Abstract
The study focused on effect of revenue generation as a tool for infrastructural development in Nigeria. A study of Ayamelum Local Government (2015- 2023). With the specific objectives as: to identify potential revenue streams for infrastructural development in Ayamelum Local Government Area of Anambra State and toto determine the impacts of internally generated revenue on infrastructural development in Ayamelum Local Government Area of Anambra State. In line with the objective of the study, the researcher came up with three research questions and matching hypotheses to direct the study. fiscal federation theory as the basis for this study; the theory was propounded by Kenneth Arrow, Richard Musgrave and Paul Sadweh Samuelson in Samuelson's two important papers in 1954 and 1955 respectively. Data were collected from both primary and secondary sources; the primary data were collected through questionnaires, while the secondary data were sourced from academic journals and internets. Validated questionnaire was used to administer the instrument to 399 respondents of which 381respondents returned the questionnaire. The data collected were presented in frequency tables and analyzed using percentages and the hypotheses were tested using chi-square. From the findings of this study it was discovered inter alia;there are potential revenue streams for infrastructural development in Ayamelum Local Government Area of Anambra state and there are significant impact of internal generated revenue on infrastructural development in Ayamelum Local Government Area of Anambra State. Therefore, the study recommends that Checks and balances should be used to control/manage the funds been generated by the local government and that the joint account system should be repealed due to the level of embezzlement by state governments from the allocation meant for local governments to carry out their functions.