Benue State University, Makurdi

The Nigerian Financial Intelligence Unit (NFIU) and the Financial Autonomy of Local Governments in Nigeria: Issues and Challenges

UGBUDU, Martins Iorgbir^*

Abstract

The main objective of this study is to examine the implications of the financial guidelines issued by the Nigeria Financial Intelligence Unit (NFIU) on the financial autonomy of the Local Government system in Nigeria. It undertakes an historical survey into the reason for the initiation of the guidelines as well as the challenges to the realization of the goals of the NFIU guidelines by the third tier of government in the States. Anchored on the classical theory of federalism, the study which made use of primary and secondary data sources of information found out that apart statutory deductions, State governors have contrived and come out with different items using the State Joint Local Government Account to circumvent the NFIU's guidelines meant to enhance the financial autonomy of Local Government leadership. The study recommends among other things the scrapping of the State Joint Local Government Account through constitutional amendment and also the adherence to and practice of the principles of federalism by the federating units in the country.

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