Annals of the Social Science Academy of Nigeria 1(1) 1992 DOI: 10.36108/ssan/2991.04.0190
LOCAL REVENUE AND SERVICES IN NIGERIA: THE CASE OF OGUN STATE LOCAL GOVERNMENTS
S.I. Okafor
ABSTRACT
This paper examines the links between the financial resources of local governments and the availability of local services. It also examines the ‘equalisation effect’ of grants from higher levels of government on resource disparities between local government areas. It was found that intergovernmental (financial) transfers do not necessarily eliminate need-resource gaps in local government areas. The existence of these gaps, in spite of grants from higher levels of government, implies that the allocation of grants negates an important objective of intergovernmental transfers, viz. to adjust for disparities in fiscal capacity among local jurisdictions caused by variations in resources, tax bases and population.