Assessing the Impact of Revenue Generation on Community Development in Gassol Local Government Area of Taraba State, Nigeria

This study investigates the impact of revenue generation on community development in Gassol Local Government Area of Taraba State, Nigeria, with emphasis on internally generated revenue (IGR) and statutory allocations (SA). The research was guided by two objectives, two research questions, and two null hypotheses. A survey research design was adopted, using the National Bureau of Statistics projected population of Gassol as the study frame. A sample was drawn using the Krejcie and Morgan table, and data were collected through a validated structured questionnaire. Reliability was confirmed with a Cronbach’s Alpha coefficient of 0.812, indicating high internal consistency. Both primary and secondary data were analyzed, with Multiple Regression employed to test the hypotheses. Findings revealed that both IGR and statutory allocations significantly and positively influence community development in Gassol LGA, though statutory allocations had a stronger effect due to the limited economic base of the area. The regression analysis confirmed that revenue sources are complementary in driving development outcomes. The study also highlighted challenges of low tax compliance, weak administrative structures, and heavy reliance on federal transfers, which constrain the capacity of the LGA to independently fund projects. Nonetheless, the results suggest that improved IGR mobilization, coupled with transparent and efficient use of statutory allocations, can strengthen grassroots development. The study concludes that sustainable development in Gassol requires a balanced fiscal strategy that optimizes internal and external revenue sources. It recommends stronger revenue mobilization, enhanced accountability mechanisms, and community participation in budgetary processes to ensure inclusive development.