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

Prior to the establishment of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) as a permanent body, how were revenue allocation formulas in post-independence Nigeria primarily formulated and revised?

  1. Through ad-hoc presidential and technical commissions set up periodically to recommend revenue sharing formulasAnswer
  2. B
    Through annual statutory legislation passed directly by the National Assembly without executive advisory bodies
  3. C
    Through direct executive proclamations issued unilaterally by state governors acting under a confederal treaty
  4. D
    Through binding military decrees formulated exclusively by local government councils

Answer

Prior to the creation of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), revenue allocation formulas were formulated through ad-hoc presidential and technical commissions appointed periodically.
In Nigeria's fiscal history prior to the establishment of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) under Decree No. 49 of 1989 and the 1999 Constitution, revenue allocation formulas were reviewed intermittently by ad-hoc technical committees and presidential commissions (such as Binns, Dina, Aboyade, and Okigbo). These bodies submitted reports that formed the basis for executive policies and statutory allocations.

Step-by-Step Solution

1
Analyze the historical evolution of revenue allocation mechanisms in post-independence Nigeria.
Identify that early revenue sharing relied on ad-hoc panels such as the Binns Commission (1964), Dina Committee (1968), Aboyade Technical Committee (1977), and Okigbo Commission (1980).
Understanding the ad-hoc nature of early fiscal commissions provides the institutional context for how principles like derivation, need, and equality of states were reviewed.
2
Contrast ad-hoc commissions with the permanent institutional setup established later.
Recognize that the RMAFC was created to replace ad-hoc commissions with a permanent constitutional body responsible for continuous monitoring and revenue allocation reviews.
This establishes why periodic ad-hoc commissions represent the accurate historical mechanism prior to the establishment of the RMAFC.

Key Concept

Ad-hoc Commissions vs Permanent Fiscal Bodies in Nigerian Revenue Allocation
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Revenue Allocation System and Principles in Post-Independence Nigeria

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