1

EVENUE ALLOCATION AND NIGERIA’S UNITY

AND DEVELOPMENT
AN APPRAISAL OF AKWA IBOM STATE.

A RESEARCH PROJECT

BY

EDEM, FAVOUR IME

REG. NO. 16126235

SUBMITTED TO

THE DEPARTMENT OF PUBLIC ADMINISTRATION

HERITAGE POLYTECHNIC,
IKOT UDOTA, EKET
AKWA IBOM STATE.
NIGERIA

AUGUST, 2018
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REVENUE ALLOCATION AND NIGERIA’S UNITY

AND DEVELOPMENT
AN APPRAISAL OF AKWA IBOM STATE.

A RESEARCH PROJECT

BY

EDEM, FAVOUR IME

REG. NO. 16126235

SUBMITTED TO

THE DEPARTMENT OF PUBLIC ADMINISTRATION

HERITAGE POLYTECHNIC,
IKOT UDOTA, EKET
AKWA IBOM STATE.
NIGERIA.

IN PARTIAL FULFILLMENT OF THE REQUIRMENTS

FOR THE AWARD OF HIGHER NATIONAL DIPLOMA
(HND) IN PUBLILC ADMINSITRATION

AUGUST, 2018
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DECLARATION

I declare that this project titled “Revenue allocation and Nigeria’s unity
and development and appraisal of akwa ibom state was conscientiously
carried out by Edem, Favour Ime with Registration No: 16126235 under
the supervision of Dr. Ukpong of Heritage Polytechnic, Eket.

Edem, Favour Ime ……………………………

Student Signature/Date
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DEDICATION

This project is dedicated to the Almighty God and to the lovers of

learning and knowledge.
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CERTIFICATION

This is to certify that this project has been read and approved as

meeting the requirement of the Department of Public Administration,

Heritage Polytechnic, Eket, for the award of Higher National Diploma

(HND) in Public Administration.

Dr. Prince Ukpong …………………………..

Supervisor Signature/Date

Dr. Bennie ………………………

Head of Department Signature/Date
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ACKNOWLEDGEMENTS
My special thanks go to the Almighty God for standing by me throughout
these years in the polytechnic.
I acknowledge the works of the various authors consulted in the course of
writing this project. I also appreciate the suggestions from my colleagues
especially in the department of Heritage Polytechnic Eket.
I also will not fail to commend the management for providing a good
environment for the research. In a very special way, I thank the members of my
family for their support and encouragement. I also thank my husband – Uko and
my children – EdiomoAbasi and MmenimAbasi. I am most sincerely grateful to
my mum for her wonderful assistance.
I will not fail to record my profound appreciation to people like
Deaconess Chosen Udo, my aunty, Mrs. Inemesit Akaiso, Mrs. Emem Umanah,
Mrs Rejoice Archibong, my friend Margaret and others too numerous to
mention here. My most sincerely gratitude also goes to my supervisor, Dr
Ukpong who has been like a father to me. May the Almighty God continue to
bless you in Jesus Name. Amen
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ABSTRACT
This research work focuses on Revenue Allocation and Nigerian’s Unity; An
Appraisal of Akwa Ibom State. It aimed at finding out if there is a relationship
of Revenue Allocation and Nigerian’s unity and development. This is informed
by the disunity, complaints, agitation for increase in Derivation sharing
formula and resource control going on in Nigeria.
The project covers Akwa Ibom State Internal Revenue Service. In carrying out
this research, questionnaires were constructed, and personal interviews were
made. The population was the whole staff of the State Ministry of finance
numbering 560 staff. Chi-square (X2) statistical method was used to test the
hypothesis. The work concluded that resources allocation to state and local
government is not sufficient; also the allocation instead of bringing peace, unity
and progress is causing political instability, disunity and uneven/poor
development. Recommendations were made that the federal government should
develop a more accurate/considerate revenue allocation formula that will take
care of the financial problem of the state; also the derivation formula,
population; land mass used as Criteria for allocation of resources should be
reviewed.
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TABLE OF CONTENTS

Title Page - - - - - - - - - -
Declaration: - - - - - - - - -
Dedication: - - - - - - - - - -
Certification- - - - - - - - -
Acknowledgement: - - - - - - - -
Abstract: - - - - - - - - - -
Table of Contents - - - - - - - - -
List of Tables: - - - - - - - - -
CHAPTER ONE
1.0 Introduction:- - - - - - - - -
1.1 Background of the Study: - - - - - -
1.2 Statement of the Problem: - - - - - -
1.3 Objective of the Study: - - - - - - -
1.4 Significance of the Study: - - - - - -
1.5 Research Question: - - - - - - -
1.6 Research Hypothesis: - - - - - - -
1.7 Definition of Terms: - - - - - - -
1.8 Scope and Limitation of the Study: - - - - -
1.9 Organization of the Study : - - - - - -

CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.0 Introduction: - - - - - - - -
2.1 Conceptual Frame Work: - - - - - -
2.2 Theoretical Frame Work: - - - - - -
2.3 Revenue Allocation - The Nigerian Experience: - - -
2.4 Review of Major Empirical Studies: - - - -
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2.5 Fiscal Relationship That Subsists Among the

Three Tiers of Government: - - - - - -

2.6 Issue of Finding and Economics, Unity Development: -

2.7 Inter Governmental Relations in Revenue Allocation: - -

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction: - - - - - - - -
3.2 Research Design: - - - - - - - -
3.3 Sources and Method of Data Collection: - - - -
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CHAPTER ONE
1.0 Introduction
This introduces background, statement, objective and others.
1.1 Background of Study:
Every government pursues economic development by trying to
achieve macroeconomic objectives in a particular system of government.
Various systems of governments include federation, unitary, and
confederation. The Nigeria’s system favours federalism. The federation
of Nigeria achieves her macroeconomic objectives by performing the
functions of resources allocation, income distribution/re-distribution, and
economic stabilization within the central government that is federal
government and its units (state and local government). This system of
performing government functions in different tiers of government is
called fiscal federalism (Buhari 2001: Likita 1999).
Fiscal Federalism is a system of taxation and public expenditure in which
revenue raising powers and control over expenditure are vested in various
levels of government to the smallest unit of local government (Anyafo,
1996).
Basically, fiscal federalism emphasizes how revenues are raised and
allocated to different levels of government for development.
A large body of literature exists on Nigeria fiscal federalism
particularly with reference to revenue allocation. Despite the profound
and lengthy discussions that have taken place on the subject for about
four and a half decades, consensus has not been reached concerning the
optional formular to adopt to achieve desire economic development
(Abodade, 1985, Buhari 2001). Thus, the issue of revenue allocation has
been a re-occurring theme in Nigeria’s fiscal federalism.
There is the problem of how to allocate revenue to different tiers of
government in relation to the constitutionally assigned functions. The
 11

