Internally Generated Revenue and Infrastructural Development in Selected Local Government Areas in Oyo State, Nigeria

This paper aims to assess the impact of internally generated revenue (IGR) on infrastructural development in selected local government areas in Oyo State between 2010 and 2019 using a cross-sectional research design. Secondary data were sourced from the local government revenue records and other documents. Although the study population consists of all the 33 LGAs in Oyo State, the multistage sampling technique was employed to narrow the population to only 3 LGAs selected from each of the 3 senatorial districts in the State. The data collected were analysed through descriptive and inferential statistical methods, using Statistical Package for Social Sciences (version 21) and Microsoft Excel. The results revealed that IGR has no statistically significant contribution to infrastructural development in the selected LGAs between 2010 and 2019. The results also showed that, of the main sources of internal revenue in the LGAs, only revenue from local taxes has a near-absent impact or very low contribution to infrastructural development. This is evident given the extremely low revenue generated through local taxes and higher revenue collected from other sources. The study recommended that the LGAs' internal revenue base should be increased to generate more revenue to aid infrastructural development, local councils should be more enterprising, local authorities should devise better ways of creating awareness on the importance of local taxes among the rural dwellers, and, lastly, corruption and mismanagement of funds should be eradicated.