PROBLEMS/CHALLENGES OF FISCAL FEDERALISM IN NIGERIA

Timbee Akuul

Department of Political Science,

Benue State University, Makurdi

Email: timbeeakuul@yahoo.co.uk

Abstract

The Nigerian state has faced the challenge of coming up with a revenue sharing formula that is acceptable to all Nigerians. This has generated crisis over revenue allocation and sharing since independence. Between 1946 and 1980, revenue sharing formula in the country was reviewed eight times. These reviews indeed recommended that revenue sharing should be based on principles of derivation, population, even development need and national interest. Based on these principles, the Federal government percentage has always been higher than those of all other federating units. This has generated crisis leading to clamour for resource control by some states of the federation. In order to solve this problem, there is need to introduce a revenue sharing formula that will be acceptable in meeting the development aspirations of all federating units in the country. This can be achieved through depoliticising revenue sharing process, addressing issues of injustice and inequality in resource allocation, decongesting enormous powers at the centre and instituting accountability and selfless governance at all the levels of government in the country.

Keywords: Problem, Challenges, Fiscal, Federalism, Nigeria.