ROLE OF LOCAL GOVERNMENT IN ECONOMIC DEVELOPMENT: A CASE STUDY OF EGOR LOCAL GOVERNMENT AREA, EDO STATE, NIGERIA

This study examines the role of local government in promoting economic development at the grassroots level, using Egor Local Government Area of Edo State, Nigeria, as a case study. The primary objective was to assess the developmental contributions of Egor LGA, identify challenges affecting its financial performance, and evaluate strategies for improving its internally generated revenue (IGR) to foster sustainable growth. Both quantitative and qualitative methods were employed. Data were collected through structured questionnaires administered to 138 respondents and supplemented with interviews. The data were analyzed using descriptive statistics such as frequencies, percentages, and mean scores, while thematic analysis was applied to qualitative a responses. Findings revealed that Egor Local Government has made meaningful contributions to grassroots economic development through the provision of infrastructure, income generation, and employment creation. However, the study identified inadequate funding, corruption, political interference, and weak revenue mobilization as major obstacles hindering effective performance. It also established that IGR plays a critical role in promoting fiscal sustainability and reducing dependence on statutory
allocations. Furthermore, innovative sources of revenue, such as outdoor signage and advertisement levies, were found to offer promising opportunities for expanding the financial base of the local government. The study concludes that Egor Local Government has the potential to drive inclusive and sustainable economic development if structural and administrative challenges are effectively addressed. It recommends enhanced financial autonomy, improved transparency and accountability, staff capacity building, community participation, and public-private partnerships as key strategies for strengthening local governance and achieving long-term development goals.