The Joint State Local Government Account System and Governance in Local Government Administration

Abstract

This study investigates the impact of the Joint State Local Government Account (JSLGA) system on governance in local governments, focusing on Esan West Local Government Area in Edo State, Nigeria. Utilizing a descriptive survey design, the research engaged 262 respondents selected from a population of 1,200 local government officials and stakeholders. Data were collected through a structured questionnaire employing a 4-point Likert scale, assessing perceptions of financial autonomy, transparency, and governance effectiveness. The analysis, conducted using SPSS version 21, included percentage analysis and correlation tests. The findings reveal a significant negative correlation between the JSLGA system and financial autonomy (r = -0.78, p < 0.01), indicating that increased state control diminishes local governments' financial independence. Furthermore, the analysis demonstrated a positive correlation between transparency in fund allocation and local governance effectiveness (r = 0.65, p < 0.05), suggesting that enhanced transparency fosters improved governance outcomes. Additionally, a positive correlation was identified between financial autonomy and governance effectiveness (r = 0.40, p < 0.05), supporting the notion that empowering local governments financially can lead to better service delivery. The study concludes that reforms in the JSLGA system are crucial to enhancing financial independence and transparency, thereby improving local governance effectiveness and enabling local governments to better address community needs. Recommendations include constitutional amendments for direct federal access to allocations, increased transparency measures, and greater financial autonomy for local governments.