Abstract:
The main objective of this research is to show how the traditional council government is financed and to re-examine the fiscal federalism currently being operated in Nigeria. How did the British Colonial Administration affect our traditional political system? What is the origin of traditional council government? How did the traditional council government led to the introduction of the present fiscal federalism in Nigeria? 'The researcher traced the origin of the traditional council government in Nigeria, the coming of the British Colonial Administrators, how these colonial administrators imposed warrant chiefs to those communities without a centralised traditional council government. The researcher ex-rayed how these warrant chiefs who proved corrupt and high-handed in the discharge of their duties led to resentment which led to the return to clan council system in these areas. The passive role to which the colonial officials subjected the clan councils and the native authority later constituted a point of political protest which led to the introduction of local government system through the local government ordinance of 1950. Research questions were raised and hypothesis formulated in the course of the research. Tables were built on the data collected and were also used in analysing the data. On the basis of the findings of this paper, the researcher put forward some recommendations which if adopted will improve the traditional council government finance and enable the government fully utilize the services of the traditional rulers especially in the area of collection of taxes. The researcher also made recommendation on how to improve the present fiscal federalism.