The impact of resource control and true federalism on Nigeria’s socio-economic development

Abstract

Problems of designing an acceptable revenue sharing formula among tiers of government remain a perennial obstacle plaguing the Nigerian federation. These affected the ethnic minority groups who are crying for resource allocation, sharing formula and development of the area, being the highest rich oil/gas producers, the Niger Delta people. The metamorphosis of Nigerian federal political economy between 1960 - 1966 from 3 regions and a central governmental independence in 1960, the administrative structure's progress became complex. First, with 12 states and 299 Local Governments, then 19 states and 781 Local Governments, and finally 36 states and 776 Local Governments, plus federal capital - Abuja. Many revenue allocation commissions were set-up, to recommend an acceptable formula, but the government failed in various attempts. This has generated development and peace problems in the region. This write-up emphasizes on the genesis of revenue allocation formula, prospects and recommendations to government, Multinational Corporation and controlled measures by the agitating parties in the region.