In our previous post on the major sources of government revenue and government expenditures we ve talked about how the federal government derives its revenue from different sources. The principle was first open to discussion in 1946 by the phillipson commission who regarded it as a way of making regions with natural resources benefit from their god given endowment based on contribution to the central revenue pot adebayo 1988. Hence the nature of fiscal federalism and revenue allocation formula in nigeria is such that it has failed to emphasize the derivation principle and to allocate adequate resources for the.
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