Public Financial Management and Rural Development in Akwa Ibom State, Nigeria: Evidence from 2008–2017

Abstract

Public financial management is widely regarded as a key determinant of development outcomes in resource-dependent economies, yet the extent to which it translates into tangible rural development remains under-examined at the subnational level in Nigeria. This study investigates the relationship between public financial management and rural development in Akwa Ibom State between 2008 and 2017, focusing on whether the pace of rural development kept pace with the state's rising public budgets and expenditures. Anchored in John Rawls's Theory of Justice, the study adopted a historical/descriptive survey design, drawing a sample of 182 respondents from five public establishments in the state using proportional stratified random sampling. Data were collected through a structured questionnaire and analyzed using percentage tables and chi-square statistics. Findings show that the calculated chi-square value (9.75) was less than the critical value (21.03) at the 0.05 significance level, leading to the acceptance of the null hypothesis: the level of rural development recorded in Akwa Ibom State was not commensurate with the state's rising public expenditure over the period. The study attributes this gap primarily to the limited financial autonomy of local government councils under the State/Local Government Joint Account arrangement, which constrains the tier of government most directly responsible for rural development. The study recommends genuine financial autonomy for local government councils, diversification of revenue sources, and stronger accountability mechanisms to ensure that public expenditure translates more effectively into rural development outcomes.