The Intersection between Revenue Allocation and Economic Drive and Development in Nigeria since 1999

Abstract:

Nigeria, a country abundant in natural resources located in West Africa, has encountered significant obstacles in effectively generating, managing, and utilizing revenue to foster sustainable economic growth and development, since the termination of military rule in 1999. This study delves into the impact of revenue allocation on Nigeria’s economic progress following the restoration of democratic governance in 1999. It scrutinizes the various revenue allocation mechanisms implemented before and during this period and evaluates their efficacy in advancing economic development in Nigeria. Against this backdrop, critical economic indicators such as Gross Domestic Product (GDP) growth, poverty rates, employment levels, and infrastructure development were scrutinized to ascertain whether the revenue allocation system adopted during Nigeria’s uninterrupted democratic rule has enhanced the country’s economic advancement. The historical research methodology was adopted, which involved the collection, analysis and corroboration of primary and secondary research data. The study finds out that despite the clear aspiration for economic development, sustainable development has not been achieved. This disappointing outcome is a result of poor planning, misallocation of resources, lack of people-oriented policies, transparency/accountability, political will, the prevalence of corruption, over-reliance on petroleum resources, and over-concentration of power at the center. These factors have undermined initiatives and innovations at the component units, leading to an increase in poverty levels, unemployment, and social inequalities. To address these issues, the paper recommends decongesting power from the center to promote competition and increase in revenue generation at the component units. Additionally, the enactment and implementation of policies that put Nigerians first, needs to be prioritized.