Revenue Allocation System in Contemporary Nigeria

INTRODUCTION One of the perennial problems which has not only defied all past attempts at permanent solution, but also has a tendency for evoking high emotions on the part of all concerned (each time it is brought forth for discussion or analysis) is the issue of equitable revenue allocation in Nigeria. It is an issue which has been politicised by successive administrations in Nigeria both Military and civilian regimes. Indeed, in virtually all federations in which the constitution shares power between the central and regional or state governments and, for each level to be “within a sphere co-ordinate and independent” (Wheare 1963:93) enough resources need be allocated to each tier to justify their existence. For many years, Nigeria has been searching for an equitable revenue allocation formula that will meet the yearnings and aspirations of her federating units. The issue has remained elusive largely because the debate is based on revenue allocation, rather than focus on how to meet the nation’s economic imperatives; revenue allocation has often been dictated by or mired in geopolitical and ethnocentric considerations. Paradoxically, however, the debate has also emphasized more on revenue sharing than on generating.
REVENUE ALLOCATION SYSTEM IN NIGERIA
In its chequered historical journey, revenue allocation has remained a central theme for various fiscal commissions and committees set up by either the military or civilian governments in Nigeria. Beginning from the Phillipson Fiscal Commission of 1946 to the Okigbo Commission of 1980 and recently, the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), the objectives of each commission have remained the same or similar: To examine the extant fiscal issues of the nation and “make appropriate recommendations on the principles and formulae on how to share the national revenue to the three tiers of government in Nigeria”. Some of the defunct commissions and committees had operated on ad hoc bases, but the

References: Ahmed Iliyasu (2011): Revenue Allocation Formula in Nigeria: issues and challenges Being a Paper Presented at the Retreat Organised for Members of the Revenue Mobilisation Allocation and Fiscal Commission at Le Meridien, Ibom Hotel and Golf Resort, Uyo, Akwa Ibom State, Monday, 14th – Friday, 18th February, 2011 http://dailypost.com.ng/2013/05/31/silas-reuben-nigeria-seeking-for-an-equitable-revenue-allocation-formula. Date retrieved 05/06/2013 Wheare, K. C., (1963): Federal Government; (4th Edition), Oxford University Press, London.