discordance between fiscal capacity of various level of government hand

their expenditure, responsibilities, the non correspondence problems, is a
sticking feature of the Nigerian federal finance (Mbanefoh &
Egwaikhide, 2000). There is also the problem of how revenue should be
shared and the states and local councils. Several studies mainly
exploratory (such as Aluko, 2000, Ekpo, Suberu, 2006, Uche and Uche,
2004) were carried out on how revenue is shared within the federal
government, state government and local government and the basis of
sharing the revenue to these federating components. But these studies
could not empirically study the impact of the revenue allocation on
economic development of Nigeria.
Other studies, such as Aigbokhan (1999) Emergini and Anere (2010),
Akeem (2011) and Usman (2011) carried our empirical studies on the
effects of the level of decentralization of government activities including
revenue allocation on Nigeria’s economic development, using descriptive
approach. However, this study intends to examine empirically how
different revenue allocation over the years impacted on unity
development of the country-Nigeria

1.2 Statement of the Problem

Revenue allocation to the three tiers of government has created a
lot of problems and challenges to both the military and the democratic
government; and has been characterized by economic and political
instability, non permanent fiscal units, financial weakness, unstable
constitutional framework et. Even as government used the principles of
derivation, minimum responsibility, population, absorption, capacity,
land mass as criteria for allocation/appropriation.
The sharing of funds from the federation account is one of the
contentions and sensitive issues in the Nigeria policy. This has remained
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a central element of interfacial relations, in Nigeria. The problem and the

case in issued is on how the sharing has developed/generated unit and
progress in the country among the people and the tiers of government.
One of the problems of Nigeria federation is the issue of revenue
allocation, sadly with the twin issue of ethnic politics and rivalry, revenue
allocation has become one of the key sensitive areas that require delicate
handling whenever the subject matter is discussed.
Above all, the change in internal geographical structure of the
nation as a result of string and continuous agitation for state creation has
led to distortion in the revenue allocation formular and this has weakened
the fabrics of federalism, while the impact is not felt positively in the area
of economic development, unit and progress.
This research project is carried out to examine the impact of revenue
allocation and Nigeria’s unity development.

1.3 Objective of the Study

The general objective of the study is to investigate the impact and

appraise of revenue allocation has any positive or negative effect in unity
development in Nigeria.
A. Broad objective
B. Specific objective
1. Specifically, the study seeks to appraise the revenue allocation pattern
and the impact on the unity development of the country.
2. It is also to determine the factors responsible for the level of unity
development as a result of revenue allocation.
3. To recommend ways/means of securing unity development in the
country through effective/proper allocation of resources.

1.4 Significance of the Study

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This study is very important to the government functionaries,

revenue allocation authorities, the political class and the general public. It
highlights vital variables in revenue allocation and its implication in
economic/political development and development of unity and progress
in the nation.
The public will benefit from this study as it will reveal the
acceptable formular for the sharing of revenue. It will also expose readers
to know the nine commissions appointed since 1964 till date to work on
appropriate revenue allocation formular and criteria.
Students will also benefit from this project as it will fulfill the
academic requirement and enhance the discovery of the facts on revenue
allocation and form the basis and reference for further research.
Finally, the recommendation which the researcher will advance at
the end of this work will go a long way in challenging government and
moving it, along with individuals and non-governmental organization
(NGOS) to live up to expectation in enhancing rapid growth in economic
activities, unity of purpose and general development.

1.5 Research Questions

The following research questions have been formulated
1. Is there any relationship between revenue allocation and unity
development in Nigeria?
2. Does revenue allocation generate growth in the economy and foster
unity and progress.
3. Is poor and inefficient revenue allocation responsible for low growth
rate to Nigerian economy?
4. How does the state and local government strive for growth despite the
challenges in revenue allocation?
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5. Is the allocation of revenue no matter how lean, well utilized and

channeled for economic development and unity of purpose?
6. What factors could be put in place to change the situation in order to
ensure improvement in the economy and political terrain?
1.6 Research Hypothesis
The following hypotheses have been formulated in null and alternative
form.
1. Ho. There is no significance relationship between revenue allocation
and economic unity development in Nigeria
Hi. There is significant relationship between revenue allocation and
economic/unity development in Nigeria.
2. Ho. Revenue allocation does not generate growth in the economy or
foster unity and progress.
Hi. Revenue allocation generates growth in the economy and foster
unity and progress.
3. Ho. Poor/inefficient revenue allocation is not responsible for low/slow
growth rate to Nigeria economy.
Hi. Poor/inefficient revenue allocation is responsible for low/slow
growth rate to Nigeria economy
4. Ho. States/local governments do not strive to grow/develop result of
internally generate revenue to supplement that of consolidated revenue
account
Hi. States/local governments strive to grow/develop as a result of
internally generated revenue to supplement that of consolidated
revenue accounts.
1.7 Definition of Terms
The following terms and phrases are defined to give clearer meaning to
the reader.
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Revenue: Revenue is the money that a government receives from taxes,

fines, licenses, grants, or that an organization receives from its business.
Such revenue could be collected from statutory allocation, Taxes, rates,
interest, re-imbursement etc.
Revenue Allocation: Is the distribution of total income through
government structure for development, administration, security etc. Also
refers to the sharing of revenue and other resources generated in the
country among the federal, state and local government. It often involves a
complex process of determining how and where to channel revenue in
order to best maintain the viability and operating structure of an
organization.
Annual Revenue: Is defined as the total income generated from the sales
of goods/services, and funds obtained as rates/taxes in one fiscal year by
an organization.
Consolidated Revenue: Is the central funds total as main account in most
of the countries in the common wealth or nation. It is something known
as consolidated revenue fund or simply the consolidated fund.
Sale Revenue: Is the most common form of revenue and is simply the
revenue that is received when selling a product that the business
produced.
Interest Revenue: This is the interest that is received from the money that
is placed in a bank account.
Service Provision revenue: Is the income received from provision of
service as different from product.
Lease Revenue: This can cover a number of items. Some businesses hire
out their service and items. This can be classified as lease revenue.
Tax Revenue: This is the income or earnings gotten from levy in a form
of taxes or rates.
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1.8 Scope and Limitation of the Study:

The scope of this study covers Akwa Ibom State internal revenue
service, Ministry of economic development and planning and the entire
economic environment and hangs on certain factors like revenue
generated, application of revenue, impact on the economy, development
level and attainment of unity and progress, for a given period of time.
The limiting factors are – cost: The amount incurable to get to various
ministries, units, centres to obtain data (information) for the study. The
financial demand appears costly that the researcher could afford.
Time factor: While carrying out the study of this magnitude,
specific/appropriate time frame should allocated for it, than combining
with the regular class lecturers and other school activities.
Attitude of respondents: The attitude shown by respondents in the course
of obtaining information is a cause for concern. Some respondents show
great apathy in releasing information thereby reducing the possibility of
eliminating bias.

