These contending issues include the principles considered in the allocation of revenue in Nigeria. Revenue allocation refers to the sharing of federally generated revenue amongst the Federal, State and Local governments. The revenue and resources generated in the country are shared amongst these three tiers of government according to their constitutionally prescribed responsibilities. The internal autonomy granted to the regions under the Richard’s Constitution of 1946 coupled with the sharing of Constitutional responsibilities raised the problem of revenue allocation in Nigeria to a contentious level.
Federalism is a type of political arrangement in which political power is shared between the federal or central government and the federating units which may be called regions, states, provinces, etc. Nigeria became a federation of three regions in 1954 while today it is a federation of thirty-six states. The United States is a federation of fifty
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Availability of human and natural resources: Nigeria has enough of these resources to run a federal system.
5. Geographical Factor. Different component units are geographically near to one another, making it easier for the adoption of a federal system.
6. For effective Administration: Federalism makes for duplication of functions creating the atmosphere for an enduring and effective administration.
7. Bringing Government to the Grass-roots level. Federalism makes the people to be involved in governance and also be involved in the policy.
8. The rights of the minorities and other interest groups: Minority rights are recognized and protected in a federal system.
However, the rule of the game of politics does not stipulate that the politicians should give up their interests entirely, but they should satisfy their “self -interests” and assist the citizens to satisfy their “self - interests” too. This should create “a civic culture” where the people would not be discouraged from participating actively in the political discourse. It is a vision of “democracy” that is branded the "living democracy" or what may be called “Peopleocracy”. If the Nigerian government is truly the “government of the people ” and “by the people” (as stated by President Abraham Lincoln when he defined an ideal democracy during the Gettysburg address in November 1863), then Nigerians should control its process. Therefore, “an active” and educated and well -informed citizenry should be able to address