Author: The Nation

Chairman of the Senate Committee on Aviation, Dr AbdulFatai Buhari, has identified the Joint Accounts Committee (JAC) system and the absence of financial autonomy as major obstacles to meaningful development at the local government level.

Buhari, who represents Oyo North Senatorial District under the All Progressives Congress (APC), explained that the JAC structure enables state governments to control funds meant for local councils, often leading to the misappropriation or diversion of resources intended for grassroots projects.

He made the remarks while delivering a lecture at the awards day and grand finale of the 3rd anniversary of Ibadan Mega Voice, held on Sunday in Ibadan.

The event drew prominent personalities, including the Balogun of Ibadanland, Oba Tajudeen Abimbola Ajibola; Chief Executive Officer of Eternal Home Cemetery, Dr Adebukola Kadiri; Member representing Egbeda/Ona Ara Federal Constituency, Hon. Akin Alabi; Oyo State Chairman of Agbekoya Farmers Society, Chief Ashagidigbi Olatunde Bello; and Aare Onibon Olubadan-designate, Oloye Abiola Iyiola.

Also present were the President of NULGE Oyo State, Comrade Ayo Adeogun; former Commissioner for Health, Dr Azeez Adeduntan; Bishop Solomon Olusegun Aremu of Christ the Light Gospel Church; Mrs Daud Olalere; Mogaji Lukman Adumadehin; Chief Sulaiman Oduleye Odugunna; Oyo NUJ Chairman, Alhaji Ademola Babalola, and NUJ chairmanship aspirant, Comrade Adebayo Raji.

Speaking on the theme “Local Government Autonomy in Nigeria: The Impact, Prospects and Challenges,” Buhari stressed that the lack of autonomy has crippled growth across many local councils.

He noted that overdependence on state governments, made worse by the JAC system, has reduced local government administrations to mere extensions of state authority rather than engines of grassroots development.

He warned that unless financial independence is restored, local governments will continue to experience stunted development and remain unable to meet the needs of their communities.

Buhari said, “Conversely, the absence of autonomy produces adverse outcomes. Many local governments in Nigeria suffer from stunted development because of their dependence on state governments. For instance, local councils in Ebonyi State were unable to complete primary health centre projects because state governments withheld funds from the joint account. Similarly, in Oyo State, no local government has completed and commissioned a 5-kilometer inner road since 2019. Political interference in council affairs has led to poor budget execution, non-implementation of projects, and abandoned projects.

“The broader implication is that local governments, designed to be the engines of grassroots development, are reduced to administrative extensions of state ministries. This systemic dependency has eroded public confidence in the local government system and weakened Nigeria’s broader developmental framework. Financial dependence is another critical challenge. The joint account system allows state governments to manage funds meant for local councils, often leading to misappropriation or diversion. This has reduced local governments to mere administrative agents rather than autonomous development institutions; such financial dependence has rendered local councils “fiscally impotent and administratively irrelevant.”

“Political interference also undermines autonomy. In many states, local government elections are either manipulated or replaced with caretaker committees appointed by governors. This practice erodes the democratic foundation of local governance. A report in 2023 highlights that over 70% of local governments in Nigeria between 2015 and 2021 were managed by unelected committees, which diminished accountability and service delivery.

“Furthermore, limited internal revenue generation capacity restricts autonomy. Many local governments rely almost entirely on statutory allocations and fail to explore creative ways of increasing internally generated revenue. Without financial independence, autonomy remains theoretical. The absence of transparent auditing systems and citizen participation platforms creates loopholes for mismanagement. State governments often justify their control by citing corruption and inefficiency at the local level, creating a paradox where overregulation further weakens performance.

“The purpose of this presentation is to provide a critical and structured appraisal of local government autonomy within the Nigerian context. It seeks to clarify what autonomy means, why it is crucial for effective governance, how it has impacted development and service delivery, the prospects for its improvement, and the challenges hindering its full realization.

“This topic is especially relevant in modern Nigeria because the nation faces increasing demands for good governance, transparency, and effective service delivery at the grassroots level. The local government, as the third tier of government, is constitutionally established to serve as the closest institution to the people. However, it has often been constrained by legal, financial, and political limitations that prevent it from fulfilling its democratic and developmental responsibilities. Therefore, discussing local government autonomy is not just a theoretical exercise but a practical step toward achieving inclusive and participatory governance in Nigeria.

“Local government autonomy refers to the degree of self-governance granted to local authorities to manage their own affairs, make independent decisions, and carry out administrative, fiscal, and political responsibilities without undue interference from higher levels of government. According to Scholars, autonomy represents the “freedom of local governments to act within the confines of the law or constitution” in discharging their duties. Similarly, it is defined as the ability of local councils to exercise discretion in political, administrative, and fiscal matters necessary for grassroots development.

“This contradiction has practical consequences. For instance, the State Joint Local Government Account (SJLGA) system, introduced under Section 162 of the Constitution, channels local government funds through state governments, giving the latter significant leverage over how those funds are distributed. Although local governments are supposed to function as independent entities, they remain heavily reliant on state directives and financial approvals. Thus, in practice, local government autonomy in Nigeria is partial at best. The need for genuine local government autonomy in Nigeria cannot be overstated. It is rooted in the principles of democratic governance, effective service delivery, fiscal decentralization, and participatory development.

“Firstly, autonomy enhances democratic participation by bringing governance closer to the people. Local governments that operate independently can better involve citizens in policy decisions, planning, and implementation. When councils are truly autonomous, citizens see themselves as stakeholders in governance, which fosters accountability and trust. For example, the Lagos State area councils’ study discovered that increased administrative discretion led to higher citizen satisfaction and improved grassroots participation in local projects.

“Secondly, local autonomy is vital for effective service delivery. Local councils are closest to the communities they serve and therefore best positioned to identify local needs, whether in health, sanitation, security, education, or infrastructure. However, when local governments depend entirely on state approval to implement projects, service delivery becomes slow and inefficient. In contrast, local governments with greater decision-making freedom can quickly respond to emergencies and implement developmental programmes. This was evident in the Abuja Municipal Area Council, where enhanced fiscal control enabled the timely execution of local development projects.

“Thirdly, fiscal autonomy strengthens financial efficiency and innovation. When local governments control their own revenue generation and expenditure, they are more likely to plan sustainably and invest in developmental projects that directly benefit their constituencies. It is evident that the lack of fiscal autonomy in Nigeria limits local governments’ ability to mobilize internal revenue through markets, motor parks, and property rates, forcing them to rely almost entirely on federal allocations.

“Finally, autonomy supports the federalist principle of decentralization, which is essential in a multi-ethnic and geographically vast nation like Nigeria. By empowering local governments, the central and state authorities are relieved of excessive administrative burdens, allowing each level to focus on its constitutionally assigned responsibilities. As Scholars argue, a truly autonomous local government system is the cornerstone of functional federalism and grassroots empowerment.

“The degree of autonomy enjoyed by local governments significantly shapes their capacity to deliver governance outcomes. Where autonomy exists, the impact has generally been positive; where it is lacking, the consequences have been largely negative.

IMV President, Aare Kola Olomide, in his welcome address, said the group had recorded remarkable progress in three years.

“IMV started as a small platform, but today it has grown into a strong voice for Ibadan indigenes, promoting culture, community development, and civic awareness.”