Date Added: Jul 2009
State governments in Nigeria are saddled with a lot of responsibilities that are geared towards the development of their areas. To do this, they engage in real asset investments that are at times overwhelming, especially when compared with their limited financial resources. This problem of insufficient funding sources and over-dependence on external sources was investigated for the period 1984-2008 by this study using multiple regression analysis technique. From the paper it is found that Federal allocation and stabilization fund are significant in the financing of real asset investments at both 5% and 1% levels of significance.