Revenue allocation among the three tiers of government in nigeria essay - part 2 introduction revenue allocation is one of the constitutional functions of the revenue mobilization allocation and fiscal commission - revenue allocation among the three tiers of government in nigeria essay introduction. Ifeanyi onuba, abuja between january and june this year, the three tiers of government received a total allocation of n41tn from the federation account, investigations have revealed. In its ruling [on october 2, 1981], the supreme court declared the revenue allocation act of 1981 unconstitutional, illegal, null and void, and directed all federal and state government officials to refrain from allocating federal revenue according to the provisions of that act.
Of these sixteen, only three - derivation, population, and equity have featured prominently in the sharing schemes despite these efforts, revenue allocation has remained a contentious issue among the three tiers of government in nigeria. One of the recurrent problems of the three-tier system in nigeria is dwindling revenue generation as characterized by annual budget deficits and insufficient funds for meaningful growth and viable projects development. The permanent secretary in the ministry of finance,mr mahmoud isa-dutse has clarified why the revenue allocation to the 3 tiers of government experienced a shortfall in the month of october it would be recalled that in october,federal government,states and local governments which represents the.
First, is the problem of how to allocate revenue among the three tiers of government, such that each tier can carry out is constitutional assigned functions there is. Contemporary issues in nigeria's political economy show that perhaps the most important issue of fiscal federalism is the revenue allocation formula, the sharing of national revenue among the various tiers of government (vertical revenue sharing) as well as the distribution of revenue among the state governments (that is, horizontal revenue. The increased revenue from oil has upped nigeria's statutory allocations to the three tiers of government by 36 percent to n19 trillion in the first quarter of 2018 (q1'2018) from n14 trillion in the corresponding period of 2017 (q1′ 2017. The revenue and resources generated in the country are shared among three tiers of government: federal, state and local government according to their constitutional responsibilities the internal autonomy of 1946 coupled with the sharing of constitutional responsibilities raised the problem of revenue allocation in nigeria.
Revenue generation efforts of the three tiers of government and how the application of true fiscal federalism will boost the internally generated revenue (igr) which will lead to rapid economic growth and development. Sharing resources among the three tiers of government in nigeria, the issue of sharing resources among the three levels of government has remained controversial due to lack of an acceptable formula. The near total reliance of the three tiers of government on revenue accruing to the federation for their everyday activities is a huge source of worry, ifeanyi onuba writes on how federation. The relative roles of the three tiers of government—the federal government, the state governments, and the local government authorities (lgas)—in public service delivery has emerged as one of the most important topics of open and vigorous debate in.
Revenue allocation is the distribution of revenue, or total income, through a business, corporate or government structure it often involves a complex process of determining how and where to funnel revenues in order to best maintain the viability and operating structure of an organisation. Three tiers of nigerian government share n8864bn in february account was shared among the three tiers of government for the month of february statutory allocation, the federal government. Revenue allocation among the three tiers of government in nigeria essay introduction revenue allocation is one of the constitutional functions of the revenue mobilization allocation and fiscal commission - revenue allocation among the three tiers of government in nigeria essay introduction. The federal constitution of nigeria, provides that all revenue collected under federal laws be known as federally collected revenue and paid into federation account and distributed to the federal, state and local government according to the existing revenue allocation formula.
Procedure for revenue sharing among the federating units of government in nigeria: a discourse on the experience of the present democratic dispensation by aregbesola, micheal oluwasegun department of political science university of ibadan ibadan, nigeria. Sir: for the past few years, it has been difficult to understand the stand and body language of the revenue mobilization allocation and fiscal commission, abuja in respect of the fulfillment of. Revenue generation and allocation among the federating units of nigerian federalism is a crucial issue in that as soon as there exist two or more levels or tiers of governments, it becomes necessary to introduce a system of sharing fund to various tiers of government to particularly meet constitutionally assigned and specified functions. The success recorded in achieving the objectives of investigating the revenue allocation and political stability in nigeria economy, point at the importance of the fact aspect of political economic management function of the government, which have appeared to be neglected by nigerians.
As among states and as among local government areas the principles of allocation should be as simple as possible two criteria only are proposed: minimum access to federal revenue (30%) and the principle of man and space (70%). Decentralization ratio and shares of revenue (in percentage) by tiers of government and nigerian states' horizontal fiscal imbalance from 1993 to 1997 in fact, this disturbing aspect of nigerian fiscal federalism, among other factors, has lately led to. Revenue allocation can be described as a method(s) of sharing the centrally generated revenue among the different tiers of government and how the amount allocated to a particular tier is shared among the components (ikeji, 2011:122. The minister of finance, kemi adeosun, yesterday intervened to resolve a deadlock at the federal accounts allocation committee (faac) meeting following the rejection of a lean n74 billion revenue.
The inhabitants of the various local government areas of the nation (nigeria) will have the course to enjoy the affirmative results to certain extent if all or part of these problems to revenue generation in local governments are properly tackled. Existing literature on politics of revenue allocation among the three tiers of government in nigeria thereby stimulating further research from students and scholars empirically, the relevance of this study to policy makers and the society cannot be over. The federation account allocation committee (faac) distributes revenues among the three tiers of government in nigeria: federal, states and local governments wpdatachart with provided id not found the federation revenue allocation is currently being managed on a legal framework that allows funds.