Creating local governments globally emanates from the desire to facilitate development at the grassroots level. The significance of local government autonomy is a function of its ability to generate a sense of belongingness, bringing government close to the people. In Nigeria, where the federal structure necessitates the delegation of responsibilities to various tiers of government, the complete autonomy of local governments is paramount for the country’s socio-economic development.
Local governments are established for several purposes, the most relevant being the idea of bringing government and development to the grassroots level. This has provided opportunities for people to enjoy the dividends of democracy. Local government autonomy in Nigeria is crucial as it empowers local councils to address specific needs, leverage local resources, and engage the community in development initiatives.
Section 7 of the Constitution of the Federal Republic of Nigeria states that “The system of local government by democratically elected local government councils is under this Constitution guaranteed; and accordingly, the Government of every State shall, subject to section 8 of this Constitution, ensure their existence under a Law which provides for the establishment, structure, composition, finance, and functions of such councils.”
Subsection 3 of that provision crucially highlights the economic implication of an autonomous local government system. “It shall be the duty of a local government council within the State to participate in economic planning and development of the area referred to in subsection (2) of this section and to this end an economic planning board shall be established by a Law enacted by the House of Assembly of the State.”
Autonomous local governments play a critical role in ensuring effective governance and development. One primary advantage is its closeness to the people, which enables local governments to understand and address the unique needs and challenges of their communities. This proximity allows for tailored policies and programs that directly impact the lives of citizens, promoting a sense of inclusion and participation in governance.
Furthermore, local governments assist state and federal governments in implementing policies, especially in critical sectors like agriculture, which engages about 80 per cent of rural dwellers. By focusing on local agricultural initiatives, local governments can drive economic growth, increase food security, and improve livelihoods.
The autonomy of local governments has significant economic implications for Nigeria. First, it facilitates efficient resource allocation and utilization. Local governments, being closer to the people, are better positioned to identify and prioritize projects that have the most immediate and substantial impact on their communities. This localized approach to development ensures that resources are used effectively, reducing wastage and improving outcomes.
Autonomous local governments also enhance economic planning and data collection. Accurate data on population demographics, housing, birth and death rates, and other vital statistics are essential for effective economic planning. Local governments are ideally placed to collect this data, providing a reliable basis for planning and policy-making. The absence of such data on a satisfactory basis has historically constrained Nigeria’s economic planning. Improved data collection at the local level can therefore lead to more informed decision-making and better-targeted economic policies.
Additionally, local government autonomy promotes local economic development by encouraging small and medium enterprises (SMEs). With the authority to implement policies tailored to local needs, local governments can create an enabling environment for businesses to thrive. This includes providing essential infrastructure, facilitating access to finance, and supporting entrepreneurial initiatives. The growth of SMEs contributes significantly to job creation, poverty reduction, and overall economic development.
Moreover, autonomous local governments can foster better coordination and collaboration between the government and the governed. According to the federal government guideline of 1976, local governments are “to promote mutual undertaking and meaningful communication between government and the governed.” This role is vital in resolving conflicts and building trust between different segments of the community and the government. Boko Haram for example reportedly started as an ideology of a small group of aggrieved youths who felt that the government had abandoned and was far away from them.
Despite the evident benefits, achieving true local government autonomy in Nigeria faces several challenges, resulting from abuse by state governors. These include diversion and inadequate funding, political interference. It is commonplace for state governors to sack elected councils and impose caretaker committees.
According to Learn Nigerian Law, an online law publication, the case of Akan v AG Cross Rivers State dealt with the provision of section 7(1) where the Governor of the State had dissolved all the local government councils in the State and replaced them with caretaker committees, was challenged in Court. The Court held that such an act conflicted with section 7(1) of the 1979 constitution and thus was void. In Akinpelu v AG Oyo State, the learned trial Judge explicitly stated thus: “A fortiori, the setting up of a Caretaker committee to replace a democratically-elected Council is unconstitutional, illegal and ultra vires…” Also, the publication cited Balogun v AG Lagos State where the Court construed the provision of section 7(1). The case of Etim Akpan & Ors v Hon. Peter Umah & Ors also stood to show that the creation of a caretaker committee in place of a democratically elected council is void ab initio based on the provision of section 7(1).
Therefore, the recent Supreme Court ruling that the federal government should henceforth pay allocations directly to local government councils from the federation account is a step in the right direction, granting financial autonomy to Nigeria’s 774 local government areas.
Financial autonomy for local governments is vital for the socio-economic development of Nigeria. It enhances efficient resource allocation, promotes economic planning and data collection, supports local economic development, and fosters better government-community relations. Adequately enforcing the recent ruling of the supreme court of Nigeria will unlock full potential of grass root development and contributing to the overall economic growth of Nigeria.