DECENTRALIZATION, CITIZENSHIP, AND LOCAL EXCLUSION: FISCAL AUTONOMY AND THE POLITICAL ECONOMY OF GRASSROOTS DEVELOPMENT IN POST-2023 NIGERIA

Abstract

Decentralization is a popular idea that is believed to bring improved public service and sustainable growth that is both inclusive and natural. On the other hand, in the case of developing states, the degree to which it works depends mainly on the local political situation and the existing social order. One of the most notable achievements in the Nigerian judicial system has been a historic Supreme Court judgment in 2024 that gave local governments direct financial allocations. Each of the 774 Local Government Areas in Nigeria must now be directly financed to make local governance more effective by limiting state intervention. Nevertheless, this initiative is carried out in a very politicized setting that is at the verge of breaking apart due to the increase of ethnicity after the 2023 elections, and a citizenship policy that perpetuates a two, class system of indigenes and settlers. This paper illustrates how local financial independence, along with the indigene, settler systems, have an effect on the patterns of resource distribution and the provision of public goods and services. Through a mixture of a research paper on the local financial autonomy of LGAs in the South, West and North, Central zones of Nigeria and a theoretical framework based on Peter Ekeh's works "Two Publics" and a ground reality review, it is established that some of the scenarios created by financial autonomy exacerbated local elite capture and exclusion of so, called "long, term residents" who are defined categorically as "non, indigenes." This is evidenced by the findings on disproportionate capital expenditure distribution within wards, and qualitative viewpoints on local narratives about the justification for exclusion and rightful local belonging. The debate will continue on the proposition that if the idea of citizenship is not changed from one based on birth to one based on residency, it will result in local exclusion and development failure. The solution ends with a conclusion on residency, based citizenship and conditionality in the transfer of funds between different levels of governance