The bulk of local government revenue in Nigeria is derived from

Step 1: Analyze the question The question asks for the main (bulk) source of revenue for local governments in Nigeria.

Step 2: Explain the concept Local governments in Nigeria have several sources of income:

• Statutory allocations from the Federation Account: Under Section 162 of the 1999 Constitution, the Federation Account is shared among the Federal, State, and Local Governments. Local governments currently receive about 20% of the revenue (plus the share through the State Joint Local Government Account).
• Internally generated revenue (IGR): tenement rates, market and motor park fees, licences, fines, and so on.
• Grants and loans: these are minor and occasional.

Step 3: Evaluate the options

• A. The Federation Account: Correct. Most local councils depend heavily on monthly federal allocations, and in many councils these make up over 80-90% of total income.
• B. State allocations: States contribute a small portion (such as a percentage of their own internally generated revenue), but this is not the bulk.
• C. Market and motor park rates: These are real local sources, but they are small compared to federal allocations. Most councils generate little IGR.
• D. Loan facilities: Rarely used and not a major source.

Step 4: Answer The bulk of local government revenue comes from the Federation Account, so the answer is A.

Exam tip: When you see "bulk" or "major source" of revenue for a Nigerian local government, think "Federation Account allocation". Remember: Local councils eat from the national cake. Internally generated revenue is just the small change on the side.