LOCAL GOVERNMENT FINANCE IN NIGERIA: CHALLENGES AND PROSPECTS IN A DEMOCRATIC ERA
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Abstract
The paper examines the sources of local government finance in Nigeria and the factors affecting the financial viability of local government councils within the purview of fiscal federalism as enshrined in the 1999 institution of the Federal Republic of Nigeria (as amended). Using data generated It was further revealed that despite the fact that the funding of local governments in Nigeria is an important aspect of fiscal federalism and intergovernmental relations; has suffered setbacks, thus, circumventing development at the grassroots. This ugly trend is usually associated with or provoked by certain underlying factors like overdependence on statutory allocation from the Federal Account, corruption, tax evasion from citizens at the grassroots, creation of Non-viable local government councils in terms of the capacity to generate finance internally and effectively utilized it for development purposes, and lack of financial autonomy. The paper therefore recommend that financial viability backed up by effective management: public accountability.fiscal autonomy, staff motivation and servant leadership attitude among politicians are imperatives in building capacity at the grassroots for legitimacy of creation and sustainable development.