guarantee responsibility. 

There are severe consequences to this inadmissible situation. The most significant is that local governments can’t do fundamental administrations, for example, clean water, sterilisation and power. The rise in protests by disappointed citizens is an obvious indicator of individuals’ dissatisfaction and the disappointment of neighbourhood government to offer fundamental types of assistance. 

Local governments are also liable for offering assistance, such as refuse and sewage expulsion and removal, stormwater waste frameworks and local government streets, and road lighting in a sustainable manner. The Constitution and the nation’s laws clarify that local authorities and councillors are responsible for guaranteeing excellent monetary administration. There could be disciplinary or criminal procedures if they neglect to do as such. As far as it matters for them, residents are qualified to get astounding administrations from their separate districts. What should be done?

Several reasons abound on the need for local government financial autonomy in Nigeria. It is imperative to empower the local governments with independent authority to perform a series of financial functions. Combined with this, such independence allows each local government to carry out other operations, such as executing local government policies, projects, and its own regulations as necessary for the local government.

The financial independence also includes the ability to solely control the local government finance, manage and strategically allocate resources. Financial freedom is premised on the proposition that when the local government is empowered to make certain financial decisions on its own and provide essential services to the people, the government would indeed evoke a sense of belonging from the people in grassroots.

Another critical reason for local governments to be financially independent is rural development. Local government maintains proximity with people at the grassroots. Hence, having the power to receive allocation directly from the federal government with state government undue interference will help implement rural transformation policies without waiting for state government. 

Several clear cases were meant for rural development, and other necessary provisions were diverted and mismanaged by the state governments. Local government financial independence will, therefore avail local government administrators direct access to funding.

In conclusion, in all cases, Nigeria needs to work more diligently at guaranteeing that local government authorities are considered responsible. Responsibility is one of the central standards of the country’s established democracy. However, this responsibility may fail to be a reality if local government financial independence is not actualised. 

 

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Kayode Odesanya
Kayode Odesanya
Kayode Odesanya is a senior project manager at RED | For Africa's enterprise developmental company, The Future Project Africa. He is a communication, marketing, brand, product & project expert. His writing revolves around policy, governance, media, corporate communications, products & technology.

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