INFLUENCE OF REVENUE ALLOCATION AND AVAILABILITY ON LOCAL GOVERNMENT ADMINISTRATION (A study of Obafemi Owode local government, Ogun state)

Abstract

The existence of Government primarily to provide services that will make life worth living. Local governments as third tier government are created to bring government closer to the people at the grassroots and for transformation of lives at the rural level. The purpose of this paper is to examine the Influence of revenue allocation and availability in local government administration; it examined the challenges of revenue allocation in Nigeria using Obafemi Owode South Local Government as a case study. The study was anchored on equity theory of motivation and economic theory of motivation. The research design was purely survey with questionnaire as instrument of data collection. The sample size determined for the study was 150 out of the total population of 240. Data analysis was done with the aid of SPSS-version 22. The data presentation involved the use of percentages, frequencies and Spearman correlation co-efficient. The study revealed that revenue allocated to local government was inadequate in view of enormous tasks it carries out and the major source of this revenue is the federation account through the federal government. The study also revealed that the internally generated revenue by local government could not keep abreast with enormous functions it performs. Hence, the study recommends that both federal and state governments should be more proactive in giving strong financial support to local government in order to improve its financial base for effective performance.