Spatio-Temporal Information System Modeling and Econometric Analysis of Revenue Allocation in Nigeria (1999 – 2008)
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As far back as the early 1970s, the bulk of federally allocated revenue derived from revenue accruing to the federal government is shared with the other two tiers of government under a revenue allocation system (RAS) using different formulas at different times. At different times, ad hoc commissions have been set up to determine the allocation formulae and criteria. Between 1946 and 1979, there were eight of such commissions on revenue allocation. Sixteen sharing principles have been recommended
by the various commissions to date. Of these sixteen, only three - derivation, population, and equity have featured prominently in the sharing schemes.

Despite these efforts, revenue allocation has remained a contentious issue among the three tiers of government in Nigeria. In the last eight years, the 36 state governments have been at daggers-drawn with the Federal Government over the formulation of a revenue sharing formula that would be acceptable to all the stakeholders. One major impact of this seemingly never ending controversy is the fact that fiscal federalism in Nigeria has not been able to contribute optimally to social and economic development.

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