Decentralization and Local Government Autonomy: Assessing Governance at the Grassroots Level

In democratic societies, decentralization is not merely an administrative arrangement — it is a cornerstone of inclusive governance. At its heart lies the principle that local governments should serve as the closest tier of authority to the people, empowered to respond swiftly and efficiently to community needs. In Nigeria, however, this vision remains largely aspirational.

The recently concluded local government elections in Lagos State on May 11, 2025, underscore both the opportunity and crisis of grassroots governance in the country. Despite the constitutional guarantee of democratically elected local councils, the reality on the ground often reflects weak autonomy, poor accountability, and limited public engagement.

Our previous article demystifies the concept of autonomy in public governance, exploring its benefits and significance. It also highlights the challenges that arise when autonomy is poorly implemented and draws lessons from case studies that other countries can learn from.

This current article examines the state of local government autonomy in Nigeria through the lens of constitutional provisions, recent local elections in Lagos, and global best practices. It offers policy recommendations for achieving genuine decentralization and strengthening grassroots governance.

What the Constitution Says;

The 1999 Constitution of the Federal Republic of Nigeria (as amended) affirms in Section 7(1) that:

The system of local government by democratically elected local government councils is under this Constitution guaranteed; and accordingly, the Government of every State shall, subject to Section 8 of this Constitution, ensure their existence under a Law which provides for the establishment, structure, composition, finance and functions of such councils

Further responsibilities of local governments are detailed in the Fourth Schedule, which includes oversight of primary education, local roads, sanitation, birth and death registrations, and market regulation. The National Assembly and State Assemblies are also mandated to provide statutory allocations to local councils from the Federation Account.

Despite these constitutional provisions, local governments in Nigeria often operate with significant influence from state governments — reflecting a structural dynamic that can limit the full realization of decentralized governance.

Lessons from the Lagos LG Elections

The 2025 local government elections in Lagos were marked by low voter turnout, limited voter engagement, and concerns about the competitiveness of the electoral process — challenges that have persisted across local elections in Nigeria. While the All Progressives Congress (APC) maintained its position in most LGAs and LCDAs, a broader concern revolves around public perceptions of local councils as lacking effectiveness and autonomy.

These perceptions stem, in part, from the prevailing governance structure in which state governments play a dominant role in local administration — particularly in areas such as funding and appointments. Mechanisms like the State-Local Government Joint Account have, in practice, constrained the financial independence of local councils, often leaving them reliant on state-level decisions for basic operations.

The Case for Genuine Decentralization

True decentralization goes beyond decongesting administrative burden — it involves:

• Devolving authority, not just responsibility.
• Empowering local leaders to make and implement decisions.
• Ensuring direct accountability of local officials to their constituents.

In countries where decentralization works, these elements are non-negotiable.

Global Best Practices to Emulate

Effective decentralization thrives on constitutional clarity, financial autonomy, and citizen participation. The following countries offer instructive models for Nigeria’s reform journey:

🇮🇳 India — Constitutional Empowerment and Fiscal Decentralization

India institutionalized local governance through the 73rd Constitutional Amendment Act (1992), which created a three-tier system of Panchayati Raj Institutions (PRIs):

• Gram Panchayats at the village level
• Panchayat Samitis at the block level
• Zilla Parishads at the district level

Key features:

• Constitutional status for local governments with legally defined functions.
• Direct elections every five years.
• State Finance Commissions mandated to recommend financial allocations.
• Reservation of seats for women and marginalized groups (SC/ST).
• Devolution of 29 functional responsibilities, including agriculture, rural housing, education, health, and sanitation.

Lesson for Nigeria: Embed local government autonomy into the constitution with clear mandates and institutional mechanisms for fiscal devolution.

🇿🇦 South Africa — Local Governments as a Sphere of Government

The 1996 Constitution of South Africa recognizes local government as one of three distinct but interdependent spheres — alongside national and provincial governments — not merely an administrative extension.

Key strengths:

• Municipalities have constitutionally protected revenue sources, such as property taxes, service charges, and intergovernmental grants.
• The Municipal Systems Act (2000) and Municipal Finance Management Act (2003) set out planning, budgeting, and transparency standards.
• There are Integrated Development Plans (IDPs) that guide municipal activities and must include community input.
• Ward committees institutionalize citizen participation.

Lesson for Nigeria: Redefine local councils as a co-equal sphere of governance, with fiscal and administrative safeguards enshrined in law.

🇸🇪 Sweden — Local Taxation and Service Delivery Autonomy

Sweden’s 290 municipalities and 21 regional councils enjoy high levels of autonomy. They are directly responsible for:

• Education (including preschools and primary schools)
• Healthcare and elderly care
• Local infrastructure and public utilities

Key features:

• Local income tax powers: Municipalities raise about 70% of their revenue through taxes levied directly on residents.
• A transparent equalization system ensures that all municipalities, regardless of wealth, can deliver basic services.
• Citizens participate through open council meetings, referenda, and local initiative rights.

Lesson for Nigeria: Introduce local taxation powers and streamline federal transfers to encourage service-driven local accountability.

🇷🇼 Rwanda — Performance-Based Decentralization and Accountability

Rwanda’s decentralization began in earnest after 2000 as a post-conflict reconstruction strategy. It emphasized performance, accountability, and citizen engagement.

Key mechanisms:

• Districts are the primary unit of service delivery and planning, with authority over local education, health, agriculture, and infrastructure.
• A performance-based grant system rewards local governments for transparency, participatory planning, and results.
• Imihigo system: A contract-based performance agreement signed annually between mayors and the president or prime minister, evaluated publicly.
• Strong citizen monitoring platforms like Community Score Cards and participatory budgeting forums.

Lesson for Nigeria: Adopt performance-based funding tied to measurable outcomes, and introduce structured citizen feedback systems.

These countries show that with constitutional backing, financial independence, and meaningful civic engagement, local governments can become powerful engines of development. For Nigeria, adapting such models requires bold legislative reform, institutional restructuring, and a shift in political will toward empowering the grassroots.

Recommendations for Strengthening Local Government Autonomy in Nigeria

1. Amend the Constitution to Guarantee Direct Funding
   Bypass the State-Local Government Joint Account and ensure direct allocation from the Federation Account to local councils with transparency frameworks.
2. Establish Clear Administrative and Fiscal Autonomy
   Define a minimum functional mandate for local governments across all states, backed by predictable revenue assignments and performance incentives.
3. Strengthen Local Electoral Integrity
   Reform state electoral commissions to become independent, professional, and accountable. Alternatively, consider the creation of a national body for local elections.
4. Mandate Citizen Participation Mechanisms
   Institutionalize town hall meetings, participatory budgeting, and open data practices to ensure councils are responsive to public needs.
5. Professionalize Local Bureaucracy
   Implement merit-based appointments and build capacity in planning, budgeting, and service delivery at the local level.
6. Implement Performance-Based Grants
   Introduce conditional fiscal transfers from the federal or state governments, tied to governance and service delivery benchmarks.

Conclusions

Local government in Nigeria should not be the weakest link in our democratic chain — it should be the strongest. With constitutional reform, institutional safeguards, and lessons drawn from successful models abroad, Nigeria can build a system of truly autonomous and accountable local governments.

Without such reforms, the promise of decentralization will remain unfulfilled, and grassroots governance will continue to be the missing piece in the country’s development puzzle.

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