REVISITING REVENUE ALLOCATION FORMULA IN NIGERIA: A PANACEA FOR TRUE FEDERALISM AND DEMOCRATIZATION

Abstract

Revenue Allocation Formula is a household name that has occupied centre stage of the nation’s socio-political history prior to independence. Since 1958, when Nigeria exported her first oil products, oil has been ceaselessly flowing on the land. From 1970’s to 80’s and 90’s the nation has been growing infrastructurally. Lagos and Abuja were built with oil money. New states were recreated with Gulf War oil sales, but the goose that laid the golden eggs were not having a good share. Thus, the Nigerian Federation turned to a theatre of conflicts over the sharing of oil money among the component units that make up the country. This led to controversies and agitations. The military entered the stage and could do no better. The appointment of commissions of inquiry could not help much, as their reports were jettisoned with Decrees. The 1995 confab recommendation which found its way into the 1999 constitution introduced the 13% derivation formula which holds till today. The objective of this work is to applaud the Federal Government decision to revisit this hydra-headed monster that has kept the country in a quagmire, and to proffer recommendations on the importance of an acceptable revenue formula for a socio-economic peace. The adoption of primary and secondary source methodology was to enable the writer apply textbook writers opinion to critically analyze the concept and advise of Mr. President and the stakeholders on the necessity of the review as a panacea for true federalism and full blown democracy.