The Effects of State-Local-Governments Joint Account on Local Governments’ Impact on Rural Development in Nigeria

Abstract

This paper examines how the operation of State-Local Government Joint Account affects the impact of local government, in executing rural development programmes at the grassroots. The intention of the constitution is to forge cooperation between the state and local governments in managing efficiently local government allocations from Federation Account for the benefit of local people, but reports and agitation of the people on nature of operation of the account proves otherwise. For the purpose of contributing towards the reform of the operation of the account, the paper examines the nature of the operation of the account in some selected states, evaluates the effects of the operation on the local government impacts on rural development, and identifies ways of improving the operation of the account to achieve its objectives. In the process, descriptive analysis method was adopted in examining the available secondary data. However, the findings indicate that the state governments manipulate the account to the disadvantage of local governments. Also, most local governments are unable to contribute significantly to rural development activities because of paucity of funds. Therefore, the paper recommends way out to improve the operation of the account, instead of abolishing it, through effective budgeting; compliance, monitoring, and enforcement by Community Development Associations (CDAs); and prevention of mismanagement and diversion of funds by Anti-corruption agencies.