Revenue generation and rural development in Nigeria: a case study of Bende and Ikwuano local government area in Abia state

Abstract

In Nigeria, corruption has hindered the development of local government areas. This study critically evaluated tax collection as the source of revenue generation and its impact on rural development. In order to achieve this, multiple regressions were used to analyse the data. The results show that total tax collected has a positive relationship with revenue generated. The provision of social amenities has an inverse relationship with total tax collected. Granger causality test underscore the uni-directional causality from revenue generation and provision of social amenities. Therefore, all should endeavour to pay their taxes. Government should provide all the necessary amenities and make available financial services to the people. This will enhance their contributions to economic, social development and overall gross domestic product.. The implication is that there will be improved standard of living, self reliance and eradication of poverty in the country.