Revenue Allocation System in Nigeria Pre- Independence.
Introduction
Nigeria is Africa’s leading producer of oil and the seventh largest producer of crude oil in the world, and equally endowed with other numerous natural resources. But rather than utilizing its resources for maximum development, the country is unfortunately bedevilled with how to efficiently and effectively distribute oil revenues in an equitable manner. The revenue allocation phenomenon in Nigeria is basically the issue of distribution of national (resources) revenue, mobilized by the central federal government. And as far as the revenue allocation debacle is concerned, the haggling is between those who bake the national cake (major contributors to national revenue) and those at the helm of affairs to allocate it. There exist two fundamental dimensions of revenue allocation or sharing in Nigeria. The first dimension is based on the institutions and tiers of government which the federal government is at the helm of affairs. While the second dimension is the issue of individuals and groups appropriating national revenue for themselves by corrupt and unjust means. It is important to note that, revenue allocation in Nigeria is defined by an inordinately strong political content, as evidenced in the tendency for major constitutional developments and political transactions to be accompanied by political pressures for revenue sharing reforms and fiscal adjustments.
Therefore the questions that beg for answers are: What is the character of revenue allocation in Nigerian federalism. What is the rationale behind vehement agitations for increased revenue allocations in some parts of the country, e.t.c. This paper seeks to unravel the politics of revenue allocation in Nigeria, identify the major players, losers and gainers, and how national revenue is personalized in Nigeria body polity.
BRIEF HISTORICAL BACKGROUND OF REVENUE ALLOCATION IN NIGERIA
Revenue allocation in Nigeria a central theme in governance has a chequered historical antecedent. Many
Nigeria is Africa’s leading producer of oil and the seventh largest producer of crude oil in the world, and equally endowed with other numerous natural resources. But rather than utilizing its resources for maximum development, the country is unfortunately bedevilled with how to efficiently and effectively distribute oil revenues in an equitable manner. The revenue allocation phenomenon in Nigeria is basically the issue of distribution of national (resources) revenue, mobilized by the central federal government. And as far as the revenue allocation debacle is concerned, the haggling is between those who bake the national cake (major contributors to national revenue) and those at the helm of affairs to allocate it. There exist two fundamental dimensions of revenue allocation or sharing in Nigeria. The first dimension is based on the institutions and tiers of government which the federal government is at the helm of affairs. While the second dimension is the issue of individuals and groups appropriating national revenue for themselves by corrupt and unjust means. It is important to note that, revenue allocation in Nigeria is defined by an inordinately strong political content, as evidenced in the tendency for major constitutional developments and political transactions to be accompanied by political pressures for revenue sharing reforms and fiscal adjustments.
Therefore the questions that beg for answers are: What is the character of revenue allocation in Nigerian federalism. What is the rationale behind vehement agitations for increased revenue allocations in some parts of the country, e.t.c. This paper seeks to unravel the politics of revenue allocation in Nigeria, identify the major players, losers and gainers, and how national revenue is personalized in Nigeria body polity.
BRIEF HISTORICAL BACKGROUND OF REVENUE ALLOCATION IN NIGERIA
Revenue allocation in Nigeria a central theme in governance has a chequered historical antecedent. Many
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