FEDERAL ALLOCATION AND CAPITAL EXPENDITURE OF ENUGU STATE GOVERNMENT NIGERIA, 2011-2020

Abstract

This paper examined the effect of federal allocation on capital expenditure of Enugu State Government Nigeria, 2011-2020. The study focused on three specific objectives. It examined the extent federal allocation influence the total capital expenditure of Enugu State; the effect ofthefederal allocation on health sector in Enugu State; and the effect of the federal allocation on education sector in Enugu State. The study adopted a descriptive survey research design and used structured questionnaire for data collection. The population of the study was 1,248,392 people of six selected local governments in Enugu State, while the sample size of 400 was determined using Taro Yameni formula. Purposive sampling technique was adopted in the selection of respondents to the questionnaire. Three hypotheses drawn from the objectives were tested using chi-square (%) analytical tool. The findings of the study were descriptively discussed using quantitative and qualitative data. The study revealed that federal allocation influenced the total capital expenditure of Enugu State to a high extent between 2011 and 2020. It was discovered that federal allocation has significant positive effect on health sector in Enugu State. Further finding also revealed that that federal allocation has no significant positive effect on education sector in Enugu State. The study recommended the need for increase in federation allocation to states in relation to the amount due to federal government and for the Enugu State Government in particular to make proper use of the federal allocation in capital expenditure especially in critical sector in the state. The study also recommended the need for Enugu state government to allocate more capital funds to the education sector to provide educational facilities and renovate the dilapidated structures especially in primary and secondary schools in rural areas and beyond so as to meet the increasing educational needs of the people at all levels of education, among other recommendations. In conclusion, the study underscores that higher statutory allocation to states might culminate into significant improvement in the level of capital expenditure in critical infrastructure.