Abstract: | For Nigeria, the problem of revenue allocation involves simultaneously optimising allocation between the federal, state and local governments; amongst the state and the local governments; and amongst the local governments within a state. Any solution to the problem of revenue allocation must take into consideration the share of responsibilities and the available resorces. In the present article, only the issue of sharing amongst the n states is fully discussed. It is assumed that n is large and that the problem of sharing responsibilities has been solved. The Nigerian experience is use to illustrate the model. Notes, tab. |