How nigerias governments share the money #comments

A very important and timely question!

In Nigeria, the government's revenue is shared among three tiers of government: the Federal Government, State Governments, and Local Governments. The sharing formula is outlined in the Nigerian Constitution and the Fiscal Responsibility Act. Here's a breakdown of how the money is shared:

Federal Government (FG): The FG receives the largest share of the revenue, which is approximately 52.68% of the total revenue. This includes:

  1. Oil revenue: The FG receives the majority of the revenue from oil sales, which is used to fund its activities, including infrastructure development, defense, and social services.
  2. Non-oil revenue: The FG also receives revenue from non-oil sources, such as taxes, customs duties, and other fees.

State Governments (SGs): The SGs receive approximately 26.72% of the total revenue. This includes:

  1. Allocation from the Federation Account: The FG allocates a portion of its revenue to the SGs, which is based on the population and land area of each state.
  2. Internal revenue: SGs also generate revenue from their own sources, such as taxes, tolls, and other fees.

Local Governments (LGs): The LGs receive approximately 20.6% of the total revenue. This includes:

  1. Allocation from the Federation Account: The FG allocates a portion of its revenue to the LGs, which is based on the population and land area of each local government area.
  2. Internal revenue: LGs also generate revenue from their own sources, such as taxes, fees, and other local sources.

Other allocations:

  1. Judiciary and Legislature: A small portion of the revenue is allocated to the Judiciary and Legislature to fund their activities.
  2. Debt servicing: A significant portion of the revenue is used to service the country's debt, including domestic and foreign debt.

Challenges and controversies:

  1. Revenue allocation formula: The revenue allocation formula has been a subject of controversy, with some arguing that it is unfair and does not reflect the true needs of each tier of government.
  2. Corruption: Corruption is a significant challenge in Nigeria, and it is often alleged that a significant portion of the revenue is diverted or mismanaged.
  3. Inefficient use of resources: There are concerns that the revenue is not being used efficiently, with some arguing that more should be spent on critical infrastructure and social services.

Overall, the revenue sharing formula in Nigeria is complex and has been a subject of controversy over the years. Efforts are being made to reform the system and ensure that the revenue is used more efficiently and effectively.