THE NORTH AND POLITICAL ECONOMY OF NIGERIA REVENUE ALLOCATION IN NIGERIA

Abstract

The current controversy between Northern Governors and their Southern Counterparts, over how oil revenues accruing to the Nigerians should be shared has created a deep gulf in the ranks of the governors. In the last few days, the governors have been polarized under ethnic and regional lines over who gets what from the Federation Account. Political and opinion leaders across the polity have also joined the fray politicians in the nineteen (19) northern states want the fund to be abolished or its percentage significantly reduced because its sustenance not only puts the north at a is advantaged but also poses danger for the part of the country where literacy, poverty, ignorance and general backwardness are on the rise. The oil producing states, on the other
hand are determined to fight back to protect their right and push for a progressive increase in the derivation formula up to fight (50) percent to cushion the impacts of years of marginalization and environmental degradation by the oil companies in the region political watchers fear that the oil producing states could revive the age long agitation for total resource cont control or demand a review of the current derivation formula from the current 13 percent to 50 percent. All seem not lost for the North. The region may begin to enjoy a special derivation from solid minerals based on ongoing arrangement by the Revenue Mobilization and Fiscal Allocation Commission (RMFC). Despite the criticisms there are indications, that the north was ready to go the whole hog as the region recently set up the ten (10) Committees to harmonise its interest. The paper concludes by positing that the Northern agitation is rather, a product of deep seated envy and parochial interest.