Strategies for Effective Management of Public Funds at Local Government Level in Nigeria

The paper examined the strategies for managing public funds at local government level. Local government has been perceived as a panacea for the diverse developmental issues confronting Nigeria’s diverse people with multiplicity of culture and there are 774 local governments in Nigeria. The concept of local government and management was discussed. Reasons for the establishment of local government were highlighted amongst which are to bring governance closer to the people, for administrative convenience, to ensure resources are effectively mobilized. Sources of local government funds were deliberated which include internal and external sources. The paper also discussed the strategies for effective management of local government funds like the budgeting, rational strategy, incremental strategy and zero based budgeting amongst other. Challenges for managing local government funds were enumerated amongst others autonomy, lack of qualified staff, state governor’s interference and corruption. Some recommendations given were full autonomy to the local government, employment of qualified staff, transparency and accountability, strict adherence to the budget provisions amongst others.