Home NO. 1 Paternal Federalism: Nigerian Financial Intelligence Unit and Local Government Financial Autonomy

Paternal Federalism: Nigerian Financial Intelligence Unit and Local Government Financial Autonomy

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Abstract

This paper examines the status of local governments in a federal set up which Nigeria’s founding fathers agreed upon to be the template of governance even before independence. This is because of the multicultural nature of the country which a federal system is best suited for. However, the practice of it in the country is a matter of political rhetoric. The theory has been twisted, counterfeited, corrupted and turned into the exact opposite of the ideals–unitary. This poses a threat to the capacity of the local governments to serve as centres of innovation and a veritable vehicle to drive development at the grassroots level. Data were gathered through primary and secondary sources and content analysed. The paper finds that there is a fundamental contradiction in the maintenance of local government consistent with a unitary government in a federal democracy. The paper also finds that the enactment of NFIU Act 2019 by the federal government amounts to encroachment on states autonomy without regard to the big picture –federalism which in our national context must be a two-tier federation. The paper therefore recommends that there is a need for constitutional amendment to resolve the ambiguities inherent in the 1999 Constitution of the Federal Republic of Nigeria (as amended) as to the true status of local government in the political structure of the country.

Authors: Taiwo Lawrence Olawoye, Akinsulure Adedoyin Olusegun