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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Urban Local Government Finance in Nigeria: The Case of Lagos Municipal Area
Author:Olowu, Dele
Periodical:Public Administration and Development
Geographic term:Nigeria
Subjects:local government reform
municipal government
local finance
Development and Technology
Economics and Trade
Politics and Government
Urbanization and Migration
External link:https://doi.org/10.1002/pad.4230120103
Abstract:One of the most important results of the global reform of local governments in Nigeria in 1976 was to initiate a progressive increase in the amount of monetary transfers to local governments (LGs) by federal and State goverments (especially the former). The proportion of federally collected revenues devoted to LGs increased rapidly from less than 2 percent in 1976 to 15 percent in 1990. This has enabled Nigerian LGs to play a more visible role in total public expenditures. On the other hand, huge federal transfers have led to sharp declines in absolute and relative terms in locally generated revenues. The two Lagos municipalities (Lagos Mainland and Lagos Island) are able to generate up to 50 percent of their total revenues. In contrast, the average for all local governments in the country is 4-5 percent. The relatively large internal revenue sources in the two Lagos municipalities results in generous surpluses, which they are able to channel into capital development or special project expenditures. The single most important internal revenue source is the property tax, which is not even collected in some other large cities, such as Kano, Ogbomosho and Sokoto. Bibliogr., notes, sum.