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

In post-independence Nigeria, which revenue allocation principle distributes an identical share of funds to every state regardless of its population size, land mass, or resource output?

  1. A
    Derivation principle
  2. Equality of statesAnswer
  3. C
    Absorptive capacity
  4. D
    Population criterion

Answer

The Equality of States principle distributes revenue in equal shares among all component states.
The principle of equality of states dictates that federally collected revenue is shared equally among all states as constituent units of the federation, ensuring each state gets an identical base amount regardless of population, land mass, or internal revenue generation.

Step-by-Step Solution

1
Identify the defining feature of the revenue allocation principle described in the prompt.
The prompt specifies an allocation method where every state receives the exact same proportion of revenue regardless of size, population, or resource contribution.
Understanding the core definition of fiscal allocation criteria in Nigerian federalism is necessary to select the correct principle.
2
Match the specified feature with the standard post-independence Nigerian revenue allocation criteria.
The 'Equality of states' principle guarantees equal horizontal allocation across all constituent units to promote balanced federal development.
It acts as an equalizer among states with varying geographical and demographic sizes.

Key Concept

Principles of Revenue Allocation in Nigeria
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Revenue Allocation System and Principles in Post-Independence Nigeria

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