EKWE JONAL

Revenue allocation among the three tiers of government in Nigeria has been a subject of hot debate because of the political nature of the exercise. Several attempts made by various administrations to evolve an acceptable and all embracing revenue allocation formulae for the country were yet to create the desired rapprochement among contentious groups. This paper examined the issue of revenue allocation and identified major challenges which are embedded in it as well as outlining its prospects. It employed both descriptive and historical methods to comprehend the subject matter under discussion. It is the position of the paper that in a bid to resolve the controversial issues surrounding the contentious revenue allocation in Nigeria, a high level of fiscal decentralization is required to replace the unfair revenue sharing formula currently in operation. Beside recommending a substantial review of the fiscal system, the paper concluded that the formulae for revenue sharing in Nigeria should be guided by national interest which should super cede individual or primordial interest and sentiments.

Open Full Text (PDF)