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

Which of the following principles was introduced by the Dina Interim Revenue Allocation Committee of 1968 to reduce reliance on derivation and promote national cohesion in post-independence Nigeria?

  1. Balanced development and national interestAnswer
  2. B
    Absolute derivation based on regional natural resource output
  3. C
    Independent internal revenue generation effort
  4. D
    Equality of local government councils as primary administrative units

Answer

Balanced development and national interest
The Dina Interim Revenue Allocation Committee of 1968 recommended shifting revenue distribution away from regional derivation toward national interest, basic needs, and balanced regional development to promote national integration during the Civil War era.

Step-by-Step Solution

1
Identify the historical context and mandate of the Dina Committee of 1968.
The Dina Committee was set up by the Federal Military Government during the Nigerian Civil War to review fiscal federalism.
The military administration aimed to reduce fiscal imbalances and regional competition caused by heavy reliance on the derivation principle.
2
Analyze the specific revenue allocation principles recommended by the committee.
The committee proposed creating a Special Joint Account and allocating funds based on national interest, balanced development, and minimum national standards.
These principles shifted funds from resource-producing regions to a centralized pool for equitable distribution across the federation.

Key Concept

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

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