Besides, in farming communities, local government areas could establish cassava, yam, cocoa yam, potato, banana farms including plantain plantations. There are many ways to accomplish this, one way is to use a comparison formula that determines if the CurPer period is equal to the StartDate period. The sharing of proceeds from natural endowment, though not from exploration by host communities, has weakened development of other natural resources by the citizenry, as the desire is to partake in the national cake. If we put all of this into a formula, and then fill the formula down and to the right, the result of the number of days computed for each column in the allocation table follows. The Government decides to split these revenues and give to the lower level of governments.
Nigeria is governed by a federal system hence its fiscal operations also adhere to the same principle, a fact which has serious implications on how the tax system is managed. Going by this, many states will collapse as we all know that some states contribute very little to the Federation Account; and many of our states and local governments are not ready to generate revenue internally. That proposed revenue formula remained with National Assembly for almost eight months before the Supreme Court Verdict of April 2002 on Resources Control nullified the Special Fund in the existing formula, which invariably affected the fate of the pending formula with legislators. We work really hard and put a lot of effort and resources into our content, providing our readers with plagiarism-free articles, original and high-quality texts. The proposed formula is a departure from the previous two formulas which heavily relied on population size to allocate funds to county governments. Notable reports were received from Raisman Commission 1958, Aboyade Technical Committee 1977, Okigbo Panel1979 and National Revenue Mobilisation Allocation and Fiscal Commission 1992.
This could be concretely derived in Nigerian instance where the Members of the House of Representatives seek fresh jumbo pay following the endorsement of the Minimum Wage Act for the national civil servants. Of course, Ogun State Government could not have achieved such a financial milestone within a space of five years if its helmsman had not been frugal. But one serious question that needs to be asked is whether this tasking and consuming exercise can be tempered with or altered without recourse to its technical formulator? Every kobo, whether from Abuja or generated within the state, is spent for the purpose it is meant. How do you get this formula to start and stop at a specific end date? In the 70s then, there was derivation principle that stipulated fifty percent 50% derivation. Elias Mbam By: Jimoh Abubakar The ongoing agitation for the review of revenue allocation formula has brought to the fore questions on the tangible benefits derived by the people at both State and Local Government levels from the huge monthly revenue allocation to their respective States from the Federation Account.
Since we only want the number of days within the current monthly column, we need to subtract the number of days prior to the current period. Administrative overhead includes those costs not involved in the development or production of goods or services, such as the costs of front office administration and sales; this is essentially all overhead that is not included in manufacturing overhead. The committee was mandated to work on the Bill and return it to the parliament Wednesday, listed for consideration on Thursday and eventually passed. Because of the current revenue allocation formula in Nigeria, though there is a great deal of wealth in the country from the oil industry, 64%… 6621 Words 27 Pages change in the economic environment in which it operates, hence the need to review the regulating instruments from time to time. This article originally appeared in Comet Nov15, This day Nov17, New Nigeria Nov18, Daily Times Nov18, Nigerian Tribune Nov19, Sun Nov20, Financial Standard Dec15, 2003 Yushau A. The failure in security intelligence can be traced to inadequate training of security operatives.
Just not sure of the best way to show it? There are several systems of government currently being practiced all over the world. Still, the problems with revenue allocation remain the same. Till now, there is agitation for yet an acceptable derivative principle that will meet the yearning of the Nigerian citizens. The motion was passed with voice vote. The Federal Government gives the best pieces of pie to the states in need. This debate has its foundations in the history and evolution of the Nigerian federation.
However, the dwindling development in the Niger Delta has been widely viewed as a sheer greed and insincerity on the part of federal government. Consequently, the citizens and companies have taken regular payment of tax as an obligation. Thus, we subtract from it the number of days in the current period that are in excess of the EndDate, represented above by Segment F. What we described under devolution of powers, the sharing of revenue from the federation account to a very large extent has been bedevilled because our states and local governments have become very lazy to look for other sources of revenue. .
The Walk-through Rather than just post up the formula, I thought it would be helpful to build the formula together, piece by piece, so that if you decide to use it in your workbooks you will be able to adapt it and maintain it over time. Revenue allocation refers to the practice whereby one level of government turns over a portion of the revenue it generates from taxation and other sources to another government level which is usually a lower level of government. He pointed out that it is a crazy idea the attempts to make distinction between Federation from Federal Government. Most of the states recorded low budget performance owing to inadequate implementation, lack of focus, mismanagement of funds, improper planning and unnecessary diversion of resources. Godswill Akpabio, Senate Minority Leader, noted that the Federal Government has failed in its responsibility of protecting the lives of its citizens, lamenting that Bakassi indigenes are killed almost on daily basis in their natural habitat. Such principle may result to another era of socio-economic inequality.
So happy to be making progress at last! In many businesses, the amount of overhead to be allocated is substantially greater than the direct , so the overhead allocation method can be of some importance. It means that the state that provided the most funds will receive the most funds back. However, at this level, Nigerians need to look beyond the immediate benefit such increments may serve and think of the futuristic consequences such as amplifying level of inflation, industrial unrest among others economic problems. The states with the biggest amount of resources — get the biggest funds. The formula, which existed for almost ten years, gave Federal Government 48.