What is the current revenue sharing in Nigeria?
What is the current revenue sharing in Nigeria?
Under the current revenue sharing formula, the federal government takes about 52.68 per cent, the 36 state governments and the Federal Capital Territory get 26.72 per cent and the 774 local governments share 20.60 per cent.
How is Nigeria allocation shared?
Under the sharing formula, the federal government allocates to itself 52.68 percent of the federal revenue, while a state gets 26.68 percent. The 774 local governments are left with 20.50 percent, while the oil producing states get 13 percent as derivation fund.
How does the federal government share revenue?
About 50 percent of federal revenue comes from individual income taxes, 7 percent from corporate income taxes, and another 36 percent from payroll taxes that fund social insurance programs (figure 1). The rest comes from a mix of sources.
How much revenue is shared from the federal government to the states?
Federal Budget Federal receipts were 64 percent of the total, while state and local receipts (excluding intergovernmental transfers) were 21 percent and 15 percent, respectively.
What are the problems of revenue generation in Nigeria?
One of the major problems facing effective discharge of function in Local Government in Nigeria is challenges of Revenue Allocation which arises due to corruption, undue interference from either state or federal government, use of State Joint Local Government Account and Poor Budgeting and Accounting System.
Which state earns most in Nigeria?
List of Nigerian states by GDP
| Rank | State | GDP (in millions of USD) |
|---|---|---|
| 1 | Lagos State | US$33,679 |
| 2 | Rivers State | US$21,073 |
| 3 | Delta State | US$16,749 |
| 4 | Oyo State | US$16,121 |
What is the sharing percentage of Nigeria revenue allocation?
52.68 percent
Under the current revenue sharing formula, the FG takes 52.68 percent, the states 26.72% and the local governments, 20.60% with 13% derivation revenue going to the oil producing states.
Is revenue sharing good or bad?
Revenue sharing can be a very good opportunity for writers. But it can also be a very bad opportunity. Several other companies I have reviewed also have revenue sharing of one form or another but Yahoo Voices is the best of them all for one main reason: The revenue sharing is for life.
Why is revenue sharing bad?
One of the problems with revenue sharing is that you can’t earn a consistent, predictable income. This is because you won’t know whether or not there will be a profit from week to week, month to month or for the year, until after the fact. Even if you know your business will be profitable, you won’t know by how much.
Why is revenue so important?
Why is revenue important? Revenue is what keeps your business alive. Beyond being a lifeline, revenue can give you key insights into your business. If you want to increase your business profits, you need to increase your revenue.
What are the sources of revenue for local government in Nigeria?
Source of local government revenue in Nigeria
- Grants from the federal and state government in Nigeria.
- Special levies.
- Statutory allocation.
- Income from commercial ventures.
- Income from investments.
- Loan from the bank.
- Property and tenant rates.
- Court fines.
Who is in charge of revenue allocation in Nigeria?
The committee in charge of allocating funds from the Federation Account to the three tiers of government. The Revenue Mobilization Allocation and Fiscal Commission is a corporate body that occupies a very strategic position in the fiscal administration of the Nigerian government.
What is the vertical and horizontal allocation formula in Nigeria?
Thus, it can conveniently be concluded that the vertical allocation formula is for inter-tier sharing between the three tiers of government while the horizontal allocation formula is for intra tier sharing among the 36 States and the 774 Local Governments in Nigeria
Which is the correct formula for government revenue allocation?
1. Vertical Allocation Formula (VAF) 2. Horizontal Allocation Formula (HAF) This formula shows the percentage allocated to the three tiers of government i.e. federal, states and local governments.
How is the VAF formula applied in Nigeria?
This formula is applied vertically to the total volume of disburseable revenue in the Federation Account at a particular point in time. The VAF allows every tier of government to know what is due to it; the Federal Government on one hand and the 36 States and the FCT and 774 Local Governments on the other.
