Federalism and Revenue Allocation in Nigeria: Derivation Principle

This work analyses Nigeria's Federalism that has been enmeshed in contradictions,paradoxes,controversies and crises. The issues national unity, local autonomy and self-determination, equitable distribution of revenue, rewards, opportunities and power are also inclusive. Right from independence, Nigeria has not had an equitable revenue sharing formula. This work explores Nigeria's fiscal relations and the revenue allocation formula through a descriptive historical analysis cum power approach. It specifically focuses on the lopsidedness and imbalance associated with the system, which have combined to affect the Nigeria federal system as a whole. Data for this work was sourced mainly from the secondary sources of data, and a general recommendation to emphasise more on the principle of Derivation as it will make the component states, self-reliant.