Local governments in Nigeria are established to bring governance closer to the grassroots and
enhance development. However inadequate finance has undermined the ability of local
governments to achieve these goals. This study, therefore, investigates the link between statelocal government joint account system and financial autonomy of local government with focus
on Anaocha Local government council between 1999 and 2012. The study adopted the
qualitative descriptive method while data collection was effected through the secondary sources.
The findings show that poor utilization of revenue by council officials accounted for state-local
government joint account system. It further revealed that the state-local government joint
account system have undermined the financial autonomy of Anaocha local government of
Anambra state. It therefore recommends the need to amend Section 162 of the 1999 constitution
with a view to scrapping the state-local government accounts in order to ensure the financial
autonomy of Anaocha local government.
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
Nigeria as a sovereign nation operates a federal system of government i.e. the
federal government, state government and the local government councils. Onwo (1992)
Observed that each level of the three tiers of government derive its powers not from the
magnanimity of the central government but from the constitution; each level of government has
defined responsibilities assigned to it by the constitution. The implication of this is that the three
segments of governments are mutually interrelated in a unified effort to make life worth – while
for the masses.
Indigenes of the local government are desirous of enjoying modern facilities, improved
means of transportation, such as good road network and mass transit transport services. These
desires are in line with stated objectives of the local government such as construction and
maintenance of roads, provision of health services such as maternity homes, health centers,
sanitization, provision of primary education and many others – as sponsored by the federal
military government. The federation (Nigeria) year’s book of 1983 outlined the aims of the local
government system in the country. According to that document, one of the cardinal aims of the
local government system is to make appropriate services and development activities, responses
to local wishes and needs by delegating authority to local representative bodies.
The citizens expect the council to excel in developmental activities. They would like to
please the community or communities in the local government area through the provision of
functional feeder roads and public utilizations.
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