STATE-LOCAL FISCAL INTER-RELATIONS AND ITS IMPACT ON DEVELOPMENT IN NIGERIA: A CASE STUDY OF OREDO LOCAL GOVERNMENT AREA , EDO STATE
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This study examines state–local fiscal inter-relations and their impact on development in Nigeria, with particular focus on Oredo Local Government Area of Edo State. The research explores the structure of fiscal federalism in Nigeria, emphasizing the allocation of financial resources between state and local governments and how these arrangements influence grassroots development. It identifies key challenges such as overdependence on statutory allocations, inadequate internally generated revenue, lack of fiscal autonomy, and excessive state control over local government funds through mechanisms like joint allocation accounts.
Using both primary and secondary data, the study assesses how these fiscal dynamics affect the provision of basic services, infrastructure development, and overall socio-economic growth in Oredo Local Government Area. Findings reveal that limited financial independence and irregular fund disbursement significantly hinder effective service delivery and development initiatives at the local level. The study also highlights issues of mismanagement, weak accountability systems, and political interference as major constraints to optimal utilization of available resources.
The study concludes that strengthening fiscal autonomy, enhancing revenue generation capacity, and promoting transparency and accountability in financial management are crucial for improving development outcomes at the grassroots level. It recommends policy reforms aimed at restructuring state–local fiscal relations, ensuring direct allocation to local governments, and building institutional capacity for efficient resource management.
Using both primary and secondary data, the study assesses how these fiscal dynamics affect the provision of basic services, infrastructure development, and overall socio-economic growth in Oredo Local Government Area. Findings reveal that limited financial independence and irregular fund disbursement significantly hinder effective service delivery and development initiatives at the local level. The study also highlights issues of mismanagement, weak accountability systems, and political interference as major constraints to optimal utilization of available resources.
The study concludes that strengthening fiscal autonomy, enhancing revenue generation capacity, and promoting transparency and accountability in financial management are crucial for improving development outcomes at the grassroots level. It recommends policy reforms aimed at restructuring state–local fiscal relations, ensuring direct allocation to local governments, and building institutional capacity for efficient resource management.
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