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.
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.
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