Fiscal Policy and Local Government Administration in Nigeria

Opinions have varied on the utility of local government administration in promoting sustainable grassroots development. Scholars are apprehensive of the prevalence of high degree of corruption and systemic inefficiency at the local government. This paper evaluates the system of financial regulations put in place to curtail the degree of corruption at the local government level with a view to ascertaining the efficiency of its operation. A critical analysis of the inbuilt financial control mechanisms reveals that they are sidetracked by state and local government officials for selfish ends. The paper is analytical in nature and used the theory of revenue exaction to examine the dynamics of fiscal policy at the local government level. The paper frowned at the existence of municipal area councils and recommends the abolition of metropolitan councils, the creation of more rural based local government councils and the strict Copyright © IAARR 2014: www.afrrevjo.net 119 Indexed African Journals Online: www.ajol.info enforcement of fiscal laws as means of promoting fiscal efficiency and sustainable development at the grassroots