Revenue Allocation Formula In Nigeria 2017

It seems that despite all efforts no revenue allocation formula can serve as an ideal for nigeria.

Revenue allocation formula in nigeria 2017. States 26 72 per cent and local governments 20 60 per cent. Pmb4000 ladoke akintola university ogbomoso nigeria tel. 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. The majority of problems come from the formula of revenue allocation.

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. Nigeria to review revenue allocation formula january 18 2019 isaac umunna comment 0 the adoption of a new minimum wage of n30 000 has necessitated the review of the national revenue sharing formula as demanded by state governments. Allocations under special funds. Frankly the extant allocation formula is grossly unfair mainly to the states from where the bulk of the revenue is generated but who collect a pittance every month when the federal government.

The approved allocation of revenue federation account etc act of 2004. The allocation was made using the revenue sharing formula federal government 52 68 per cent. Establishment of federation account allocation committee and functions. Proportion of revenue to be paid by each state to joint local government account.

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. The report showed that before. Formula for distribution between local government councils. 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.

Each ethnic and state group of individuals in nigeria has their own view of the ideal formula for revenue allocation.