EVALUATING THE IMPACTS OF

LOCAL GOVERNMENT AUTONOMY

ON CONCEIVED TASK REFORMS

AND GRASSROOT DEVELOPMENT.

INTRODUCTION

In the heart of every successful democracy, there exist a government that is nearest to the people,

one that is able to listen to their needs directly, to respond and to deliver. Yet, in the absence of

any independent power, this level of government seems to be a mere administrative shadow

stifling the very progress they were meant to ignite. As nations aim for substantial task reforms

and meaningful grassroot development, the idea of local government autonomy becomes

relevant. According to Ikoni and Anyogu (2014), local government autonomy ‘refers to the

attribute that allows the local government substantial freedom and independence to function

without undue, indiscriminate and unbridled interference from an external authority and still

remain accountable’. Autonomy in the local government means the ability of the local

governments to manage local affairs within their areas of jurisdiction under the constitution as

tiers of government without unjustifiable encroachment by other tiers of governments (Idoko &

Obidimma, 2020). Local government autonomy can stimulate tax reforms and grassroot

development. The importance of tax reforms and grassroot development cannot be

overemphasized; tax reforms promotes the generation of revenue for government to spend on

important areas, while grassroot development ensures that the benefits of growth are distributed

to a large extent and improve the standard of living of the people. This essay serves to explore

the importance of local government autonomy as well as how it can contribute to the success of

tax reforms and grassroot development.

CONCEPTUAL FRAMEWORKS

For the purpose of clarification, it is necessary to evaluate some concepts in the context of this

discourse. Local government autonomy, which refers to the extent to which the local government

can make decisions independently without interference from the other tiers of government, has

various forms: fiscal, administrative, and political. Fiscal autonomy implies the ability for local

governments to have substantial autonomy in financial matters based on effective and reliable

income generation from within and outside its territory (Duru, 2001). Administrative autonomy

refers to the freedom of the local government to manage their own affairs in terms of personnel

management, financial management, and operations without undue intervention from higher

authorities. Political autonomy essentially refers to the ability of the local government to govern

itself. Section 7 of the 1999 Constitution of the Federal Republic of Nigeria states the existence

and functions of the Local Government of Nigeria. Task reforms refer to the reorganization of

tax policies to improve effectiveness, impartiality, and revenue generation in order to expand the

tax base and minimize corruption. Grassroot development is a community-oriented means to

development that centers on strengthening individuals at the grassroot level to take charge of

their own development; one of the hallmarks of this is local participation.

PERSPECTIVES FROM RELATED THEORIES

In order to understand the impact of local government autonomy, we need to base this discussion

on some theoretical frameworks that review how local government autonomy relates with tax

systems and development at the grassroot level. We take a look at the Decentralization Theory

and the Public Choice Theory. “Decentralization is the transfer of power, authority, or

responsibility for decision-making, planning, management, or resource allocation from the

central government to its field units, which include the local governments, district administrative

units and regional or functional authorities” (Rondinelli et al., 1983). A government system is

not said to be decentralized until it contains sub-levels of authority that are capable of making

independent decisions (World Bank, 1999, p108). The Decentralization Theory poses an

argument that a decentralized government system improves service delivery and allocation of

revenue. On the other hand, we have the Public Choice Theory. The Public Choice Theory

incorporates economic principles into political science. It explains that government actors are

usually self-interested and make decisions based on their interests. It suggests that local

governments are more likely to make decisions based on the choice of the general public, and

since the people are closer to them, they can be held accountable when it comes to matters of

taxation and local spending.

ROLE OF AUTONOMY IN TAX REFORMS

Local government autonomy plays an important role in determining the success or failure of tax

reform programs. When the grassroot government has fiscal independence, they are put in a

better position to implement reforms that can cater to local economic needs. This is achieved

through enhanced revenue generation, where local governments are able to identify unexploited

tax bases, set achievable rates, and implement compliance with greater efficiency. There is also

increased transparency and responsibility because communities are more able to observe and

monitor how local tax revenues are utilized, which promotes willingness for more members to

pay taxes. Autonomy also creates an avenue for innovations in tax administration, where local

governments may design new technologies and strategies that are considered too localized for

federal execution.
ROLE OF AUTONOMY IN GRASSROOT DEVELOPMENT

The idea of local government autonomy is critical in determining the success of grassroot

development in many regions, especially in a country like Nigeria. The key advantage of

autonomy in this regard is the ability of the local government to distribute resources and make

decisions that directly address local needs. When autonomy is present, the local government's

ability to control its finances independently, make decisions on budgeting, and execute

development programs can help provide urgent needs of the community, such as good roads,

access to primary health care facilities, and quality education. These are often overlooked in the

central government system. When the local government has full authority over its finances, it is

more likely to be held accountable by the people for proper use of resources. This reduces

corruption and misuse of public funds. Autonomy allows for improved citizen participation in

decision-making since local governments answer directly to the communities they serve. This

also fosters trust between the local government and citizens (Adewumi & Olatunji, 2021).

CHALLENGES

Despite the recognition of the local government as a tier of government, multiple systemic and

structural challenges continue to hinder their autonomy. Using Nigeria as a case study, these

challenges include state interference through the State Joint Local Government Account

(SJLGA). This program permits the state government to withhold local government funds,

thereby causing continuous dependence and undermining the local government's ability to plan
independently. The existence of constitutional overlaps also presents a major challenge. The

Nigerian Constitution, for instance, fails to clearly define the legislative and financial powers of

the local government. This creates an overlap in the responsibilities of federal, state, and local

tiers, which can result in conflict. Many local governments also do not have the expertise to

create and execute effective policies. This dearth of skilled individuals, poor data systems, and

lack of facilities limits the ability to manage resources, monitor projects, and properly enforce

tax laws. Also, in situations where local government officers are appointed based on loyalty to

state governors rather than merit, it limits accountability and misappropriates public funds

toward political appeasement.

THE WAY FORWARD

Having evaluated the importance of autonomy in the local government and the challenges which

presents an obstacle to the attainment of these merits, the next step in view will be to identify

plausible, sustainable and practical recommendations to make local autonomy possible. Again,

using Nigeria as a case study, the following approaches will prove very helpful in facilitating the

effectiveness of local government autonomy. Reforms should be made constitutionally and

legally. There should be an amendment of Section 162 in the Constitution to cancel the State

Joint Local Government Account and allow direct transfer of federal funds to the local

government. This helps to maintain a constant revenue flow and provides financial resources to

act independently. The functions of the local government should also be outlined clearly to

prevent functional overlaps with other tiers, especially the state government. Local governments

that are able to generate revenue without overtaxing citizens should be encouraged through

initiatives from the federal government, such as performance-based matching grants. This
promotes resource management and revenue generation without federal dependence. Security

should also be provided to protect revenue officers in order to promote safer mobilization of

revenue. Promotion of Geographic Information System (GIS)-based property registers for urban

local governments, which have successfully been piloted in parts of Lagos and Kaduna and also

a unified e-payment platform can help prevent cash leakages and promote revenue tracking.

Ward Development Committees (WDCs) and Community Development Associations (CDAs)

should be strengthened with small grants, which they can only access when they collaborate to

fund projects. Additionally, the media's promotion of series that educate citizens in the local

government on their functions is essential.

CONCLUSION

The local government is one of the three(3) tiers of government. The autonomy of the local

government system is very important for independent decision making capacity of this tier of

government. Autonomy presents major positive impacts, it's implementation being plagued by

various challenges. By adopting a systematic approach through practicable policy changes, local

government autonomy would be more than just an idea, but a working reality.
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