Revenue Allocation in Nigeria: Issues, Challenges and Prospects

Edet Joshua Tom and Harrison Otuekong Ataide

Journal of Public Administration and Governance, 2021, vol. 11, issue 2, 229245

Abstract: Revenue allocation among the three tiers of government in Nigeria has been a subject of hot debate because of the political nature of the exercise. Several attempts made by various administrations to evolve an acceptable and all embracing revenue allocation formulae for the country are yet to create the desired rapprochement among contentious groups. This paper examined the issue field of revenue allocation and identified major challenges which are embedded in it as well as outlining prospects for it in Nigeria. It employed both descriptive and historical methods to comprehend the subject under discussion. It is the position of the paper that in a bid to resolve the controversial issues surrounding the contentious revenue allocation in Nigeria, a high level of fiscal decentralization is required to replace the unfair revenue sharing formula currently on operation. Besides recommending a substantial review of the fiscal system, the paper concluded that revenue formulae for revenue sharing in Nigeria should be guided by national interest which should super cede individual or primordial interest and sentiments.

Date: 2021
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