THE EFFECT OF REVENUE GENERATION IN RURAL DEVELOPMENT IN NIGERIA (A CASE STUDY OF IHIALA LOCAL GOVERNMENT, ANAMBRA STATE)
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- NGN 3000
ABSTRACT
This study is on the effect of revenue generation on rural development. The study determined the general level of revenue generation in the Local Government Area under study by examining the two major sources (internal and external) of revenue available to local government in Nigeria. It also examined the relationship between revenue generation and rural development. The study used survey research method where data was generated through both primary and secondary source. The primary data was collected through the use of questionnaire in soliciting information from the respondents about the management of revenue generated and services delivered. The secondary data was collected through the Local Government annual estimates, treasurer’s reports, etc. Pearson chi-square was used for data analysis to show the relationship between effective management of revenue generation and level of rural development in the local governments. Pearson Correlation was also used to measure the relationship between the amount of revenue generated and rural development in the Local Government s. However, it was found that effective management of revenue generation positively impacted on the efforts of local government in promoting development. And there is a positive correlation between the amount of revenue generated and the level of services delivered. This means that the ability of local governments to provide effective services to people depends on its ability to generate revenue from its internal and external sources. This is achievable through proper collection and remittance of revenue by revenue collectors and financial discipline in budgeting processes. In line with the findings of the study it was recommended that more revenue sources should be identified and adopted in order to increase and improve the revenue base of the local governments. Property and tenement rate as potential sources of revenue generation should also be tapped fully to improve the revenue base of the local governments.
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