Nnadiebube Journal of Philosophy

Revenue allocation in Nigeria is not merely a matter of economic calculation; it is deeply intertwined with questions of justice, equity, and political stability. The country’s diverse ethnic and regional composition, coupled with its historical experiences of centralization and contestation over resources, renders the equitable distribution of revenue both complex and contentious. In Nigeria, the competing principles such as the principles of derivation, equality of states, population, and need, have shaped the evolution of revenue allocation formulas over time. This study adopts the method of philosophical analysis to examine these principles as well as the challenges of revenue allocation in Nigeria. The study’s analyses emphasize that persistent tensions in Nigeria’s fiscal federalism stem from unresolved contradictions between these principles and the political bargaining that underpin them. The study recommends striking a balance between rewarding resource-producing regions and ensuring that all parts of the federation have access to sufficient resources for development.

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