Published September 30, 2026 | Version CC-BY-NC-ND 4.0
Journal article Open

Impact of Funding Constraints on Rural Development Project Implementation in Owo Local Government Council, Ondo State, Nigeria

Authors/Creators

  • 1. Department of Business Administration and Management, Federal Polytechnic Ile-Oluji, Ondo State.

Contributors

  • 1. Department of Business Administration and Management, Federal Polytechnic Ile-Oluji, Ondo State.
  • 2. Department of the Office of the Registrar, Federal Polytechnic Ile-Oluji, Ondo State.
  • 3. Department of Cooperative Economics and Management, Federal Polytechnic Ile-Oluji, Ondo State.

Description

Abstract: This study investigated the impact of funding constraints on rural development project implementation in Owo Local Government Council, Ondo State, Nigeria. The research was driven by concerns over persistent project delays, abandonment, and poor-quality outcomes resulting from inadequate and irregular funding. The study adopted a quantitative research design and used data collected from 237 respondents selected from the Owo Local Government workforce. The study obtained primary data through structured questionnaires and analysed them using descriptive statistics and regression analysis. The findings revealed that federal allocation remains the primary source of funding for rural development projects, accounting for 56.5% of total funds, followed by state government support and internally generated revenue. However, the study found that funding inadequacies and irregular fund disbursement significantly hinder project planning, execution, and sustainability. Regression results indicated that funding (β = 0.674, p < 0.001) and planning and monitoring (β = 0.291, p = 0.005) had significant positive effects on project implementation, while tenure uncertainty was statistically insignificant. The study concluded that overdependence on irregular government allocations, poor financial management, and weak internally generated revenue are key factors limiting rural development performance in Owo Local Government. It recommended strengthening local revenue generation mechanisms, ensuring timely and transparent disbursement of funds, and improving financial accountability systems to enhance the effective implementation and sustainability of rural development projects.

Files

A189613010926.pdf

Files (588.7 kB)

Name Size
md5:dd3fd88651aec891eef67fdae167aad8
588.7 kB Preview Download

Additional details

Identifiers

DOI
10.35940/ijmh.A1896.13010926
EISSN
2394-0913

Dates

Accepted
2026-09-15
Manuscript received on 31 July 2026 | First Revised Manuscript received on 21 August 2026 | Second Revised Manuscript received on 02 September 2026 | Manuscript Accepted on 15 September 2026 | Manuscript published on 30 September 2026.

References

  • Abdulkadir, I. (2024). An assessment of the Role of Local Government in Rural Transformation in Kaltungo LGA. ResearchGate .net/publication URL: https://www.researchgate.net/publication/ 381842972_
  • Adekoya, A. A. (2023). Public Financial Management in Nigeria: The Goals, Concepts, Legal and Institutional Framework and Reforms for Good Governance. International Journal of Management and Economics Invention, 09(05), 2935-2946. DOI:10.47191/ijmei/v9i5.01. https://www.researchgate.net/publication/370526619
  • Adewale, T., & Ojo, B. (2021). Rural infrastructure and sustainable development in Nigeria. Journal of Development Policy and Practice, 8(2), 45–59. https://www.ijtsrd.com/papers/ijtsrd30943.pdf
  • Ali, Y., & Ali, M. A. (2025). Challenges of Financial Autonomy in Nigerian Local Governments and their Implications for Rural Development in Kogi State, Nigeria: A Focus on Idah Local Government. https://www.researchgate.net/publication/389549076
  • Aminu, Y., Titus, O., Abdulrahman, A., & Sani, A. N. (2022). Challenges and Prospects of Financial Management in Local Government Councils in Nigeria. IJRDO – Journal of Business Management, 8(12), 32–39. DOI: 10.53555/bm.v8i12.5308, License CC BY-NC-ND 4.0.
  • Devika, D. & Dona, P. (2026). The Effect of Local Taxes and Intergovernmental Transfers on Community Welfare: Evidence from Indonesia, 2022-2024. The International Conference on Sustainable Economics Management and Accounting Proceedings 2:1147-1154. DOI10.32424/icsema.v2i1.747 License's URL: https://www.researchgate.net/publication/412059963,Doi: 10.57233/Gujeds.V7i1.02. License: CC BY 4.0, https://www.researchgate. net/publication/412797157
  • Emmanuel, D. L., Ibrahim, T. B. & Ladi, J. (2025). Contemporary Issues in Economic Diversification of Local Government Administration in Nigeria. International Conference on Improving Local Governance and Empowering Traditional Institutions: Innovative Policies for Sustainable Development. Ahmadu Bello University, Zaria, Nigeria. Book of Proceedings (Pages 23–38). URL: https://www.researchgate. net/publication/400252488
  • Michah, C. O., Etim, R. & Udeme, O. E. (2021). An Empirical Evaluation of Budget Implementation on Economic Development in Nigeria. Journal of Asian Multicultural Research for Economy and Management Study, 2(3):102–116, DOI:10.47616/jamrems.v 2i3.138. License. CC BY -SA 4.0.URL: https://www.researchgate.net/publication/352224378_An_Empirical_Eva luation_of_ Budget_Implementation_on_Economic_Development_in_Nigeria
  • Moses, I. O., Okonkwo, S. M. & Michael, M. C. (2020). Rural Infrastructure and Sustainable Development in Nigeria. Researchgate.net/publication https:// www.researchgate. net/publication/341272435.
  • Musgrave & Oates (1959,1972) Fiscal Federalism Theory. https://fiscalfederalism.eu/wp-content/uploads/. Works remain significant; see the declaration
  • Oluwatobi, S. O., & Ogunlana, A. E. (2022). Financial management and rural project execution in Ondo State local governments. Journal of Contemporary Governance Research, 10(1), 73–89.
  • Oseji, A. S. & Baruwa, O. Y. (2026). Interest Rate Transmission, Capital Market Development, And Economic Growth in Nigeria: Evidence from A Structural VAR Framework. Gusau Journal of Economics and Development Studies 7(1):30-51. https://www.researchgate.net/publication/412797157
  • Pfeffer & Salancik (1978). Resource Dependency Theory. https://www.researchgate.net/publication/228378265. Works remain significant; see the declaration
  • Udo, S. E. & Eno, G.U. (2024). Capital Expenditure Budgets and Infrastructural Development Cost in Coastal Local Government Areas in Akwa Ibom State. URL: https://www.researchgate.net/publication/377572777
  • Ugo, C. O. & Zephaniah, O. E. (2023). Issues and Failure of Infrastructure Project Implementation in Nigeria. URL: https://www.researchgate. net/publication/ 375434430
  • Ukwumonu, O., Patrick, D. O., & Matthew. (2021). An appraisal of the crux of community development in Nigeria. URL: https://www.researchgate.net/publication/354654300
  • United Nations Development Programme (UNDP). (2020). Human Development Report. The next Frontier: Human Development and the Anthropocene. UNDP Publications. https://hdr.undp.org/content/human-development-report-2020
  • World Bank. (2020). Financing rural development in Africa: Challenges and strategies. Washington, D.C.: World Bank Publications.
  • World Bank. (2020). Rural development and inclusive growth in subSaharan Africa. Washington, DC: World Bank Publications.
  • Yusuf, K. (2025). Sustainable Financing Gap in Developing Countries: Policy Recommendations. In book: Climate finance transition (pp.115– 134), Ed. 1. Chap 5, Publisher: Ideal Kültür Akademi. URL: https://www.researchgate.net/publication/399724237