Nigerian Journal of Banking and Financial Issues (NJBFI)

LEVERAGING REVENUE GENERATION AND CAPITAL PROJECTS DEVELOPMENT FOR ECONOMIC GROWTH IN ABIA STATE, NIGERIA (1993 - 2023)

Abstract

The study examined Revenue Generation and Capital Projects Development in Abia State. Ex-post factor research method design were adopted in the study. Time series were adopted.  Secondary sources of data was used in the collection of the data used for the analysis.  The study revealed the importance of revenue in the development of a state via investment in capital projects on health and Education in Abia state. Capital development projects were measured into Health Capital development projects and Educational Capital Development Projects. Auto regressive Distributed Lag Model Technique (ARDL) were used to analyze the data collected. The objectives of the study are to evaluate the effect of Revenue Generation (taxes, other revenue and Federal Allocation) on Health Capital Development project projects in Abia State, secondly to examine the influence of Revenue Generation (taxes, other revenue and Federal Allocation) on Educational Capital Development projects in Abia State. The findings revealed that Tax Revenue, and Federal Allocation have positive coefficient and insignificant effects on Health Capital Development projects in Abia State while Tax revenue, (OIGR) and Federal Allocation have positive coefficient and significant influence on Educational capital Development project in Abia State. This study concluded that Abia state investment is still low on Health and Educational sectors. They need fund to finance these projects and increase their level of investments towards Health and Educational projects in the state.