Abstract

Abstract Nigeria operates a federal system of government and power is allocated to federal, state and local governments. Collaborative efforts was encouraged to promote socio-economic development. Unfortunately due lack of diversification of the economy and over concentration on crude oil, it now operates a monolithic economy. Federal government on monthly bases share the proceed to the three levels of government but ironically, nothing significant is shown for the huge allocations due to corrupt practises by public servant. Documentary data were obtained from published books, reputable journals, government publications, magazines, newspaper publications, internet sources and personal observations. The paper observed that corrupt practices is on the increase and are manifested through the state joint local government account, non-remittance of the contributive pension scheme, non-payment of salaries and allowances, collusion in the transaction of government businesses, lack of proper accountability, denial of statutory functions, basically the revenue generating items and overbearing influence of the state government. The paper concludes that local government is at the verge of total collapse if adequate measures were not taken to savage the situation. Therefore, it recommended that State Joint Local Government Account often regarded as Joint Allocation Account should be scrapped, and all statutory allocations to councils be credited to them directly. This demands that Section 162 (5, 6, 7 and 8) of the 1999 constitution of Nigeria as amended should be amended to guarantee direct access of the proceeds from the statutory allocations to the local governments. Again, the 5% share of the original 20% statutory allocation for the local governments should be preserved for the primary school teachers’ salaries and allowances. Anti-corrupt agencies should extend their search light to the third tier of government, while corrupt public servants and governors who siphoned local government funds should be prosecuted during and after their term in office to serve as deterrent to others.