We know from the constitution that provision of public services such as health, education, agricultural services and so on are all on a concurrent list and therefore are joint responsibilities of the federal state and local governments. Some of the agric products grown in this state include yam, maize, plaintain, cocoa which are either eaten by its citizens or exported. Because of the current revenue allocation formula in Nigeria, though there is a great deal of wealth in the country from the oil industry, 64% of the population lives below the poverty line. Nevertheless, the clamour for an equitable revenue allocation remains a thorny issue as the contentious debate persists. InfoGuide Nigeria is a multi-author blog in Nigeria founded by. It is important to recongnize that the states and local governments are the two lower levels of governments that are closer to the people. It is made worse bymassive water impoundment and irrigation problems.
It is this oil producing state that funds the economy of the nation and you hardly hear of the state government owing its workers as its internally generated revenue solves major problems in the region. Therefore the questions that beg for answers are: What is the character of revenue allocation in Nigerian federalism. The least developed states receive the most funds. Also located in the south west region, just like Lagos, this state is also on the list of highest revenue generating states in the country with an estimated figure of N34,596,446,519. They hope that this monetization will help improve the value of thecountries monetary system.
Oil exploration, needless to say, has brought untold hardship to the people of the Delta region. Desertification is a major problem in Nigeria. This will douse the acrimony that appears to define the current debate. All this has however changed since the discovery of oil in the country. Broadly speaking, the distribution is as follows: the federal government receives 56 percent, the state governments receive 24 percent and the local governments receive 20 percent.
Agriculture, for instance, was a major source of revenue for the Western Region. Excise Duties: These are taxes imposed in the goods produced in a country. You can't do for one state and give excuses to another. Some of the state government have theirs example, New Housing Estate in Enugu State, Isheri Housing Estate in Lagos state to mention a few. Any action taken as a result of information, analysis, or advertisement on this site is ultimately the responsibility of the reader.
These measures can be lengthening the hours of work, were these can measure up; there are other ways of getting their desired objective, example by speeding up work production over time and underpayment of workers. In the words of Ogunna 1999 , the poor performance of public enterprises in Nigeria can be approached from the perspective of inadequate financial and material resources, poor management, corruption and lack of continuity of public corporation boards. The politics of revenue allocation even in the present democratic dispensation has been so contentious that a week after, the Special Committee headed by House Leader, Abdul Ningi had to undertake Public Hearings between August 28 to30, 2006 across the six geopolitical zones. The mineral resources you can find there is coal which when refined can be used to produce energy. He passed certain laws in the north to enhance the collection of the tax. Oil is just one of several mineral deposits across Nigeria. 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.
Internally generated revenue in Lagos stays in Lagos and I think Lagos pays tax to the federal government while the revenue generated from oil wells in the south south belongs to the federal government. But the issue of revenue allocation formula is so serious that it really calls for a. Still, it seems that these changes had almost no influence! This has led to the demise of the other productive sectors of the economy. Akwa Ibom State — 426 billion 4. There exist two fundamental dimensions of revenue allocation or sharing in Nigeria. This is because the Federal Government receives revenues from the taxes of all states! The Eastern Region that was less endowed devised other sources of revenue.
The state has over 3 million persons populating its large land mass area and it is ranked 5th richest state in the country. Equality of access to development opportunities, 6. It is worthy to note that oil prospecting and exploration was the highest contribution to the sources of government revenue. Sir Egerton govnor of lagos colony and high commission of southern protectorate brought the suggestion of the amalgamation between lagos and southern protectorate. About possible consequences you can read here: In an effort to protect our intellectual properties, we may report your website to Google without prior notice and your website be removed from search engines and you may receive a strike. Edo One major source of Edo state wealth is tourism.
However, the dwindling development in the Niger Delta has been widely viewed as a sheer greed and insincerity on the part of federal government. The difference between the fiscal capacity of various tiers of government and their expenditure responsibilities is a striking feature of the Nigerian federal finance. An inaugural lecture, university of Ibadan, Faculty of Social Sciences Ibaba, I. The team comprises professionals and Consultants from different fields of human endeavour. He listed the objectives of the privatization among other things to include the restructuring and rationalization of the public sector in order to lesson the dominance of unproductive investments, beside, privatization was targeted at raising funds for financing social-economic development in areas such as health, education and infrastructure. He and his northern colleagues should be aware also that the South-South zone should and must defend the area's interest.
During the fiscal year 1960—1961, the Federal Government collected over £85 million under its taxing power while the total revenue collected by the then three regions was only slightly over £14 million. Through the exportation of certain crops like cocoa, timber, etc and other agricultural produce, revenue is being generated to the government to enhance its policies implementation. He contends because public parastatals was only peripheral to the interest of the foreign capitalist conditions of work in it particularly the wages were attractive than in the private companies with a consequent lowering of workers moral and productivity. Nigeria uses a mix of principles for the revenue allocation. If developmental efforts, enhanced by increased revenue receipts are carried out simultaneously in all the 36 states and 774 local governments in Nigeria, ipso facto, the entire country will enjoy economic vitality and improvement in human condition. What is the rationale behind vehement agitations for increased revenue allocations in some parts of the country, e. Conclusion and Suggestion No government can actually function, lest alone fulfill its statutory responsibility as enshrined in the constitution, and since funds is needed to run a government, need therefore, arise that the federal government of Nigeria, and the states governments and well-meaning Nigerians to rise to the task of arriving at the most fair, and acceptable derivation formula, such that will serve the aspirations and the yearnings of Nigerians.
Obadan hints that the enhancement of efficiency should be the primary objective of a privatization programme. Yet, others have made a case that each state in the Federation should be granted full economic autonomy to exploit and manage its own natural resource s. The Political forces keep fighting over the concepts of revenue allocation and fiscal federalism. Also it is the most populated state in the country with over 25 million citizens living within its territory. Kebbi State — 107 billion 22. In other words the government programs were commensurate with revenue source. For today, the latest revenue allocation formula was adopted in 2015.