1.9 Organization of the Study:

This work is structured in five chapters. Chapter one deals with the
introductory aspect of it, which includes the statement of problem,
objective of the study, significance, research question and statement of
hypothothesis.
Chapter two is the literature review, and it covers theoretical
framework of the study and the review of the work of experts or authors
in this field of study, Revenue allocation and Nigeria experience, the
impact on the economy and unity development.
Chapter three focuses on the methodology and design for collection
of data and instrument for collection and the method of presentation of
the data collected.
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Chapter four deals with the actual presentation of the data,

analysis, and comment on findings.
Finally, chapter five deals with the summary of findings,
discussion, conclusion and the recommendation.
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CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction
This chapter concentrates on the review of work of various authors in the
field of study.
It’s covers
i. conceptual frame work
ii. Theoretical framework
iii. Revenue allocation – the Nigeria experience
iv. Review of major empirical studies
v. Fiscal Relationship that subsist among the three tiers of
government.
vi. Issue of funding and economic, unity development
vii. Intergovernmental/Fiscal relations on revenue allocation
The case of federal, state & local Government.
2.1 Conceptual Framework
According to the revenue allocation function of the government,
revenue is allocated to federating units of a country for economic
development, otherwise called fiscal federalism. Nigeria’s fiscal
federalism has emanated from historical, economic, political,
geographical, cultural, and social factors. In all these, fiscal arrangements
remain a controversial issue in allocating distributable pool account
(DPA) of the federation since 1946 (Ekpo 2004).
A federation emerges either by aggregation of previously
independent sovereignties to become a single sovereign state such as
Australia, Canada, and united state, or by devolution, that is,
decentralization of certain political authority to sub-national government
within a sovereign state such as Nigeria, India, and Pakistan (Prest 1975,
Aboyade 1985, as citied in Anyafo 1996). Thus, along this line, fiscal
 19

federalism could be taken to mean a constitutional arrangement or a

system of government where revenue and expenditure functions,
otherwise called fiscal responsibilities, are divided among the tiers/levels
of government, that is federal, state and local government. (Akindele
2002, Likita, 1999, Wheare 2004). In undertaking this division,
economics emphasizes the need to focus on the necessity for improving
the performance of the public sector and the provision of their services by
ensuring a proper alignment of responsibilities and fiscal instruments.
The Nigerian federal system plays a preeminent role in this
distributive process. Succinctly, owing to its explicit legit nation and
accommodation of sectional-territorial constituencies, the federal system
provides the structural and institutional frame work for the organization
and mediation of the ethnic competition for public resources in Nigeria,
(Suberu 1994, 2000) To understand the concept of revenue allocation,
public revenue must be defined. Public revenue is the income that accrues
to the government to finance its economic activities. This can be raised
from different sources that include taxation, loan, sales of public assets,
grants and aids, gift and donations (Likita 1999). Stephen and Osegie
2005 share the same view on public revenue but broadly classified the
sources into tax revenue and non-tax revenue. The revenue generated
within the federation jurisdiction is shared to the federating units.
Olowononi (2000) broadly defines revenue allocation to include
allocation of tax powers and the revenue sharing arrangement not only
among the three levels of government but among the state government as
well. Under governments distribution function, it redistributes income
and resources to promote national unity and equity (Jimoh, 2003).
Revenue allocation can be described as a method of sharing the centrally
generated revenue among different tiers of government and how the
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amount allocated to a particular tier is shared among its components for

economic development.
Economic development is simply a term used to refer to economic
well-being of a country by promoting economic growth and good
standard of living. Adams (2006) defines economic development as the
elimination or reduction of poverty, inequality, and unemployment within
a growing economy. Mansell and When (1998) said that economic
development involves economic growth, namely the increase in per capita
income and attainment of standard of living equivalent to that of
industrialized nations. Musgrave and Musgrave, (2004) lend credence to
the fact that the requirements for economic development in low-income
nations include those needed for consistent economic growth as
compared with highly developed nations. In the above definitions,
economic growth stands as a transiting phenomenon via which economic
development is achieved.
This means that there cannot be economic development without
economic growth but there can be economic growth without economic
development. This situation is evidence in so many less developed
countries like Nigeria. Economic growth is the increase in real GDP and
this study considers it as economic development indicator.

2.2 Theoretical Framework

Revenue allocation is expected to grow the economy as explained
by growth theories. The neoclassical economists are instrument in the
development of the growth theory. Solow (1957) establishes the Harrod-
Domtar-model in which the long run growth rate is exogenously
determined by the savings rate in the economy.
Modification of the neoclassical growth theory because possible
due to its short comings: the inability of the growth model to explain
 21

savings rate and rate of technological progress as exogenous factors. A

new growth theory was introduced in the early 1980’s as endogenous
growth theory (Akanbi & Du Toit, 2011).
Endogenous growth theory says that economic growth depends
primarily on endogenous factors, such as human capital, innovations,
knowledge, and positive externalities (Romar 1994). The endogenous
growth theory holds that policy measures with an economy, such as
revenue allocations positively influence the long run growth rate of an
economy. Such as increase in real GDP. This study adopts the
endogenous growth theory model for its analysis.

