Local Government Accountability through Taxation: The Nigerian and Colombian Experience

Given the elastic limit of the centraI government, the rote of local or municipal government system in extending governance to the grass root is critical, particularly in less developed countries, where resources are scarce and underdeveloped. Colombia and Nigeria share common characteristics and experience in local government evolution. The political and administrative arrangements confer enormous responsibilities on the local government system amidst disproportionate fiscal capacity. The situation is exacerbated by the uncontrollable influence of the political elites who often hijack the machinery of government at the centre; and the unfavourable intergovernmental relations among local and other tiers of government. In consequence, local government managements heavily depend on the centra! government for "transfers ", in order to meet their service delivery obligations to the citizens. Literature and empirical studies on options for financing local governments focus hugely on prospects of reconfiguring the existing architectural design of intergovernmental revenue sharing arrangements, more in favour of the councils. In contradistinction, this study contends that such focus misses the panoramic view of the situation. The paper examines the option for local government financing through property tax. Based on the findings, it is recommended that, among other options, a central independent tax regu/atoiy and enforcement agency should be established, to drive property tax compliance, given the huge potentials of the source, and ability to pay by wealthy property owners, who are either bourgeoisies or "privileged” political or bureaucratic elites.