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

During the post-independence restructuring of Nigeria's fiscal federalism, which revenue allocation body was the first to recommend a direct statutory share of the Federation Account for local government councils as a distinct tier of governance?

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

Answer

The Okigbo Presidential Commission of 1980 was the first fiscal body to recommend a direct statutory allocation of the Federation Account to local government councils.
The Okigbo Presidential Commission of 1980 was established following the adoption of the 1979 Executive Presidential Constitution. It was the first commission to incorporate local government councils directly into the national revenue distribution formula by assigning them a statutory 10% share of the Federation Account.

Step-by-Step Solution

1
Identify the historical context of local government recognition in Nigerian fiscal federalism
The 1976 Local Government Reforms and the 1979 Constitution formally established local governments as a distinct third tier of government in Nigeria.
Prior to 1979, fiscal revenue allocation only formally recognized the central government and regional/state governments.
2
Evaluate the recommendations of post-1979 revenue allocation commissions
The Pius Okigbo Commission (1980) was appointed under President Shehu Shagari to devise a formula reflecting the new three-tier constitutional structure.
The commission explicitly recommended allocating 10% of the Federation Account directly to local government councils.

Key Concept

Tri-tier fiscal federalism and statutory local government revenue allocation in Nigeria
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Revenue Allocation System and Principles in Post-Independence Nigeria

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