2.3 Revenue Allocation: The Nigerian Experience

Revenue is allocated to the Nigeria Federating unit to meet up with
their various constitutional assigned expenditures. Since Nigeria became
independence in 1960, the assignment of government functions among
the three tiers of government have not changed significantly except for
few exceptions during the military regimes. Several constitutions of the
federal republic of Nigeria contain decentralization of functions: the
exclusive list contains the functions reserved for the federal government
only, whereas the concurrent list has the functions for the federal and the
state governments and where there is a conflict, the federal government
shall prevail. The functions reserved for the sates are found in the residual
list.
A number of changes had occurred with respect to who has the
right to revenues. The most significant is probably that of mining rents
and royalties. Before 1959, regional government have right to 100% of
mining rents and royalties, but with the production and exploration of oil
in 1958, revenue from mining rent and royalties was distributed as
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follows: mineral regions, 50%, Federal 20% and DPA, 30% (Adedeji
1969)
Another change that is significant was in 1994 on sales tax than
states (or region) hitherto had 100% right. This was replaced by value
added tax (VAT) and is to be federally collected (Jimoh 2003) today;
federal government has the right to 35% of this revenue. In virtually all
cases, the changes have been in favour of the federal government at the
expense of the regions.
Since 1946 when the first seed of federalism as sown in Nigeria, all
major constitutional charges and/or changes in administration have been
associated with attempts to modify or change the revenue sharing rights
of the different tiers of government (Orwasa 1995) This revenue sharing
is in the form of vertical allocation (i.e. along the federal, states, and the
local government) and horizontal allocation (i.e. within states or local
governments) About nine fiscal commissions were appointed to examine
Nigeria revenue sharing arrangement between 1948 and 1988. These
include Philipson (1948), Hicks (1952) Chick (1954) Raisman (1959),
Binns (1964) Dina (1968), Aboyade (1977), Okogbo (1979) and Danjuma
(1988) commission (Akindele, 2002; Ekpo 2004), Jimoh 2003; Ovwasa,
1995, Udeh, 2002). The recommendations of these commissions had
often influenced the revenue sharing formula adopted at the respective
periods. The determined the tiers of government that have rights to
revenue collected. Presently, the constitutionally created Revenue
mobilization and fiscal commission influence revenue allocation in
Nigeria. Over the years, revenue collected were allocated to influence
economic growth and development in the country.

2.4 Review of Major Empirical Studies.

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Martinez-Vazquez and Menab (2002) in a study finds one that

allocation of revenue significantly reduces the growth of real GDP per
capital in developed countries. A similar cross-country study on fiscal
decentralization in unitary and federal countries for the period 1971-1990
using annual data, Yilmaz (2000) finds that decentralization results in
growth of real GDP per capital in the unitary countries and
decentralization is insignificant to influence growth of real GDP per
capital in federal countries. These studies are based on foreign
economics.
In Nigeria, Akinlo (1999) finds that state governments public
expenditures are influenced by federal grants during the period of study
using ordinary least squares (OLS) technique. Similarly, in the study of
Akujuobi and Kalu (2009) using the same econometric technique (OLS)
finds significant effect of statutory allocation on financing state real
assets investments. Aigbokhan (1999) finds a significant relationship and
a high concentration ratio of expenditure and revenue using OLS
technique to examine fiscal decentralization and economic growth in
Nigeria.
The impact of fiscal decentralization of revenue to individual
federating units on economic growth of Nigeria is demonstrated in the
studies of Akem (2011) and Usman (2011), both shares of federal
government and local government’s revenue from federation account.
Contribute to economic growth process in Nigeria.
The study finds no contribution of shares of state revenue from federation
to economic growth process in Nigeria, which is contrary to the findings
of the studies of Akinlo (1999) and Akujiobi and Kalu (2009). Usmaa
(2011) uses the growth rate of shares of the federating units from
federation account as provides and finds direct relationship between
revenue allocation to federal, states, and local governments and economic
 24

growth process in Nigeria. All of these studies made use of OLS

econometric techniques which does not show causality and direction of
causality.
Other studies (such as Emangin & Anere, 2010, Olofin, Olubusoye,
Bello, Salisu, & Olalekan, 2012) use different analytical technique such
as t-test correlation.
Co-efficient and cluster analysis, respectively to examine revenue
allocation in Nigeria. Emengiai and Anere (2010) find no influence to
socioeconomic status of states and local councils by the level of revenue
accruing to them from the federation account.
In Olofin eral, (2012), the results show a small number of states
constituting each of the clusters in terms of statutory allocation. Jimoh
(2003) utilizes a causality test using error correction model (ECM) to
ascertain the long-term causal relationship and short-run dynamics
between the degree of decentralization and economic growth in Nigeria.
He finds out that more decentralized governance; in terms of increase in
number of local governments and increase in transfer of revenue from
federation account to states and local governments influence economic
activities and growth in Nigeria.
Jimoh refuses to carry out preliminary test of time series data using unit
root test and co integration test.
However, the present study differs from Jimoh, because it adopts the
preliminary test of time series data, and ECM and pair wise Granger
Causality test to ascertain the casual relationship and the direction of
causality between revenue allocation and real GDP in Nigeria.
 25

2.5 Fiscal Relationship that Subsists Among the Three Tiers of

Government

The problems that confront the three tiers of government with regard to
fiscal relations include:
1. Who should collect what funds or problem of tax Jurisdiction?
2. How best to share National revenue
3. The manner of channeling funds from one level of government to
another. Since Nigeria adopted federal arrangement in 1954 the
controversy of “who gets what” and “who collects what” had plagued
the successive levels of government. Invariably the federal
government had always controlled the most lucrative source of
revenue, such as customs and excise, and taxes on oil. The state
government equally controlled relatively lucrative sources of revenue,
including the personal income tax. The local government which until
1976/1979 were left at the mercy of state government. In 1978, a
major decision was taken that National revenue should be shared
among the federal, State and local governments. This provision was
entrenched in 1979 constitution; however, the federal government in
1983 had found a solution to the problems. At present, revenue
sharing formula among there three tiers of government is as follows;
Federal - 50%
State - 25%
Local Govt. - 20%
Special fund - 5%
It can still be asserted that as presently constituted, funds available to
local government councils are grossly inadequate considerily huge
responsibilities councils have to shoulder. For example in Akwa Ibom
state, the 31 local government used to N share now this amount has been
 26

reduced to N. In the final analysis, it is true that all monies according to

most council from all sources are not enough to cater for the multifarious
responsibilities of these councils, as some state cannot provide to the
councils 10% of internally generated revenue and the running of the joint
accounts.

2.6 Issue of Funding and Economic, Unity Development

It may be of paramount interest to examine possible areas of

intergovernmental relationship existing between federal and local
government in terms of funding. In this case Akwa Ibom State is cited as
a case study. The state was carved out of the former Cross River State in
1987, whereas the state was backward in terms of development. The
military governor agitated for proper funding for a smooth take off, but
what was stated as applicable formular remained a criteria, until the time
of Governor Victor Attah who along with others agitated for resource
control and payment by principles of derivation. the federal government
was taken to court. With the lean resources allocated and some known
issues of misappropriation of the little, the state is still not developed as
expected. Industries which were budgeted for had not seen the light of
day, whereas the state is known to produce the highest percentage of
crude oil for export. The misappropriation and diversion of fund to
certain areas and channeling to some projects in certain local government
has not made way for peaceful co-existence and unity. Therefore all the
existing layers of government in Nigeria seem to imbibe the concept of
unity in diversity as a golden rule that must be observed as a way of life.
This appears to be the only fundamental approach we can foster unity of
purpose and co-operation. Effective administration between any level of
government can only be possible of the relationship between the
interacting operators are motivated by co-operative rational action.
 27

