Interrogating the politics of fiscal federalism and performance of local government: a focus on Udi Local Government Council Nigeria

Abstract

The study examined fiscal federalism and the performance of Udi Local Government Council. The study adopted survey design, specifically descriptive research was adopted. Data were collected using questionnaire, focus group discussion. Secondary data was
generated from government records and Central Bank of Nigeria. The findings revealed among other things that lopsidedness in revenue sharing affects the performance of Udi Local Government Council. Udi local government, due to lack of adequate funding do
not meet its constitutional responsibilities. The undue interference by the state government has an adverse effect on the performance of Udi Local Government. The delay in release of statutory allocation affects the performance of Udi Local Government. Also the imperfection in 1999 constitution has hampered fiscal relation among the three tiers of government in Nigeria. The study recommends among other things that the1999 constitution should be reviewed to address the problems of the local government. The local Government authorities should participate in order for their opinion to be taken into consideration while formulating policies affecting the LG in Nigeria.. In order to put a stop to the causes of conflicts among the levels of government in Nigeria, government should provide a strategy for resource distribution. allocation formula, jurisdictional control and administrative control. And for  local government to function actively they need a full autonomy and financial independent. The Joint Account Allocation Committee (JAAC) should be abolished to enable the Federal Government remit the LG fund directly to various local governments in Nigeria. The study therefore concludes that for the local government to meet up with its statutory responsibilities, the current fiscal arrangement has to be reviewed.