REVENUE ALLOCATION AND POLITICAL STABILITY IN NIGERIA

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CHAPTER ONE: Introduction

• Brief Review of the Nigerian Experience as a Nation State
• The Various Sources of Revenue to the Nigerian State
• The Need/Basis of Allocation of Revenue
• Statement of Research Problem
• Purpose of the Study
• Statement of Hypothesis
• Significance of the Study
• Scope and Limitation of the Study
• Definition of Terms

CHAPTER TWO: Literature Review

2.1   The Definition of Revenue Allocation

2.2   The Definition of Political Stability

2.3   The Various Methods of Revenue Allocation

2.4   The Various Methods have help in Bringing about Political Stability or

Other wise in the Past

2.5    Criteria in use for Revenue Allocation

2.6   A Review of Federal Revenue Share 1992 – 1995

2.7   A Review of State Revenue Share 1992 –1995

2.8   A Review of Local Government Revenue Share 1992 –1995

2.9  Emergent Issues in Revenue Allocation 1999 Constitution and Newly         Proposed Revenue Allocation (2001)

 

CHAPTER THREE:  Research Methodology

3.1   Research Design

3.2   Interview

3.3   Source of Data

3.4   Primary Data Sources

3.5   Secondary Data Sources

3.6   Statistical Method Used

 

CHAPTER FOUR: Data Presentation and Review of Pre-independence Revenue Sharing Allocation Formula

4.1 1946 Revenue Allocation Formula

4.2 1957 – 1958 Revenue Allocation Formula

4.3 1963 – 1964 Revenue Allocation Formula

4.4 Review of 1989 – Revenue Sharing Formula

4.5 Review of 1995 Revenue Sharing Formula

4.6 Hypothesis Testing

 

CHAPTER FIVE: Introduction

5.1   Summary of Findings

5.2   Recommendations

5.3   Conclusion

5.4  Area of Further Research

Bibliography

CHAPTER ONE

 

INTRODUCTION

1.1     BRIEF HISTORY OF THE NIGERIAN EXPERIENCE AS A NATION STATE

To highlight some significant event and developments in response to a review of Nigeria experience as a nation state, it is intellectual to present a brief survey of the part to understand the distinct phases through which the nation passed to arrive at its present political state and economic condition vis-à-vis revenue allocation. Some of these historical periods have enjoyed such a degree of political stability that in reference to revenue allocation and political stability, not only were great or studies made in the promotion of social and economic development, the overall smoothness in the functioning of the governmental system at both the regional and federal levels over shadowed the negative consequences of the power struggles and by the late 1950’s a myth of Nigeria as a “stable democracy” enjoyed considerable international credibility.

The introduction of modern methods of governance on a gradual pace in what could be described as a semi- federal and quasi-democratic structure of 1946 Nigeria, like a newborn baby of the British colonial administration passed through various developmental phases of political growth. By 1957, the political structure has developed into a well-structured democratic federal political process upon the background and modern political process was set Nigeria; in 1979, the constitution of the federal republic of Nigeria provided for a democratic federal structure in the political process.

In this study, it is observed that the introduction of system of revenue allocation in the Nigeria political economy dates bank to the political development of 1946. It is note worthy to state that the revenue allocation system in the political process had indeed been accompanied by constitutional changes over the decades. These suggest that the constitution provides the essential political environment in a nation state.

It is significant that while the constitution emphasis national unity with its concomitant principles of deviation, population and equity of state in revenue allocation, to some observer such constructional provision were not borne out of a true desire for national unity and integration.

The revenue allocation issue in the political economy of Nigeria is a volatile as any other national question such a population. This means that how national revenue is shared among the different component political units of the federal structure is irretrievably tied to the national question. Hence no broadly acceptable national revenue allocation formula has been had since 1947 and which has not generated controversy but had to be made acceptable “in the interest of national unity”.

Since 1947, about thirteen (13) formulas have been devised for the sharing of national revenue. Everybody has formed none satisfactory and such each one has generated more controversy than the last one.

The politicians through their activities in the revenue allocation agitation and ensuring power struggle aroused the suspicion of  the source but visibly political military to hostility in a military fashion and cash in one invitation to seize power in the country public opinion on national consciousness believed that the national interest has debased by the politicization of the revenue system sharing. Its outcome becomes the breakdown of the common national spirit action and consciousness.

Thus, the Nigeria economic development through nationalism was scarified on the alter of ethnic and states power politics.

 

1.2     THE VARIOUS SOURCES OF REVENUE IN THE NIGERIA STATE

Revenue generation efforts by government have been from various sources. However, there could be classified into 2 main sources of revenue in Nigeria. There are the oil and non-oil sources. Over the year, prior to 1973, the revenue from non-oil source contributed to sixty percent of the federally collected revenues but from 1973 to now the contribution from the non-oil sources have reduced drastically. This invariably makes may for the oil sources to generate a major share of the government revenue.

Foreign exchange earnings from export of agricultural commodities such as cocoa, palm produce, rubber, groundnut e.t.c. as major sources of foreign exchange earning and government revenue.

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.

The revenue of government comprises of the following sources;

 

SOURCE:             O