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

Which post-independence revenue allocation body in Nigeria first recommended a statutory percentage share of the Federation Account specifically for Local Government Councils as a distinct third tier of the federation?

  1. The Okigbo Presidential Commission (1980)Answer
  2. B
    The Dina Interim Revenue Allocation Committee (1968)
  3. C
    The Aboyade Technical Committee (1977)
  4. D
    The Raisman Fiscal Commission (1958)

Answer

The Okigbo Presidential Commission (1980)
The Okigbo Presidential Commission on Revenue Allocation (1980) was set up after the adoption of the 1979 Constitution. It made history by recommending a statutory percentage share of the Federation Account directly for Local Government Councils, thereby consolidating their status as the third tier of government in Nigerian fiscal federalism.

Step-by-Step Solution

1
Examine the evolution of local government funding in post-independence Nigeria.
Following the 1976 Local Government Reforms and the 1979 Constitution, local government councils were recognized as an autonomous third tier of government requiring guaranteed statutory funding.
Understanding the constitutional transition to a three-tier federal system is key to identifying when local councils were integrated into the national revenue formula.
2
Identify which commission formally integrated local governments into the Federation Account allocation formula.
The Okigbo Presidential Commission appointed in 1979 under the Second Republic explicitly recommended allocating a direct percentage of the Federation Account to Local Government Councils.
This recommendation legally established direct revenue sharing for local governments alongside federal and state governments.

Key Concept

Okigbo Commission and Three-Tier Fiscal Federalism
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Revenue Allocation System and Principles in Post-Independence Nigeria

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