Publisher: University of Calabar

Hundred Years of Revenue Sharing In Nigeria: The Need For A Rethink

Inekwe, Murumba
KEYWORDS: Federation Account, Federating units, Revenue allocation formula, Revenue sharing principles, True federalism


The problem of revenue allocation among the federating units in Nigeria has become a recurring decimal. Previous attempts at finding a peaceful resolution to the problem have not yielded desired results. It is against this backdrop that this paper seeks to examine the genesis of the problem and what we have done wrong as a people, more especially as the country mark one hundred years of amalgamation of the Southern and Northern protectorate. Through a descriptive historical analysis, this paper argues that the problem originated from our colonial masters and was made worse by the inability of the country to come up with an acceptable and equitable revenue sharing formula. This development has put a question mark on the ability of Nigeria to achieve sustainable development as seen, among others, in the continuous creation of unviable units, poor internal revenue generation, and lack of accountability among the federating units. It is recommended that, in the spirit of true federalism, the federating units should be given a wider revenue base and more autonomy to enable them generate enough funds to be able to provide the needed services for their people. This will go a long way in ensuring that the people will be able to hold their leaders accountable for their actions and inactions

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