EFFECTS OF REVENUE GENERATION ON RURAL ECONOMIC DEVELOPMENT IN OROLU LOCAL GOVERNMENT AREA (LGA) IFON OSUN OSUN STATE, NIGERIA

Abstract

The availability of adequate funding is a major prerequisite of economic transformation of a local government area. This study examines the effect of revenue generation  on rural economic development in Orolu Local Government Area,  Ifon-Osun, Osun state Nigeria, It identified the socio-economic characteristics of the respondents as main determinant  and parameters  of rural economic development. It also examined the relationship between revenue generation and rural economic development as well as analyzed the constrains military against the effectiveness of revenue generation in the study area. Structured questionnaire was used to collect data from 150(one hundred and fifty) respondents selected through systematic purposive sampling techniques in the study area. Descriptive statical tools of percentages, frequencies and table distribution were used to describe the socio-economic characteristics of the respondents. Logic Regression Analysis was used to evaluate the effect of revenue generation on rural economic development at the level of 95% confidence interval as well as Regression Analysis on the constraint militating against revenue sourcing in the study area. Findings revealed that the computed F-statistics with corresponding probability value (F  5,  26)  =  364.23,  Prob>  F  =  0.0002 and for the Adjusted R²  (0.0870) and (B  =  0.84534). This indicated that revenue generation has significant relationship or positive effect on economics development of the study area at p< 0.05. This paper recommended that government particularly at the local level should pay greater attention to the energy between revenue sourcing and socio-economic transformation so that rural economic development can be stipulated and sustained. The government should ensure greater accountability and transparency on the part of the officials as also their virtues of integrity and transparency would invariably affect and effect socio-economic and rural transformation of the study area.