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

The availability of adequate funding is a major prerequisite of economic transformation of a local government area. This study examined the effects 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 determinants and parameters of rural economic development. It also examined the relationship between revenue generation and rural economic development as well as analyzed the constraints 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 statistical tools of percentages, frequency and table distributions were used to describe the socio-economic characteristics of the respondents. Logit Regression Analysis was used to evaluate the effects of revenue generation on rural economic development at level of 95% confidence interval as well as Regression Analysis on the constraints militating against revenue sourcing in the study area. Findings revealed that the computed F-statistic with corresponding probability value (F 5, 26) = 364.23, Prob> F = 0.0002 and for the Adjusted R2 (0.0870) and ( = 0.84534). This indicated that revenue generation has significant relationship or positive effects on economic 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 synergy between revenue sourcing and socio-economic transformation so that rural economic development can be stimulated and sustained. The government should ensure greater accountability and transparency on the part of its officials as also their virtues of integrity and transparency would invariably affect and effect socio-economic and rural transformation of the study are