LIST OF REASONS

INTRO : Statutory federal allocations to state government coffers in Nigeria are set to rise by 69 percent to N5.54 trillion in 2024, according report by The PUNCH . The 2024 approved budget indicates that states will receive N2.24 trillion more than the N3.3 trillion disbursed in 2023. The revenue distributed during the Federation Account Allocation Committee (FAAC) meetings to federal, state, and local governments primarily comes from oil exports, taxes, and other statutory allocations.  Revenue allocation generally refers to the distribution of centrally collected funds among different levels of government and within each level for economic purposes. According to Olowononi (2000), as cited in Dang (2013), revenue allocation involves not only the allocation of tax powers but also the arrangements for sharing revenue among the three tiers of government and among the state governments themselves. In Nigeria, revenue allocation is categorized into two types: vertical allocation and ...