Effect of internally generated revenue on rural development of local government areas in Enugu State

Abstract

In the study, we investigated the effect of Internally Generated Revenue on development of local Government Areas in Enugu State. The specific objectives were to: examine the effect of internally-generated revenue on the provision of road infrastructure, establish the effect of internally-generated revenue on the provision of educational infrastructure and determine the effect of internally-generated revenue on the provision of water infrastructure by Local Governments Authorities in Enugu State. The research utilized survey research design. The population of the study was 820,200. Taro Yamane formula was used to determine the sample size of 625. The collected data for the study was analysed through mean score. The Chi-square statistical analysis was applied in testing the hypotheses. The findings revealed that: Internally-generated revenue had a significant effect on the provision of road infrastructure and educational infrastructure while revealing insignificant effect on the provision of water infrastructure by Local Governments Authorities in Enugu State (where: D.F = 9; 2cal = 357.230, p = 0.00, D.F = 16; 2cal = 258.945, p = 0.00 and D.F = 16; 2cal = 181.629, p = 0.11). The study recommended among others that the local government administration in Enugu State should continue to increase its aggregate revenue mostly from internally generated revenue base, since only revenue from internal sources can boost their income given the dwindling allocations from the federation account, this will enable them to provide more road infrastructure in their domain.