Financial information communication is a deterrent to mismanagement of funds and leads to transparency. The aim of this survey was to determine the effect of financial information dissemination by the local governments in Imo State, Nigeria on infrastructural development, empowerment of the citizens and their participation in developmental issues, and the local government’s transparency in the utilization of funds allocated to and generated by the local governments. Questionnaire was used in data collection while Statistical Package for Social Sciences (SPSS) was used for the analysis of the data and test of the hypotheses. Spearman Correlation statistics was utilized to test all the three hypotheses at 95% (0.05) significance level. Result was represented in discrete figures, percentages, graphs and tables. The research discovered that there is a positive interrelationship between financial information communication and infrastructural development, citizens’ participation and development. The research recommended that a body be empowered by the federal government to ensure that the local governments disseminate financial information to the citizens since it helps in development of the local governments.

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