STATUTORY REVENUE ALLOCATION FORMULA

In realization of the importance attached to the principles of derivation and devaluation of power between the three-tier of government…. our administration amended the 1982 Act in 1992, giving prominence to the principles of derivation (resource control). Thus, the local government share of the Federation Account rose from 10% to 20%, while derivation moved upwards from 1.5% in 1982 to 3% in 1992. The table below shows the revision between the 1982 and 1992 Acts.

  Beneficiary 1982

ACT

1992

ACT

1. Federal Government 55.0% 48.5%
2. State Governments 32.0% 24.0%
3. Local Governments 10.0% 20.0%
4. Special Funds

 

  7.5%
  (i)   Funds for amelioration of ecological problems 1.0% 2.0$
  (ii)   Funds for the development of mineral 

producing areas

1.5% 3.0%
  (iii)  Devaluation   1.0%
  (iv)  Federal Capital Territory   1.0%
  (v)   Stabilization Funds   0.5%
       

The formula for distribution was also revised appropriately.