Abacha regime adopted and maintained the formular bequeathed to it by Babangide regime. This formular is presented below:
- Federal government 48.5%
- State government 24%
- Local government 20%
- Special fund 7.5%
According to T.Y. Danjuma, the federation account here is made up of revenue from the following sources:
1. Export duties
2. Import duties
3. Excise duties
4. Company Income tax
5. Pipeline license and fees
6. Surpluses arising from the sale of Gas
7. Mining rents and royalties
8. NNPC Earnings from Direct states.
The Introduction of value added tax (VAT) in 1996 has also diversified source of fund (vertically) since the 1997 fiscal years is:
- Federal government 35%
- State government 40%
- Local government 25%
The higher percentage enjoyed by the VAT revenue sharing has been justified by chief Anthony Ani-former finance minister when he said:
In order to compensate state government whose Incomes from the payee (Tax) are likely to be adversely affected by the enhanced allowances granted tax payer, the VAT distribution formular is further reviewed in favour of state.
1. Federal government 55%
2. State government 35%
3. Local government 10%
Allocation to oil mineral producing states and general ecological problems stood at 1.5% and 1% respectively.
- Federal government 48.5%
- State government 24%
- Local government 20%
- Special fund 7.5%
According to T.Y. Danjuma, the federation account here is made up of revenue from the following sources:
1. Export duties
2. Import duties
3. Excise duties
4. Company Income tax
5. Pipeline license and fees
6. Surpluses arising from the sale of Gas
7. Mining rents and royalties
8. NNPC Earnings from Direct states.
The Introduction of value added tax (VAT) in 1996 has also diversified source of fund (vertically) since the 1997 fiscal years is:
- Federal government 35%
- State government 40%
- Local government 25%
The higher percentage enjoyed by the VAT revenue sharing has been justified by chief Anthony Ani-former finance minister when he said:
In order to compensate state government whose Incomes from the payee (Tax) are likely to be adversely affected by the enhanced allowances granted tax payer, the VAT distribution formular is further reviewed in favour of state.
Okigbo Presidential Commission (1980)
The Okigbo presidential commission on revenue allocation which was constitute in 1980 gave the following recommendations for the sharing of revenue.1. Federal government 55%
2. State government 35%
3. Local government 10%
Allocation to oil mineral producing states and general ecological problems stood at 1.5% and 1% respectively.
SUMMARY OF REVENUE ALLOCATION FROM 1988-1993 (IN BILLIONS)
|
S/N
|
Allocations
|
1988
|
1989
|
1990
|
1991
|
1992
|
1993
|
|
1
|
Federal govt.
|
13.92
(55%)
|
14.91
(35%)
|
22.71
(50%)
|
31.86
(50%)
|
47.1
(50%)
|
58.2
(48.3%)
|
|
2
|
State govt.
|
8.23
(32.5%)
|
8.807
(32.5%)
|
13.63
(30%)
|
19.18
(30%)
|
23.58
(25%)
|
28.8
(24%)
|
|
3
|
Local govt.
|
2.53
(10%)
|
2.71
(10%)
|
6.81
(15%)
|
9.59
(15%)
|
18.87
(20%)
|
24.0
(20%)
|
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