The relation should be the one that sees effort of the other level as
complimenting one another, for overall interest of the people. It should
not be the relationship of the horse and the rider. Action are co-operative
and rational to the extent that actors direct their efforts towards
optimization of the desired objectives. It could be assumed that the goals
of both the state and local government among other things include
enhancing economic and social development, provision of basic
necessities of life, and the general well being of the people to foster
peace, unity and progress. It is therefore imperative that the nature of the
relationship between the state and local government is characterized more
by co-operative rational action than by conflict and competition. The
local governments in the main should be seen, treated as useful and
indispensable partner of the state governments in National development
and in delivering of goods and services to millions of them in the rural
area.
Since the local governments maintain loyalty for its level to
national domain, it can perform this function if they are adequately
funded and given enough initiative to embark on productive programme
for unity development. The present system of revenue allocation which
allows the federal and state government to retain the bulk of the National
resources is not satisfactory. A more favourable and equitable system of
revenue allocation should allow the local government to retain more that
25% of the national resources. The local government should serve as
intermediate organization to both federal and state governments in
planning and execution of such projects as urban market, cottage
industries, hospitals, schools, commercial farms, water and electricity.
For successful accomplishment of all these, the state planning strategy
should be redesigned to emphasize planning from below and not planning
from above as hitherto was the case in the past.
 28

2.7 Intergovernmental Relations on Revenue Allocation

A case of federal, state and local government intergovernmental
relation is the interactions and interplay existing among the three layers
of government, as well as relations among various governmental
functionaries operating within the system. It works well when funding
and provision and utilization of funds and amenities are in place. This
interaction should not end with a country, but extend to other countries.
Consequently, the objective of intergovernmental relations in Nigeria
should be summed up as follows;
1. To promote peace, unity and harmony among the three local
governments to general impact on the persons within the tiers of
government.
2. To enhance the emergence of co-operative rather than competitive
federalism.
3. To ensure effective and efficient utilization of available human,
material and financial resources among the various level of
government.
4. To accelerate the achievement of self reliant economy.
5. To minimize inter-jurisdiction conflicts among the various levels of
government
6. To solve the problems of rural and urban poverty, ignorance and
suffering of the people.
7. To foster greater national integration through the activities of the three
levels of government.
In the state-local government relations as in all other patterns of
intergovernmental relations, it is a condomeration of inter play of human
beings. Government functionaries and officials, interest groups, with
varied and sometimes conflicting values of interests that set the tone and
patterns of relationship.
 29

These functionaries and officials at state level will include the state
governor and his deputy, commissioners, senior administrative and
professional officers. At the local government level, the relevant political
chieftains include, chairman of council, paramount rules, supervisors,
secretaries, community development officers, and key/senior citizens of
the local government. As people large a heterogeneous historical roots,
the conception and perception of authority, the general attitude to work
with commitment towards achieving private/public goals and objective,
revenue allocation should adequate, steady and consistent in order to
foster the needed unity development for the generality of the society.
Despite the review, debate and discussion at various quarters the
populace seem to be dissatisfied with all forms of formulars, criteria and
basis for allocation of resources.
Apart from the formular earlier discussed, the vertical allocation of the
federated account is shown below.

UNIT PROPORTION

Federal Government 48.5%

State Government 27.0%

Local Government 20%

Special fund 7.5 %

A. Federal capital territory 1%

B. Stabilization 1%
C. Derivation 1%
D. Development of oil mineral producing areas 3%
E. General Ecology 1%

Source: Anyanwu 2009

 30

PRINCIPLES PROPORTION

Minimum responsibility of government

(Equality of state) 40%
Population 30%
Social development 10%
A. Education 4%
B. Health 3%
C. Water 3%
D. Land mass & Terrain 10%
E. Internal revenue effort 10%
F. Source Anyanwu 2009 100%
The forgoing tables contain information on the two aspects of the federal
account allocation – vertical and horizontal aspects. The vertical aspect
discusses allocation of revenue among the various tiers of government and other
specific or strategic consideration.
And as can be seen from the table, the proportion or percentages of the
federation account allocated to the various tiers of government and other
headings have been changing more or less, from one time to the other in line
with the perceived socio-economic objective or tasks of the different tiers of
government at any point in time, but these still generate allegations.
Horizontal federation account allocations means the sharing of the
vertical proportion of the states, share of that federation account, using certain
principles as may be in operation at the time. The table clearly shows the
different revenue allocation principles that have been tasted/used in sharing the
state’s share of the federation account among the state. And as should be
expected, each member of the horizontal component unit naturally will want to
maximize the application of the principle that favour its specific peculiarities.
 31

This has often constituted the primary source of conflict and separatist
agitation. But as should be expected, it may not be very easy to reconcile the
interest of all units, at a time. No wonder, the ever changing principles of
horizontal revenue allocation in Nigeria. However it is considered that the
overall objective of public finance-attainment of different resources allocation,
distributive justice, redistribution of national wealth/income, sustained
economic growth and development-economic stabilization and maintenance of
geographical / regional / sectoral balance.
 32

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This Chapter presents the methodology of this work, which is the
system the researcher adopts in collecting data and analyzing same. In
this case the researcher presents the research design, source and method
of data collection, population and sampling Technique and data analysis
technique.

3.2 Research Design

This study adopts the descriptive and analytical study design,
because the design used in any research undertaking is determined by the
native of the research problem and purpose of the study. Consequently,
the study design and methodology adopted is a field study. Interviews
will afford the researcher the opportunity to pursue matters to their
logical ends as direct choice of ques5tions could not possibly provide
enough information. According to Ndaji 2004, “A descriptive research is
concerned with the collection of data for the purpose of describing and
interpreting existing condition, prevailing practices, beliefs, attitudes and
ongoing processes.” Hence, the description and interpretation of the
existing relationship between Revenue allocation and unity development
will be ascertained.

3.3 Source and Method of Data Collection

The data used for the study are from two major sources, viz
primary and secondary sources.
The primary sources: These sources of data are used to obtain first hand
data, the major instrument used for collection of primary sources
comprises questionnaire and personal interview.
 33

The secondary sources: These are information collected from opinions of

experts on the subject matter. The secondary sources of data come from
academic and private library books, some relevant publications, loones ,
text books, journals, Newspaper and the internet .
Method of Data Collection
A well structured respondent were administered on the sampled
respondents. The questionnaire is structured into section A and B. Section
A comprises of personal data of respondents as to Age, sex, educational
qualification, rank/status in service and years of experience. Section B
contains the question based on the subject matter.
Oral interview based on some drawn up question were for those
categories of staff who could not make time out to go through the
questionnaire.

