Revenue Allocation and Development Outcomes Across Urban Communities in Enugu Metropolis

Revenue allocation mechanisms at the sub-national level play a decisive role in shaping the distribution of development infrastructure and public services across urban communities. This study examines how revenue allocation patterns have influenced development outcomes in three distinct communities in Enugu Metropolis, specifically Coal Camp, New Haven, and Independence Layout, exploring disparities in infrastructure provision, sanitation services, and road maintenance. The study is grounded in the Fiscal Federalism Theory, which holds that the efficiency and equity of public service delivery depend on the appropriate assignment of taxing and spending responsibilities across government levels. A descriptive survey research design was adopted. The population included residents of the three communities, ward councillors, and local government development officers, from which 270 respondents were drawn using stratified random sampling. Data were collected through questionnaires and field observation, and analysed using descriptive statistics and analysis of variance. Findings reveal significant inter-community disparities in infrastructure quality, with low-density areas recording better service outcomes than high-density communities. Unequal allocation of local government capital budgets and political considerations in project siting were cited as key explanatory factors. The study concludes that revenue allocation inequities perpetuate development disparities across Enugu urban communities. It is recommended that the relevant LGA adopt a needs-based capital expenditure allocation framework to ensure equitable infrastructure investment across all communities.

Keywords: Revenue Allocation, Development Outcomes, Fiscal Federalism, Urban Communities, Enugu