Revenue Rights and Local Governments Development in Nigeria (2010-2020)

Abstract

The essence of reforming local government system in Nigeria was to decentralized governance, bring government closer to the people at the grass root and render social services pivotal in engendering national development. They are purposefully located and responsible for the governance of about 80 percent of the estimated 160 million people of the Nigerian population. Thus, they are said to be in a vintage position to aggregate and articulate the needs of the majority of Nigeria” and facilitate rural development through the application of the needed financial and resources in their operations. Fiscal problem is the most severe problem facing Local government in Nigeria. It is in the light of this problem that this paper focuses on the twin issues of revenue rights and fiscal jurisdiction of selected local government areas of Rivers State namely Khana and Gokana L. G.A and its attendant’s effect or implication on their development. Content analysis techniques and overlapping authority modes were used as methodology and theoretical framework respectively. In the finding it was discovered that inadequate revenue and restricted tax powers have been the bane on rural development in Nigeria. For a financially healthy local government to exist there is need for the allocation of responsibilities and functions in accordance with their taxing power and ability to internally generate fund. The constitutional provision that recognizes local governments’ power in this regard must give them full freedom to operate and this must be well guaranteed and adequately protected. These, coupled with the need to review revenue sharing formula, ranting of fiscal autonomy. Fiscal discipline as well as making local government responsive, responsible and accountable to the people’s will, this can set our local government free from the fiscal stress promoted and straightened by the 1999 constitution of our country Nigeria.