3.4 Population and Sampling Technique

Population implies the total number of subject s, element, and
items, used under investigations.
Sampling is a short cut method of investigating a whole population. In
reality, there is simply not enough time, energy, money,
labour/manpower, equipment to measure every single item with a parent
population or a whole sampling frame. Therefore an appropriate sampling
strategy is adopted to obtain representative and statistically valid sample
of the whole.
The population in this case comprised of the whole staff of state ministry
of Finance. Accountant General office numbering 344 and ministry of
local government on chieftaincy affairs, numbering, 216 with a grand
total of 560. The two ministries were selected as the _____ in higher
ranks could give reliable information on Revenue allocation and its
impact on unity development.
 34

According to Ibanga (1996), Sample fraction is used to determine

statisfically appropriate sample size from a large population. Hence, for
the population of 560, the sample fraction is used. The formula is given
as nN=1/10 x N/1
Where n = Expected sample size
N = Population
n = 560 Therefore n = 1/10 x 560/1 = 56.
Therefore the sample sizes of 56 constitute the respondent, stratified into
ranks and ministries.
Ministry of finance – (MOF) Ministry of local government
MLG. of 32 and 24 respectively.
Ranks MOF MLG TOTAL PERTECENTAGE
Management 5 3 8 14
Administration 11 9 20 36
Finance/Budget 9 7 16 28
Statistics 7 5 12 22
Total 32 24 56 100

Among the staff in each department a random sampling method was

chosen where the department had more number than the stratification.
Royers (1999) stated “Radom sampling uses the principles of
randomization which is a procedure of giving every subject in a
group/sub-group an equal opportunity/chance of appearing in a
selection”.
 35

3.5 Data Analysis Techniques

In the analysis of data, the mathematical/statistical model were required.
All information and data collected from respondents through
questionnaires will be quantitatively and qualitatively analyzed. The use
of simple frequency/percentage table became obvious descriptive
statistics according to Dodge (2003) provides simple summaries about the
sample and about the observation. The chi-square statistical method will
be used to test the hypothesis formulated in chapter one of the study.
Chi- square (X2) formula is given below
x2 = E (Fo-Fe )2
Fe
Where Fo = observed frequency
Fe = expected frequency
E = Summation
In a continuing table, one expected frequency of each call is calculated
= Number of response variable x 100
Number of Respondent 1
Degree of freedom (df) in the contingency table is given as Df = (R-1) (C-1)
Where
R = The number of rows c = Number of columns.
Rennis Likort 1989 – Theory of using yes, or NO, strongly agreed, agreed,
disagreed and undecided was also used in the statistics from the questionnaire.
Decision rule: The calculated chi-square (x2) is then compared with critical
table of value. if the calculated chi square (x2) exceeds the critical value, then
the Nul hypothers is rejected and the alternative accepted.
 36

CHAPTER FOUR
4.1 Introduction
The presentation/analysis and interpretation of data in any research
work is the core of the exercise as it points to a meaningful decision and
report. Thus, this chapter focuses on the presentation analysis and
interpretation of all the relevant data collected for the purpose of the
research work. The Hypothesis formulated in chapter one by the research
shall be tested in order to ascertain their validity.

4.2 Presentation of Data & Analysis

In order to achieve the objective of the study the data collected are
presented, analyzed and interpreted in this chapter. The validity of the
hypothesis formulated in chapter one are examined. The analysis are done
using table of frequency/percentage. The interpretations are based on the
answers given by the respondents in the questionnaire, Fifty six (56)
questionnaires were administered to sampled staff and collected back for
the exercise.

TABLE 4:1:1 No of Questionnaires Administered and Collected Back

No administered % No collected back % Remark
56 100 56 100
56 100 56 100 Satisfactory
Sources: Field survey 2018.
The table show that 100% or 56% of the questionnaire administered on the
respondents were returned and used for the presentation analysis

TBALE 4:1:2. Distribution as to Sex of Respondents:

RESPONSES VARIABLE NO OF RESPONDENT PERCENTAGE
 37

Male 39 70%
Female 17 30%
Total 56 100
Sources: Field Survey 2018
In the above table, 70% or 39/56 of the respondent are male, whole 17/56 or
50% are female. The gender distribution is adequate

TABLE 4:1:3 Distribution as to Qualification of the Respondents

RESPONSES VARIABLE NO OF RESPONDENT PERCENTAGE

WASC, NECO O/C 8 14

OND, NCE 10 18

BSC, HND, BA 35 63

MSC, MBA 2 13

PROFESSIONAL 1 2

TOTAL 56 100
Sources: FIELD SURVEY 2018.
Table 4:1:3 above show that 14% of the respondent passes they O/C
GCE/WASC/NECO Certificate while 18% have NCE/OND. 63^ of the
respondent are graduates with BSC, BA OR HND., 3% have higher degree of
MBA, MSC while 2% are professional. The qualification of the respondents
justifies the authenticity of the project.
 38

TABLE 4:1:4 Distribution as to Age of Respondents

RESPONSES VARIABLE NO OF RESPONDENT PERCENTAGE

18 – 25 9 16

26 – 30 31 55

31 – 40 11 20

41 – 50 4 7

Above 50 1 2

TOTAL 56 100

Sources: Field survey 2018.

In the table shown above, 16% of the respondent are between the ages of 18
and 25 yrs, 55%, 26 and 30%, 20%, 31% and 40% yrs, 7%, 41 and 50 while just
2% above 50 yrs. The age distribution shows a good level of maturity.

TABLE 4:1:5: Distribution by Years of Experience

RESPONSES VARIABLE NO OF RESPONDENT PERCENTAGE

1 – 10Yrs 7 13

11 – 20yrs 24 43

21 – 30 yrs 23 41

Above 30 2 3

Total 56 100
 39

Sources: Field Survey 2018

TABLE 4:1:5 above shows that 13% of the respondent have 1 to 10 yrs of
service/experience. 43%, 11 – 20 yrs, 21 – 30yrs experience 41% while 3% are
of over 30 yrs experience. The respondent collectively and by the average have
sufficient experience to express that views/opinion on the subject matter.

TABLE 4:1:6, Distribution by Rank/Status

RESPONSES VARIABLE NO OF RESPONDENT PERCENTAGE

Management (Executive) 8 14

Senior staff 32 57

Officers 11 20

Junior staff 5 9

Total 56 100
Source: Field Survey 2018
In the above table (4.1.6), 14% of the respondents are in the executive
management cadre. 57 are senior staff, while 20% are officers in various units.
Only 9% are junior staff. The distribution shows a high level of knowledge,
experience and maturity

TABLE 4.1.7: Does Revenue Allocation have Significant Relationship With

Unity, Development of the Country?
RESPONSES VARIABLE NO OF RESPONDENT PERCENTAGE
YES 49 88
NO 7 12
 40

TOTAL 56 100
Source: Field Survey 2018
In the above table, 88% of the respondence stated that revenue allocation has
significant relationship with unity, development of the country. 12% disagreed
with the statement

TABLE 4:1:8. Effective Revenue Allocation Generates Growth, Unity,

Progress and Fosters Unity in the Country.

