Fiscal federalism and local governments' struggle for autonomy in Nigeria

Abstract

This paper delves into the complex interplay between fiscal federalism and local government autonomy in Nigeria, a nation marked by an intricate federal structure and persistent governance challenges. The study examines how Nigeria's fiscal federalism impacts the autonomy and effectiveness of local governments, focusing on the allocation and management of financial resources, political interference, and administrative constraints. Despite significant reforms aimed at decentralising power and improving local governance, local governments continue to face substantial hurdles, including revenue misappropriation and limited autonomy. The paper highlights the ongoing struggle for genuine self-governance against a backdrop of fiscal centralisation and political manipulation. By analysing the historical context, current practices, and international comparators, this study provides insights into the systemic issues undermining local government autonomy in Nigeria and suggests potential reforms for enhancing local governance and addressing developmental disparities. The findings underscore the need for a balanced approach to fiscal federalism that supports both effective local governance and overall national cohesion.