Local Government Sustainability in Nigeria: The Influence of Revenue Forecasting and Allocation

Abstract

This study examined the sustainability of local government in Nigeria based on the influence of revenue forecasting and allocation using a quantitative approach. The study adopted a purposive sampling technique of employees working within local governments in three selected local government areas within the Kwara Central Senatorial District in Nigeria. 256 respondents were finally used for the final analysis. The result showed that revenue forecasting is significantly related to financial stability while revenue allocation is also significantly related to enhanced service delivery in the local government system. All hypotheses were significant at p<0.05. The findings of the study underscored the significance of revenue forecasting by adopting robust forecasting techniques and utilizing accurate data to enhance revenue projections. Local government administrators can consider employing advanced forecasting models and leveraging technological tools to improve the accuracy of revenue estimates and strengthen financial planning processes. Also, the significant influence of revenue allocation on service delivery highlights the need for transparent and equitable resource allocation mechanisms.