Fiscal Federalism and Local Government Finance in Bauchi State: An Assessment of Revenue Allocation and Development Spending

This study assesses the impact of fiscal federalism on local government finance and development spending in Bauchi State, North East Nigeria. Local governments in Nigeria are constitutionally recognized as the third tier of government, yet they continue to face severe financial constraints arising from overdependence on federal allocations and the erosion of internally generated revenue. Using a documentary analysis and survey approach, this study collects data from finance officers, budget documents, and annual reports across five selected local government areas in Bauchi State over a period of five years. The research is guided by the Fiscal Federalism Theory, which posits that decentralized fiscal systems can improve resource allocation efficiency when local governments possess adequate autonomy. Data analysis involves trend analysis and descriptive statistics. Secondary data is drawn from the Revenue Mobilization Allocation and Fiscal Commission reports and the Bauchi State Ministry of Local Government and Chieftaincy Affairs. The study examines patterns of allocation, expenditure priorities, and development project completion rates. Preliminary expectations suggest a weak link between statutory allocations and measurable development outcomes due to administrative inefficiencies and political interference. Recommendations include strengthening local government autonomy, improving internal revenue systems, and enforcing accountability in public expenditure management at the grassroots level. Keywords: Fiscal federalism, local government finance, revenue allocation, development spending, Bauchi State.