STATE GOVERNMENT INFLUENCE AND LOCAL GOVERNMENT FISCAL AUTONOMY IN NIGERIA: A STUDY OF SAKI WEST LOCAL GOVERNMENT, OYO STATE

Local government fiscal autonomy remains a major concern in Nigeria because state government influence over statutory allocations, budgetary decisions and internally generated revenue may restrict financial independence and effective service delivery. This study examined state government influence on local government fiscal autonomy in Saki West Local Government, Oyo State. Specifically, the study assessed the influence of state control over statutory allocations, interference in budgetary and expenditure decisions, and control over internally generated revenue. Fiscal Federalism Theory provided the theoretical foundation. The study adopted a quantitative cross-sectional survey design involving 100 respondents drawn from five administrative departments. Data were obtained through a structured questionnaire using a five-point Likert scale and analysed using descriptive statistics, Pearson correlation and ordinary least squares regression at a five per cent significance level. The supplied simulated results indicated significant negative relationships between statutory allocation control and fiscal autonomy (β = -0.358, p < 0.05), budgetary interference and fiscal autonomy (β = -0.188, p < 0.05), and internally generated revenue control and fiscal autonomy (β = -0.280, p < 0.05). The model explained 40.1% of variation in fiscal autonomy, while all three null hypotheses were rejected. The study concluded that perceived state financial control was associated with reduced local government fiscal independence. It recommended transparent statutory allocation procedures, greater budgetary discretion, clearly defined revenue powers, stronger financial accountability and effective implementation of constitutional reforms. These measures could strengthen local financial administration and improve grassroots governance, subject to confirmation through actual fieldwork and official financial records.