Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

An Appraisal of the Federal Revenue Allocations to State Governments in Nigeria


Affiliations
1 Nnamdi Azikiwe University, Awka, Nigeria
2 Federal Polytechnic, Oko, Nigeria
     

   Subscribe/Renew Journal


Given the controversial debate on an acceptable formula for sharing federally collected revenue, the study appraised the formula for sharing the states' share of revenue from the Federation account among the individual states in order to determine whether it discriminates against any group of Nigerians. The 27 non-oil producing states of Nigeria were purposively selected for the study. Data on revenue from the Federation account to each state were obtained from the Office of the Accountant General of the Federation. Kruskal-Wallis one way analysis of variance by rank was used to analyse the data. Findings show that there is significant difference in the per capita revenue attracted by individual Nigerians to their respective states. The implication is that the current formula for horizontal distribution of states share of the federation account is not in the spirit of Sections 42 of the Nigerian Constitution which prohibits discrimination against any Nigerian. The study recommends that the National Assembly should take note of this finding and possibly review the existing formula for distributions of the states' share of the Federation account among the states.

Keywords

Federally Collected Revenue, Horizontal Distribution of States Share.
Subscription Login to verify subscription
User
Notifications
Font Size


Abstract Views: 368

PDF Views: 0




  • An Appraisal of the Federal Revenue Allocations to State Governments in Nigeria

Abstract Views: 368  |  PDF Views: 0

Authors

Ugochukwu C. Nzewi
Nnamdi Azikiwe University, Awka, Nigeria
Hope N. Nzewi
Nnamdi Azikiwe University, Awka, Nigeria
Chikwelu M. Mbonu
Federal Polytechnic, Oko, Nigeria

Abstract


Given the controversial debate on an acceptable formula for sharing federally collected revenue, the study appraised the formula for sharing the states' share of revenue from the Federation account among the individual states in order to determine whether it discriminates against any group of Nigerians. The 27 non-oil producing states of Nigeria were purposively selected for the study. Data on revenue from the Federation account to each state were obtained from the Office of the Accountant General of the Federation. Kruskal-Wallis one way analysis of variance by rank was used to analyse the data. Findings show that there is significant difference in the per capita revenue attracted by individual Nigerians to their respective states. The implication is that the current formula for horizontal distribution of states share of the federation account is not in the spirit of Sections 42 of the Nigerian Constitution which prohibits discrimination against any Nigerian. The study recommends that the National Assembly should take note of this finding and possibly review the existing formula for distributions of the states' share of the Federation account among the states.

Keywords


Federally Collected Revenue, Horizontal Distribution of States Share.