Economic and Financial Review


Central Bank of Nigeria


Federalism, Tax Assignments, Inter-Governmental Fiscal Relations, Constitution, Fiscal Imbalances, Revenue-Sharing


This paper build on the history as well as the current legal framework of tax assignment and revenue-sharing in Nigeria to identify the challenges while also drawing from the theoretical framework for policy options which will provide for a stable federal system in Nigeria. The paper recommended among others the strengthening of states internal revenue bases, adjustments on the vertical and horizontal revenue-sharing formula, effective compliance with the allocation of the mandatory 10% of states internally generated revenue. The paper concludes that changes to the existing tax assignment and revenue-sharing arrangements will go a long way in protecting our nascent democracy.

Author Bio

Rapu S. C. is a Deputy Director in the Research and Statistics Department, Central Bank of Nigeria,

Publication Title

CBN Economic and Financial Review





Recommended Citation

Rapu, S. C. (2006). Tax Assignment and Revenue Sharing in Nigeria: Challenges and Options. CBN Economic and Financial Review. 44(1), 1-36.

Included in

Economics Commons



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