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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.
1.1
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
1.2
Objectives
of the study
1. To
understand the impact of state and local government joint account on service
delivery
2. To
understand the relationship between state and local government joint account
and service delivery
1.3
Research
questions
1. What
is the impact of state and local government joint account on service delivery
2
What is the
relationship between state and local government joint account and service
delivery
1.5
Research
hypothesis
H0: There is no
relationship between state and local government joint account and service
delivery
H1: There is a
relationship between state and local government joint account and service
delivery
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