EFFECT OF STATE AND LOCAL GOVERNMENT JOINT ACCOUNT ON SERVICE DELIVERY

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EFFECT OF STATE AND LOCAL GOVERNMENT JOINT ACCOUNT ON SERVICE DELIVERY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The State/Local Government Joint Account System as a financial instrument in Nigeria first came into operation through the 1979 constitution, though was abolished in 1989 by the then Military Head of State – General Ibrahim Ibadamosi Babangida because of wrong implementation of the system by state government. On restoration of democracy and civil rule in Nigeria in 1999, the State/ Local Government Joint Account System found its way back to the constitution. The creation of this special account by the constitution was borne out of the need to enhance rapid grassroots development through prompt provision of adequate social services and ensuring effective supervision of the distribution and allocation of revenue to local government from the federation account. The constitution stipulated the establishment of the special state – local joint account in a bid to entrust the state with powers to distribute revenue due to local government from federation account and their own (states) 10% internally generated revenue so as to ensure effective supervision of the spending of the funds towards service delivery. The intention of this account is rightly expended on the implementation of the statutory responsibilities of the local government. Local government as the closest government to the grassroots people is entrusted with varied responsibilities to ensure that there is adequate service-delivery to the local populace.

Based on the responsibilities entrusted on the local government system, section 7, subsection 1 of the 1999 constitution of Nigeria stipulates that “the system of local government by democratically 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. Also, section 160, sub-section 6 establishes the State Joint Local Government Account System “into which shall be paid all Allocations to the Local Government Councils of the State from Federal on Account and revenue from the state grant. Furthermore, section 162, subsection 7 states that “Each state shall pay to Local Government Councils of a States that “the amount standing to the credit of Local Government Councils of a state shall be distributed among the Local Government Councils of that state on such terms and in such manner as may be prescribed by the House of Assembly of the State”. All these constitutional provisions in the 1999 constitution of Nigeria were to ensure that there is smooth local administration and effective service-delivery at the local level. This is because Local Government is the closest government to the rural people and needs to attend to the needs of the grassroots people. However, it is obvious that Local Government Councils in Nigeria are not living up to expectations. One of the factors responsible for that is lack of sufficient fund. Finance is the life-wire of any organization and it is only when a local government is financially viable that it will be able to achieve her statutory responsibilities. Most Local Government Councils in Nigeria are not financially viable because of their inability to raise internally generated revenue (IGR) that will be sufficient for their lip-keep. This accounts for the reason why most of them depend entirely on federation allocation even for payment of their staff. The lack of adequate finance for local government councils to carry out their statutory responsibilities has painted ugly picture of the system and that is the major reason why many Nigerians are clamoring for scraping of the system.

Statement of the problem

There may have been previous researches in this subject. This work gives further explanations and analysis in awareness of professions in business education among secondary schools

Objectives of the study
To understand the impact of state and local government joint account on service delivery
To understand the relationship between state and local government joint account and service delivery

Research questions
What is the impact of state and local government joint account on service delivery
What is the relationship between state and local government joint account and service delivery