revenue allocation in Nigeria

Topics: Federal government of the United States, United States, Nigeria Pages: 7 (1969 words) Published: February 14, 2014
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ALLOCATION OF REVENUE (FEDERATION ACCOUNT, ETC.) ACT
ARRANGEMENT OF SECTIONS
SECTION
1.   Distribution of the Federation Accounts, etc.
1 Formula for distribution between the Federal and State Governments. 1 Formula for distribution between Local Government Councils. 1 Proportion of revenue to be paid by each State to Joint Local Government Account. 1 Allocations under special Funds.

1 Establishment of Federation Account Allocation Committee and functions. 1 Establishment of Joint Local Government Account Allocation Committee for each State and functions.
1 Limit on power of State Governments for borrowing money.
1 Report by Accountants-General in the Federation.
1    Interpretation.
11.   Short title.
An Act to prescribe the basis for distribution of revenue accruing to the Federation Account between the Federal and State Governments and the Local Government Councils in the States; the formula for distribution amongst the States inter se; the proportion of the total revenue of each State to be contributed to the State Joint Local Government Account; and for other purposes connected therewith. [1982 No.1.]

 
 [Commencement]              [22nd January, 1982]  
1. Distribution of the Federation Accounts, etc.
The amount standing to the credit of the Federation Account, less the sum equivalent to 13 per cent of the revenue accruing to the Federation Account directly from any natural resources as a first line charge for distribution to the beneficiaries of the derivation funds in accordance with the Constitution shall, be distributed among the Federal and State Governments and the Local Government Councils in each State of the Federation on the following basis, that is to say-

(a)                the Federal Government                                    56.00 per cent; (b)      the State Governments                                            24.00 per cent; (c)      the Local Government Councils                            20.00 per cent.  

[1992 No.106. S.I.9 of 2002.]
1 Formula for distribution between the Federal and State Governments        (1)      The 56.00 per cent specified in section 1 (a) of this Act shall be allocated to the Federal Government and utilised as follows-  

a. Federal Government                             48.50 per cent; a General Ecological Problems              2.00 per cent;  a Federal Capital Territory                     1.00 per cent; a Development of Natural Resources 3.00 per cent.

[1992 No.106. S.I. 9 of 2002.]
(2) The 24.00 per cent standing to the credit of all the States in the Federation Account as specified in section 1 (b) of this Act shall be distributed among the States of the Federation using the factors specified in this Act. [S.1. 9 of 2002.]

(3) For the purpose of subsection-
      (a)        Land mass of a State or local government shall be the proportional areal size (PAS) of the State or the local government to the total areal size of Nigeria, and shall be obtained as follows- (i) for each State -  

(PAS)= Areal size of State x 100
               Total areal size of Nigeria
(ii) for each Local Government-
(PAS) = Areal size of Local Government Area x 100
                  Total areal size of Nigeria       (b)       The allocation due to terrain is made on the basis of the proportional areal size of the three identified major terrain types present in the State or Local Government area respectively, which are- (i) wetlands / waterbodies;

(ii) plains; and
(iii) highlands;
      (c)     
   (i) education as a parameter for allocation to Social Development Factor (SDF) shall be measured in terms of primary school enrolment which attracts 60 per cent of the allocation to education while the remaining 40 per cent is made using secondary/commercial school enrolment; and allocation on the basis of primary school enrolment is made solely on direct proportion. 50 per cent of the allocation on the basis of secondary/commercial school enrolment is...
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