RESPONSES VARIABLE NO OF RESPONDENT PERCENTAGE

YES 46 82
NO 10 18
TOTAL 56 100
Source: Filed Survey 2018
In table 4:1:8, above. 82% of the respondent indicated that effective revenue
allocation generates growth, unity, progress and foster unit in the country. Only
18% of the respondents were negatively stating “No”.
TABLE 4:1:9. Poor and Inefficient Allocation of Resources is Responsible
for Low Level of Growth in Nigerian Economy.

RESPONSES VARIABLE NO OF RESPONDENT PERCENTAGE

YES 43 77
NO 13 23
TOTAL 56 100
Source: Field survey 2018

in the above table (4:1:9), 77% of the respondents agreed by staing “Yes” that
poor and inefficient allocation of resources is responsible for low level of
growth in Nigerian economy.
 41

TABLE 4:1:10. State /Local Government Strive to Develop/Grow as a

Result of Internally Generated Revenue by Supplementing what Comes
from Consolidated Revenue Fund.

RESPONSES VARIABLE NO OF RESPONDENT PERCENTAGE

Strongly 15 27
Agreed 20 36
Disagreed 13 23
Strongly disagreed 6 11
Undecided 2 3
TOTAL 56 100
Source: Field survey 2018.
In table 4:1:10 above 27% of the respondent strongly agreed other State/Local
Government strove to develop/grow as a result of internally generated revenue
to by supplementing what comes from consolidated revenue fund. 36% agreed
nominally, 23% disagreed, 11% strongly disagreed, whole 3% were undecided.

TABLE 4:1:11 With Well Utilized Revenue, Even with Learn Resources
Allocated Growth/Unity could be Achieved.

RESPONSES VARIABLE NO OF RESPONDENT PERCENTAGE

Strongly Agreed 16 29

Agreed 19 34

Disagreed 13 23

Undecided 8 14

TOTAL 56 100
Source: Field Survey 2018
 42

In the above table 29% of the respondents strongly agreed that with well
utilized revenue, growth and unity can be achieved despite poor allocation of
resources. 34% agreed nominally, 23% disagreed, while 14% were undecided.

TABLE 4:1:12 Revenue Allocation Challenges Formula Lead to Political

Instability/Disunity in the Country.

RESPONSES VARIABLE NO OF RESPONDENT PERCENTAGE

Strongly Agreed 17 30

Agreed 18 32

Disagreed 14 25

Undecided 7 13

TOTAL 56 100
Source: Field Survey 2018
In the table shown above, 30% the respondent strongly agreed that revenue
allocation challenges and formula leads to political instability/disunity in the
country. 32% agreed nominally, 25% disagreed, while 13% were decided.

TEST OF HYPOTHESIS
After giving a careful analysis of the responses to each of the
questions/statements, the hypothesis earlier formulated in chapter one will now
be tested.
The hypothesis are:
i. Ho. There is no significant relationship between revenue allocation and
unity and economic development.
Hi. There is significant relationship between revenue allocation and
economic/unity development in Nigeria.
 43

ii. Ho revenue allocation does not generate growth in the country or foster
unity/progress.
Hi. Revenue allocation generates growth in the country and fosters unity
and progress.
iii. Ho poor/inefficient revenue allocation is not responsible for the low/slow
growth rate in Nigeria economic
Hi. Poor/inefficient revenue allocation is responsible for the low/slow
growth rate in Nigeria economy
iv. State/Local Government do not strive to grow develop as a result of
internally generated revenue which supplement the consolidated revenue.
Hi. States/Local government strive to grow/develop as a result of
internally generated revenue to supplement that of consolidated revenue
account.
TABLE 4:1:12
USING TABLE 4:1:12

O E O-E (O-E)2 (O-E)2

E
17 14 3 9 64
18 14 4 16 1.14
14 14 0 0 0.00
7 14 -7 +49 3.50
56 5.28

Frequency: 56 = 14
4

Degree of freedom = (R-1) X (C+1) Where R = number of rows, C is number of

columns.
R = (R-1) (C-1) = (4 – 1) X (2-1) 2
DCF = 3.841 = 3 X 1 = 3.
X25.28. since 5.28 is greater than 3.841 we reject Ho which states that revenue
allocation has no significant relationship with development, growth and unity of
 44

the country and accept the alternative, which state that Revenue allocation has
significant relationship with growth, unity and economic growth in the country
@

TABLE 4:1:13
Using Table 4:1:8, Effective Revenue Allocation Generates Growth Unity
Progress and Faster Peace in the Country.
O E O-E (O-E)2 (O-E)2
E
16 14 2 4 0.28
19 14 5 25 1.79
13 14 -1 0 0.00
8 14 -6 36 2.57
4.64
Source: Field Survey 2018

DECISION RULE:
We reject Ho. which state that effective revenue allocation does not generate
growth and unity, since 4.64 is greater than 3.841 at 5% degree of freedom and
accept the alternative which state that effective revenue allocation generate
growth, economic, progress and unity in the country.

TABLE 4:1:14

USING TABLE 10
O E O-E (O-E)2 (O-E)2
E
25 14 11 121 11.00
20 14 6 36 2.57
13 14 -1 1 0.14
8 14 -6 36 2.57
 45

16.28
Source: Field survey 2018
Decision rule, since the calculated value 16.28 is greater than the critical value
of 3.841; we reject Ho and accept the alternative which state that state
government/local government strive to develop /grow as a result of internally
generate revenue to supplement what comes from the consolidated revenue
fund.
 46

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIOINS

5.1 Introduction:
In the preceding chapters attempts have been made to establish the
foundation of the study’s theoretical framework and the imperial study of
the work of the authors in this area of study. The appropriate
methodology had been used to obtain the data for the study and the
respondents selected as sample for the study gave their options used in
formulating the hypothesis. This work, with recommendation and
conclusion of the study.

