Local Government Fiscal Autonomy and Its Impact on the Performance of Small and Medium Scale Enterprises in Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue III, March 2019 | ISSN 2454–6186

Local Government Fiscal Autonomy and Its Impact on the Performance of Small and Medium Scale Enterprises in Nigeria

Chijioke Basil Onuoha¹, Henry Ufomba^2
1PhD, Department of Political Science and Public Administration, University of Uyo, Uyo, Akwa Ibom State, Nigeria
²Department of Political Science and Public Administration, University of Uyo, Uyo, Akwa Ibom State, Nigeria

Abstract: – In the literature on the structure of government and its impact on development in the grassroot there is a resurgence in the focus on the role of Local Government as government in the grassroot level in stimulating economic activities that will significantly improve the general well-being of the populace and contribute to sustainable economic development. Situated within this focus, this study examined the impact of Local Government fiscal autonomy on the performance of Small and Medium Scale Enterprises (SMSE) in Nigeria. Using a questionnaire as instrument the study adopted a survey method and collected data from 248 entrepreneurs from the three senatorial districts of Akwa Ibom State in Nigeria. The correlation analysis of the data showed two insightful results-both the level of Local Government fiscal autonomy and its level of expenditure have significant impact on the performance and profitability of SMSEs. It therefore recommend for higher Local Government fiscal autonomy as an important step to stimulate inclusive economic activities and growth.

Keywords: Local Government, autonomy, small and medium sale enterprises, profitability, economic growth.

I. INTRODUCTION

One of the most recurring theme in the literature on grassroot governance and development administration in Nigeria is the crucial role of the Local Government as a pivotal agent of development. In fact since Nigeria’s independence in 1960 there exist an avalanche literature on the subject that attempts to examine the nexus between Local Government administration and economic development (Ekpe et al, 2008; Chijioke 2016; Anyebe, 2001; Obeta & Okide, 2010). This is so because since the Local Government is considered to be the closest administrative structure to the people it therefore has immediate interaction with citizenry and impact on their economic wellbeing (Aborisade, 1989).

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