Proposal on the importance of Equitable Allocation of
Revenue Resources in Nigeria.
Equitable Allocation of Revenue are
allocation given to air economy to reduce inequalities among them, as regard to
the financial resources available in the country.
The factors that should be considered
to ensure rational allocation of revenue are population, size, wealth and level
of development. The allocation of revenue based on these factors above will
help the economy to attain economic growth and development, which is the most
important thing in any successful economy. The need for allocation of revenue
arises because of such inequalities.
When
revenue resources are equitably distributed to various sectors of economy,
there are benefits that could be achieved:
Enhancement
of standard of living:
If the revenue resources are equitably
allocated in a given economy, the standard of living in such area will
increase.
Development:
Since economic growth and development depend on the available resources, the
more resources are fairly allocated in the economy, the more the level of
development. The resources could be used
in the provision of good roads, health care delivery services, electricity etc.
Employment
opportunities: Employment are created to the masses when allocation of
resources are used in the provision of infrastrural facilities.
Poverty alleviation: This is a
mean by which poverty are eliminated in a given country. It is done by any sector of economy. This could be made possible if proper
allocation is made to the sector.
The sources of Revenue in Nigeria
are:
Taxation:
This is a compulsory levy paid by individual to government from their earnings.
Agriculture: this is the major sources of revenue to the
government before the invention of petroleum production on the economy.
Rent: Here, the state and federal government
generate a huge sum of money from the use of its poverty by masses.
Specific charges: These are fees
charged by the government in attempt to forgive an offence committed. There are also other fee charged by the
government such as vehicle license fees, market fees etc.
CHAPTER ONE
INTRODUCTION
Revenue
allocation in a federal community like Nigeria, may be describe as an attempt
by the central government to reduce the
inequalities among its different units, as regard to the financial resources available in the country.
Within the economy, there are several
possible inequalities such as population, size, wealth, level of development
etc. All these factors should be put into consideration to ensure rational
allocation of revenue resources not only to various unit of the economy but also to the various sectors of
the economy which will definitely lead the economy to the attainment of economic
growth and development which are the most indispensable elements that should be
attained in any successful economy. The need for revenue allocation arises mainly because of such
inequalities on the financial resources available to the relatively rein
units of government as well as the relatively poor units. In Nigeria, some states are far better
than some other states in terms of
development therefore, in allocating revenue resources, the authority
should put in place certain persuasions
which will lead to equitable allocation of fund and avoidance of the
ideas of maginalization in the country
at large. Development is one of the factors that compels people in some
communities to lay false statement of being marginalized by the government. Nigeria
is a democratic state that is made up multi- ethnic groups which requires a
tolerable measure in revenue resources allocation to every state of community
in Nigeria.
1.1 OBJECTIVE/
PURPOSE OF THE STUDY
In Nigeria,
revenue allocation has been a controversial issue for many years. As a result of this prevailing issue, the
writer comes up with this study in order to recommend some favourable solutions
which be adopted in allocating revenue
resources to the various sectors of the
economy.
However, it further recommends certain
machineries for proper implementation of the suggested solutions. These machineries
could be corporate bodies of individuals who are capable of carrying the task
to the grass root so as to enable the aim of the study to be accomplished.
Another objective of this study is to
establish certain ethics that will guide the conduct of equitable allocation of
revenue resources in Nigeria,
together with recommending a proper procedure which should be followed whenever
the codes of the revenue allocation is violated.
This study is also meant to suggest
the particular time and how resources should be allocated in a given financial
year. The time the allocation should be
made that is, beginning, middle or at the end of the year couple with the
periodic intervals which could be six months, one year etc. This will enhance the well being of the
nation.
1.2 SIGNIFICANCE OF THE STUDY
There
are a number of benefits, which could be attained if revenue are equitably
allocated to various sectors of the economy.
The significance is going to be limited to the under listed points thus:
1.
Enhancement of standard of living: In an economy where
revenue resources are equitably allocated to all sectors of the economy, the
standard of living in such community will increase in proportion to the
allocation of the resources.
2.
Development:
Economic growth and development rely on available resources in a given
economy. Therefore, the more allocation of resources goes to some of the
important sector of economy such as provision of good roads, health care
delivery services, electricity etc, the more the economy transfers from one
level of development to the other.
3.
Employment opportunities: When allocation of resources
are made to the provision of infrastructural facilities, employment are created
to the masses as well as refraining them from being urbanized.
4.
Technological Advancement: The level of development in
any nation depends on the technological advancement of the nation. If proper allocation of resources goes to the
educational sector, many people will be encouraged to seek for technology,
which will gradually lead into development in the community.
5.
Poverty alleviation: This is another sector of the
economy which the democracy government
in federal republic of Nigeria has shown concern about the strategy to avert
the ideas of poverty in Nigeria. This could only be possible if proper
allocation of resources is made to the sector.
6.
Discouragement of Secession of States: This is one of
the disputes the equitable allocation of revenue resources in Nigeria has an answer to. Recently, the Igbo communities in the federal
republic of Nigeria attended to ssecesed because of
inequitable allocation of resources. The ideas of secession will stop to exist
and the objective of the Nigerian economy will be accomplished.
1.3 SCOPE
OF THE STUDY
The study
focuses on revenue resources in Nigeria.
This
sources of revenue generated in Nigeria
and equitable allocation of the revenue
generated to the various sectors of the economy.
It is obvious that Nigeria is naturally endowed in
some parts of the country. As regard to
the fact that these natural resources
are not equitably distributed by nature,
these becomes the need for the adoption of any justifiable measure to allocate
the resources equitably to all the nook and cranny of the economy. The
study suggested some measures which should be considered when resources
available are being allocated to the needed sectors of the economy.
LIMITATION
The problem
that initiated this term/ project would
have been completely solved, if more time were given to the researcher to source information. As a result
of the limited time, time given by the management to submit the topic for
approval, writing of the study and submission of the term paper refrain the
researcher from going outside the state to seek for information.
Finance is another aspect of the
limitation which stops the researcher from visiting the offices where all these
duties are exercised, most especially Abuja (FCT) and other press centres that
have full information pertaining to this prevailing task across the
nation. The structure of the term paper
writing should have appeared in a computerised form, but due to financial
constraint the researcher was unable to meet his demand.
Relevant materials for successful
completion of the term paper with in the metropost is another limitation the
researcher encountered during the period of term paper writing. Besides, inadequate material forced the
researcher to conclude the term paper even though he has not had the
intention of concluding the term paper.
DELIMITATION
Revenue is
a vast topic which many scholar have contributed in defining what revenue is
all about, the researcher decided to
limit it to revenue resources in Nigeria and its equitable
allocation to the needed sectors of the
economy.
REFERENCE
NWOBODO P.U
& Citizenship Education An introductory Approach
(Enugu JTC Publisher 1999).
EJILI: Basic Economics,
Enugu Mary
Dan Publisher
(1996).
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