Concept:Since the 1976 reform, local government in Nigeria has depended mainly on statutory allocations from the federal government.
Explanation:The 1976 local government reform established a uniform three-tier system of government.
It recognised that local governments needed a guaranteed and stable source of revenue to provide basic services.
Internally generated revenue, such as local rates, levies, court fines and licences, is usually small and insufficient.
The reform therefore made federal statutory allocations the primary source of local government finance.
These allocations are paid from the Federation Account through the State Joint Local Government Account.
This ensures that local governments can carry out their functions even with weak internal revenue capacity.
Answer:The correct option is
D. the federal government.