EFFECT OF REVENUE GENERATION DIVERSIFICATION ON FINANCIAL MANAGEMENT PERFORMANCE IN NIGERIA METEOROLOGICAL AGENCY

Abstract

This study investigates the effect of revenue generation diversification on public financial management (PFM) performance in the Nigeria Meteorological Agency (NiMet), focusing on donor funding and international partnership, and is anchored on Resource Dependence Theory (RDT), which advocates reducing over-reliance on a single income source. Using a survey research design, data were collected from a stratified random sample of 356 out of 1,714 staff, with 331 valid responses analyzed through Ordinary Least Squares (OLS) multiple regression. The findings indicate a significant negative effect of donor funding and a significant positive effect of international partnership on PFM performance. The study concludes that while revenue diversification can support financial sustainability, the strategic design and implementation of donor fundings require reassessment to ensure alignment with institutional objectives. This study recommends optimizing international partnership funding to better support organizational goals and enhancing transparency and reinvestment mechanisms in donor funding. The implications suggest that public institutions must balance external income-generating initiatives with efficient internal revenue strategies to strengthen financial management performance.