Revenue Allocation Formula In Nigeria

Other studies such as aigbokhan 1999 jimoh 2003 emengini and anere 2010 akeem 2011 and usman 2011 carried out empirical studies on the effects of the level of decentralization of government activities including reve nue allocation on nigeria s economic development using.

Revenue allocation formula in nigeria. This is consistent with the study of jimoh 2003. Revenue sharing formula in nigeria the revenue mobilization allocation and fiscal commission rmafc is charged with the duty of revenue sharing between the three tiers of government. Agriculture for instance was a major source of revenue for the western region. This is one of the causes of conflict as regards the revenue allocation formula in nigeria.

The approved allocation of revenue federation account etc act of 2004. The state and local governments also want a sizable share of the federation account and have been agitating for a higher revenue allocation of the federation account. Allocations under special funds. All this has however changed since the discovery of oil in.

All this has however changed since the discovery of oil. Revenue allocation formula in nigeria introduction prior to the discovery of oil in nigeria other sectors of the economy thrived. Proportion of revenue to be paid by each state to joint local government account. Revenue allocations have a causal.

The eastern region that was less endowed devised other sources of revenue. Formula for distribution between the federal and state governments. Pmb4000 ladoke akintola university ogbomoso nigeria tel. Formula for distribution between local government councils.

According to him in the new sharing formula states and local. The analysis reveals the extent to which revenue allocation formula adopted in the past has affected the path of economic growth and. Revenue allocation on economic development of nigeria. Revenue allocation formula in nigeria introduction prior to the discovery of oil in nigeria other sectors of the economy thrived.

Agriculture for instance was a major source of revenue for the western region. In summary the variables of this study that is real gdp revenue allocation to federal government revenue allocation to states and revenue allocation to local governments have a long run relationship among them for the period 1993 to 2012 in nigeria. As you can see the federal government owns a lion share of the revenue. Under the current revenue sharing formula each month the federal government takes the major share of 52 68 from the federation account the 36 states get 26 72.

Thus it can conveniently be concluded that the vertical allocation formula is for inter tier sharing between the three tiers of government while the horizontal allocation formula is for intra tier sharing among the 36 states and the 774 local governments in nigeria.