REVENUE MOBILIZATION, ALLOCATION AND FISCAL COMMISSION AS A TOOL TO NATIONAL INTEGRATION
CHAPTER ONE
INTRODUCTION
1.1. OVERVIEW OF THE STUDY
Revenue Allocation is a dynamic process which has been changing with the historical and political condition of the country. The issue of revenue sharing came to sharp focus with granting of the internal autonomy to the regions- North, West and East under the Richardson constitution of 1946 and the
subsequent sharing of responsibilities between the federal, state and local governments.
The Federal Government use to declare revenue according to the proportion of its contribution to the central revenue derivation principle, Adebayo (2008).
Thus, the origin of federation in Nigeria had brought a lingering problem of how best to find a permanent solution to equitable revenue allocation formula in Nigeria which had been politicized by successive administration both military and civilian regimes.
According to Philips (2007), the three important problems are as follows:-
1. How to allocate functions rationally.
2. How to share revenue between the government of the federation
3. How to allocate taxing powers.
Since 1970 to 2010, there had been a continuous review manipulation and time inconsistence of revenue allocation formula in Nigeria that prompted me to research into a permanent and equitable revenue allocation formula.
The different commissions established to provide equitable revenue allocation formula include:-
1. Two post-independence ad-hoc revenue allocation commissions.
1. Binns Commission (1964)
2. Dina Committee (1969)
2. Four military government issued decrees, all during Gowon’s regime.
1. 1997
2. Decree 13 of 1970
3. Decree 9 of 1971 and 1975
3. Two comprehensive revenue allocation commissions
1. Aboyade Committee (1977)
2. Okigbo Commission (1980)
iv. Two revenue allocation Legislation Acts
1. 1. Allocation of revenue Act (Federation Account) (1981)
2. Allocation of revenue amendment Decree (1984) and finally established a permanent National Revenue Mobilization Allocation and Fiscal Commission (RMAFC) through Decree 49 of 1989, a commission which continues with us today even in the 1999 constitution.
This commission was also inaugurated by His Excellency, President Obasanjo, on the 20th of September, 1999 in line with paragraph 31, part 1 of the third schedule to the 1999 constitution. Indeed, the history of revenue allocation and fiscal responsibility commission in Nigeria in connection with derivation principle and the Niger Delta problems has been quite intriguing.
