Friday, 29 December 2017

NIGERIA’S PRESENT APPROACH TO LOCAL GOVERNMENT FUNDING: A CONDUIT FOR SIPHONING PUBLIC FUNDS




By Nnabugwu Chizoba (Sustainability Accountant/Development Practitioner)


Nigerians are unhappy, worried, disenchanted, dismayed and fade up with the present system of funding the local governments in Nigeria.

According to pundits, “the present system is not working. It is not only discouraging but, also manifestly pathetic. What we see mostly is tales of woes and revelations of very shocking dimensions. The problems range from poor funding to outright embezzlement of local government funds”.

Furthermore, the pundits quarried, Why are the Chief Executives of the various states bent on retaining the status quo even when it is obvious that it is not benefiting the people? The Chief executives swim in wealth at the expense of the masses. Is this not the reason for the visible state of infrastructural decay in the local governments?

This piece and reported responses of Nigerians is borne out of concern, arising from the obviously noticeable signs of abysmal economic performance and neglect of rural communities that has given rise to series of civil unrests and an upsurge in the list of rural-urban migrators. They are the effects of many years of mis-governance and worsened by current developments. This state of affair is common and exists at the various levels of government. However, the local government areas and their rural dwellers are the most affected.

The consequences of continuing with the Nigerian local government system, referred to as the third tier of government, the way it is presently structured, managed and run by state Chief Executives (Governors) are huge and wastefully so. By all intent and purpose, it is annoying, confusing and disgusting. It exists only to promote the dictates and wishes of self-imposed, self-serving and divisive tendencies and ulterior motive of not just demented individuals and social misfits but, those with foundational bondage.

For better insight, clarity of purpose and informed debate, it is important to point out here that the emphasis of this piece is basically, on the methodology adopted by the Federal and State Governments in the funding of Local Governments (LGs) in Nigeria. Thus, this discourse focuses specifically, on the procedure adopted in the disbursement of funds due and accruable to the LGs from the Federation Account.

The present arrangement is such that the money due to the local governments from the federation account is released via a joint Account with the state government where they (the LGAs) are located. Thereafter, the Governor, as the Chief Executive of the state, and as events has revealed, would determine what gets to each of the LGAs.

From lessons learn from the weaknesses of so many years of operating this system, it is obvious that this approach to local government funding is structurally defective, operationally ineffective and administratively lopsided. This assertion is apt and seen necessary, speaking largely within the context of the immediate environment, were as citizens, Nigerians find themselves. I am talking of the setting and above all attitudes and behaviours of a people (in this case Nigeria and Nigerians). Such is cardinal, taking into consideration, the fact, that outcomes and impact remain constant, strategic and essential determinants in assessing the performance of government laws, policies, and programmes, as well as leadership itself.

Since it is common sense and knowledge that laws, policies and rules take into account the environment where they operate, I wish to add that it is on this basis that they are adjudged good, bad, accepted or rejected. Suffice to say, therefore, that the concern of Nigerians on the system of local government funding is heightened by the events that occur in their environment regarding the management of local government funds. This explains succinctly why any matter that relates to the impact of local government on the life of Nigerians generates so much interest. These interests are discussed on daily basis around the street corners, market places, motor parks and village squares.

The negative effects of continued retention of the present system of local government funding in Nigeria include: rising cases of unemployment, poverty, hunger and squalor. Other undesirable consequences that arise from it are: low self-esteem, loss of skilled manpower, low capacity utilization, absence of discoveries, low rate of creativity and innovation, in addition to civil unrests and other vices.

Other discomforting narratives and negative outcomes include: financial recklessness, massive looting, project abandonment, terror and organized crimes that occur, regularly at very high cost and impact. Touting has been elevated to the position of prominence and abuse of office a norm and celebrated event.

As if the above consequences are not enough, citizens continue to witness the over flow of serious cases of abuses, harassment and intimidation of the electorate by the elected state Chief Executives, their appointees, friends, and relations. This is the fall out, expectedly, going by the quantum of financial resources, that ordinarily should go to the various local government councils, but which due to the skewed system find their way into the hands of the self-imposed state chief executives.

If not changed for better performance and urgently too, the implication is that LGAs by the reason of the above negative narratives exists purely for one purpose:

To serve as a source or a conduit for siphoning public funds by the governors, who use such resources to build personal empires, deepen their control over public funds and government structures, and promote criminality for easy and unfettered access to law enforcement agencies for cover and protections.

The ills are numerous. Lend your voice against them. Support LG Autonomy!

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