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

During the Military era under General Yakubu Gowon, the Dina Interim Revenue Allocation Committee (1968) proposed a radical departure from the prevailing fiscal federalism model. Which of the following key recommendations distinguished the Dina Committee's report, even though it was largely rejected by state military governors?

  1. The establishment of a Special Joint Account and a permanent planning commission to prioritize national minimum standards and balanced regional developmentAnswer
  2. B
    The complete constitutional delegation of mineral royalty collection exclusively to local government councils
  3. C
    The statutory allocation of fifty percent of all federally collected revenue strictly on the basis of derivation
  4. D
    The abolition of the Distributable Pool Account in favor of direct state taxation of central maritime ports

Answer

The Dina Committee of 1968 uniquely recommended establishing a Special Joint Account alongside a permanent planning commission to emphasize national minimum standards, balanced development, and reduced reliance on derivation.
The correct answer accurately captures the central proposal of the 1968 Dina Committee, which advocated for a Special Joint Account, a Permanent Revenue Planning Commission, and fiscal criteria centered on national minimum standards rather than regional derivation.

Step-by-Step Solution

1
Analyze the historical context of the Dina Interim Revenue Allocation Committee established in 1968.
The committee operated under military rule following the creation of 12 states in 1967.
Understanding the political backdrop helps identify the committee's central goal of fiscal centralization and national unity.
2
Identify the primary fiscal innovations proposed by the Dina Committee.
The committee recommended replacing regional financial dominance with centrally managed funds, introducing the Special Joint Account and focusing on national minimum standards.
This proposal sought to redistribute wealth to less developed states and foster national integration.
3
Evaluate why state military governors rejected the report.
State leaders viewed the recommendations as overly centralizing and an infringement on state financial autonomy.
This highlights why the recommendation remained influential theoretically despite lacking full executive implementation.

Key Concept

Dina Interim Revenue Allocation Committee (1968) and Fiscal Centralization in Nigeria
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Revenue Allocation System and Principles in Post-Independence Nigeria

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