Agitations for Fiscal Federalism in Nigeria: Prospects and Challenges

Stephen Ogbodo

Department of Political Science Faculty of Social Science and Humanities Enugu State University of Science and Technology (ESUT), Nigeria

ABSTRACT

This paper explores the derivation revenue allocation system in Nigeria during the 1990s, with a specific focus on the impact of different revenue allocation principles, such as land mass, population, equality of states, and need. The study examines the disparities in the allocation of statutory revenue to various Nigerian states, using data from the Federal Ministry of Finance (1990), and further investigates the distribution of revenue based on these principles. Through the analysis of selected states like Akwa Ibom, Rivers, and Kano, the paper illustrates how these allocation methods often resulted in unequal benefits, particularly favoring resource-rich and more populous states. The study also addresses the challenges posed by incomplete or inaccurate population data and the controversial application of the land mass formula. By examining the figures from the 1996 and 2004 allocation periods, this research highlights the inconsistencies and flaws in Nigeria’s revenue distribution system and calls for reforms to achieve a more balanced and equitable allocation of resources.

Keywords: Revenue allocation, derivation revenue, Nigeria, population criterion, land mass, equality of states, fiscal federalism, state development, 1990s, federal finance.

CITE AS: Stephen Ogbodo (2024). Agitations for Fiscal Federalism in Nigeria: Prospects and Challenges. RESEARCH INVENTION JOURNAL OF CURRENT ISSUES IN ARTS AND MANAGEMENT 3(3):89-105.