LIST OF REASONS

INTRO:   The sharing of revenue among the three tiers of government in Nigeria has been a contested issue due to the political nature of the exercise. Several attempts made by various administrations to create an acceptable and all-embracing revenue allocation formula for the country are yet to achieve the target result.  We discussed the basics of revenue allocation in Nigeria under the subheadings below. Revenue Allocation Formula in Nigeria: Definition, Formula, History and Types  Meaning: Generally, revenue allocation means  how centrally collected money is shared among different levels of government and within each level for economic purposes. According to Olowononi (2000) quoted in Dang (2013) , revenue allocation is the allocation of tax powers and the revenue sharing arrangements not only among the three levels of government but among the state governments as well. In Nigeria, there are two types: vertical allocation, which involves distributing funds am...