Institutionalising a Community‑Based Development Finance Framework in Offa, Kwara State, Nigeria

Abstract

For decades, financing of development in Offa has faced a number of challenges. Key among them is excessive reliance on statutory allocations and a non-functional system for collecting internally generated revenue (IGR). This study examines the sources and means of financing development in Offa town and assesses their ability to address the community’s expanding socio-economic demands and development. Based on available secondary data, the research used content and descriptive analysis to highlight Offa’s current hybrid financing model, which combines statutory allocations, IGR, international assistance, federal and state interventions, and community-driven self-help initiatives. The findings indicate that persistent funding shortfalls stem from an overdependence on volatile statutory transfers, inefficient IGR collection methods, administrative hindrance, and irregular contributions from the diaspora impede the town’s sustainable development efforts. The study propounds a financing model from household units (Odede) within compounds (Ile) in Offa to complement the existing sources of funds for development. Relying on local cultural norms and trusts, this model calls for obligatory annual contributions from every household within a compound. The levy would be managed through trusted traditional and civic organisations to ensure legitimacy and accountability. Designed to strengthen fiscal self-reliance, encourage civic responsibility, and provide a stable stream of local revenue, this model aims to create a virtuous cycle of mutual trust, local investment, and transparent governance. The study concludes that, if implemented with universality, fairness, and transparency, the model could serve as a replicable, participatory model for Offa and other communities.