Revenue Allocations to States in Nigeria: A Poverty Ranking Index Analysis

The crude oil dichotomy in Nigeria has brought a huge financial set-back to the Nigerian state. Worse of it all is the parity in the sharing formula and neglect of the states that bears the burden of diversification of exploitation and exploration. The paper conducted a comparative analysis of seven years federal allocations to states in the six geopolitical zones in Nigeria from 2017 to 2023. The objective was to ascertain the state and geopolitical zone that received the highest revenue allocations within the period reviewed and the level of poverty based on observed infrastructural development. The paper made use of secondary data sourced from CBN statistical bulletin, text books and journal publications. The study was anchored on “Taxation Theory”. Descriptive statistics of tables and frequency tables bar and pile charts were adopted in the data analysis. it was discovered that Abuja received the highest allocation in North-central while Nasarawa state ranked highest in poverty index. In the North-East geopolitical zone, the highest allocation was received by Borno state while Gombe ranked highest in poverty index. For the North-West geopolitical zone, Kano state got the highest revenue allocation while Kebbi states second. The highest allocation was received by the North-West geopolitical zone of Nigeria, explaining injustice since the highest contribution to national treasury does not come from North-West, and by 13 percent derivative based on resources availability it should have been to the South-South geopolitical zone. The paper finally concludes that sharing formula among the six geopolitical zones is laced with injustice as the bird that bears the Golden Fleece is not compensated in terms of proceeds from their region. The paper recommends that government should provide ‘extended’ services where possible- homework support, uniforms, free school meals or wrap around care to both all levels of schools in the country. Government and agencies should ensure that children are not only taught about how to manage money as article of merchandise and stock in trade of life as part of school curriculum. Organizations should be made to provide support for families that are struggling with the cost of living by sharing what they can afford, with parents.