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Difficulty: MediumRevenue Allocation System and Principles in Post-Independence Nigeria

The Aboyade Technical Committee on Revenue Allocation (1977) departed from traditional fiscal criteria by introducing which of the following novel principles into Nigeria's revenue sharing formula?

  1. Absorptive capacity and independent revenue effortAnswer
  2. B
    Derivation and population size
  3. C
    Continuity of state services and land mass
  4. D
    National interest and population density

Answer

The Aboyade Technical Committee of 1977 recommended fiscal efficiency and development-oriented criteria, specifically absorptive capacity, independent revenue effort, national minimum standards, and equality of access to development opportunities.
The 1977 Aboyade Technical Committee broke away from traditional political criteria like derivation and population by introducing technical fiscal criteria, namely absorptive capacity, independent revenue effort, national minimum standards, equality of access to development opportunities, and fiscal efficiency.

Step-by-Step Solution

1
Identify the historical context of the Aboyade Technical Committee (1977)
The committee was set up under General Olusegun Obasanjo's military administration to formulate a highly technical and rational formula for revenue allocation.
Understanding the committee's mandate helps distinguish its technical criteria from earlier political commissions.
2
Evaluate the key principles recommended by the Aboyade Committee
The committee proposed five principles: Equality of Access to Development Opportunities (25%), National Minimum Standards (22%), Absorptive Capacity (20%), Independent Revenue Effort (18%), and Fiscal Efficiency (15%).
Absorptive capacity and independent revenue effort directly reflect the novel technical approach of the 1977 committee.

Key Concept

Aboyade Revenue Allocation Principles
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Revenue Allocation System and Principles in Post-Independence Nigeria

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