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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Revenue allocation in Nigeria: a case study of a developing economy
Author:Anyatonwu, George N.
Year:1980
Periodical:Taamuli: a Political Science Forum
Volume:10
Issue:2
Pages:45-59
Language:English
Geographic term:Nigeria
Subject:revenue allocation
Abstract:One of the most vexed questions in Nigeria is how to find appropriate parameters for allocating federally collected revenues to the three tiers of government. The controversy over what is the most acceptable revenue allocation formula has been shrouded in tribal sentiments, which has been responsible for the failure of each Revenue Commission since 1946. No fiscal commission has been able to satisfy the varied financial needs of the nineteen states of the federation, and this is because oil states advocate the derivation principle, populous states the principle of population, while others insist that revenue allocation should be based on even development and equality of states. For Nigeria to evolve a revenue allocation scheme that is free of conflict and rivalry, a closely-knit federation would have to emerge. In this context, a formula for revenue allocation that would promote national interest and a united Nigeria must seriously consider the following criteria: even development, need, national interest, population, and compensation (the states from which minerals are mined to be adequately and judiciously compensated). Notes, tab.
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