5.2 Summary
In the course of this study, the research discovered the problems and
challenges that arise as a result of revenue allocation.
To this effect the researcher put up an objective, which sought to
establish or investigate the impact which revenue allocation has on the
unity development in Nigeria.
To this effect, a well structured questionnaire were administered to
sample respondent from the place of study. The data obtained were
analyses using a simple frequency statistical table and presented in
tabular form with adequate discussion of the result.
These were compared with the imperial study and the work of authors
experts in the field of study.
It was found out that
 Revenue allocation is a challenge and a problem to the federal
government
 It is the source of disunity and political instability in the country.
 47

 The amount allocated appears to be insufficient for the unity

development of various areas of the country and the economy.
This result in non-permanent fiscal unity.
 The states/local government are striving to survive by generating
revenue internally to supplement the ones from the federal
governments consolidated revenue fund and financial weakness.
 Insufficient funds has caused low pace of development, where as
the inadequate supply of funds has caused some areas to envy
others, which give rise to aviaries jealousy and disunity.

CONCLUSION
The researcher concludes the study as follows:
 Resources allocation to state and local government is not sufficient.
 The formula use appears inadequate and unacceptable because the local
government which needs much of development is not getting a
good/attractive percentage.
 The different sectors of the economy are not properly taken care of
education
 Health and social amenities
 The allocation instead of bring peace, unity and progress is causing
political instability, disunity and uneven/poor development.
 There is a need to review the whole system as for as revenue allocation is
concern.
 True federation is to be seen in practice as the people are yearning for
resources control and management, whole others to not want it.
 There is disunity as these are agitation for political power at the expenses
of promotion of peace, unity and development
 48

5.3 RECOMMENDATION
The federal government should develop a more
accurate/considerate revenue allocation formula that will take care of the
financial problems of the state.
 It should develop and approve more powers to the state/local government
and bring its present to the grass root.
 The researcher recommends that for there to be a good governance,
autonomy should be granted to the local government, and sufficient funds
should be given to them as there are totally poorly developed.
 The research recommend that the derivation population, land mass etc,
used as criteria for allocation of resources should be reviewed because of
certain issues of pollution, disruption of result of oil prospecting, drilling
and smoke from one environment.
 Since we cannot afford the status Quo, where federal government
continues to hold much power over resources, we need to return to the
practice of true federation.
 Commission should be set up to monitor utilization of revenue allocated
to states and local government.

REFERENCES
Aboyada, Technology committee (1977), Report of the Revenue Allocation
Committee Cited in G. D. Olowuoni (2000)
Ademolakun, L: (2002) Public administration in Nigeria, main issues:
Spectrum Books. Ibandan
Anyanwu (1995). Revenue Allocated in Nigeria and Fiscal Federalism in Nigeria
Journal or Economics Management Vol. No.2.
Banear PT. (1999) Nigerian economic policy and development Jevic
Publishers . Ilorin
 49

Eleasu, (2001) Federalism and Resources Control. Overcomes book Publishers

Umuiahia.
Ezeani (2004) Revenue Generation/Allocation. A Big challenges big skill
Publisher. Lagos.
Iseti, K, Topical issues on Public Finance, Kingdom Publishers, Benin Otuwale
G. D. (2000). An Evaluation of Revenue Allocation Formula in Nigeria.
Ibok Er (2010) Revenue Allocation- Nigerian Problems/Prospects.
Best Press Print Lagos
Osula – 2003; Revenue generation and allocation Princess Press.
Zenith Press/Publisher Lagos.
Shauib (2003) . “Politics of revenue Formula”
Taiwo I. O. (1993): Fiscal Federation “A Theoretical framework” Tedi
Publishers ltd. Abeokuta
Michael (1993). Fiscal Federalism Allocation Formula and Economic
Development in Nigeria
Nwosu H. N. (200) Political authority/autonomy, Forth Foundation
Scot Anthony (1964). The Economic Goal of Federal Finance, Journal and
Public Finance vol.19 No.4
Tijani/Godwin (2002). Public Finance and Resource Control. Pathfinder
Publishers. Lokoja.
Watt L: 2004 “Fiscal Federalism” Nigeria’s Post Independence Tamson Ltd
Ilesha
Ekpo H. H “1994” Local Government Fiscal Operations in Oil Export
Economy. Africa Journal
 50

APPENDIX I
DISTRIBUTION OF QUESTIONNAIRE FOR RESEARCH STUDY

Department of Public Administration

Heritage Polytechnic
Ikot Udota,
Eket.

June 4, 2018.

The Permanent Secretary

Ministry of Finance,
Idongesit Nkanga Avenue,
Ibb way, Uyo.

Sir,
QUESTIONNAIRE ADMINISTRATION

I am a final year student of Heritage Polytechnic, part time centre Uyo. I

am handling a research on the topic Revenue Allocation and Nigeria’s unity and
Development – An Appraisal of Akwa Ibom State.

I seek your permission to gain entry into your ministry to distribute

questionnaire to obtain information/answers for the above study.

The information receive will be used confidentially and for the purpose of
this study.

Kindly oblige, Thanks for your Consideration.

Yours faithfully,
EDEM FAVOUR, IME
 51

Researcher
RESEARCH QUESTIIONNAIRE
INSTRUCTION: Kindly tick ( ) or fill in the box appropriately to your
response to each question

SECTIION A
1. SEX: MALE FEMALE
2. Staff and qualification
a) ASCA, ACA
b) B.Sc
c) B.Ed
d) HND/OND
e) SSCE (others) specify
………………………………………………………
3. Years of experience.
SECTION B
4. Does the problem of revenue allocation cause by lack of awareness.
a) Yes
b) No
5. Does revenue allocation issues contribute to political instability in
Nigeria?
a) Yes
b) No
6. How does state and local government with high revenue allocation from
the federation account show better signs of economic development?
a) In terms of provision of basic amenities such as construction and
maintenance or roads, creation of employment opportunities.
b) In terms of sharing among the staff
c) In terms of embezzlement
 52

7. does interest in sharing of revenue from federation account influences

demand
a) Yes
b) No
8. To discharge the consumption of wanted goods and service that are
socially harmful is the purpose of revenue allocation.
a) Yes
b) No
9. Is revenue allocation challenge the only issue that led to political
instability in Nigerian
a) Yes
b) No
10. What factors do you think led to the challenges of revenue allocation in
Nigeria?
a) Economic and political instability
b) Unstable constitutional framework
c) Financial weakness
d) All of the above
11. Is there any relationship between revenue allocation formula and the
source of revenue/Unity development?
a) High
b) Average
c) Marginal
d) Low
12. Does revenue allocation impact on people’s life?
a) Yes
b) No
13. Revenue allocation is the sharing of revenue and other resources
generated in the country among the federal state and local government.
 53

a) True
b) False
14. What are likely negative effects of revenue allocation in the country?
Please specify ………………………………………………………
15. What are problems encountered by the state and local government in
Nigeria?
a) The problems of delay in payment staff salaries
b) Inadequate funds
c) All of the above