In 2013, the West African Institute for Financial and Economic Management(WAIFEM) bided and won a contract from the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) to undertake a project to derive a new revenue allocation formula for the Nigerian Federation. WAIFEM completed the study and made recommendations to the Commission. The Commission after a careful study of the report was to make suggestions to Government. Thereafter, government was to recommend to the National Assembly who has the constitutional responsibility to enact a new revenue formula. After five years of submitting the study, nothing has happened and with the coming to power of a new government on May 15, 2015, it seems unlikely whether the agitation for a new revenue formula will occupy the present government.

Based on my experience as a participant in the public policy space in Nigeria, I took the decision that the essentials of the study particularly the processes, methodologies, perception of stakeholders and outcomes be made available to the reading public as well as those interested in burning issues and challenges relating to deriving a revenue allocation formula for federal systems like Nigeria. The detailed report remains with the Commission. It is hoped that someday the Commission would share its recommendations with government. Many completed significant reports and studies commissioned by government have never seen the light of the day. The idea is to make this report on deriving a new revenue formula an exception.

I wish to thank the then Chairman of the Commission, Engr. Elias Mbam who gave us the opportunity to undertake the project. We are also grateful to his commissioners from all the states and the FCT as well as the management and staff for cooperating with us during the exercise. Their commitment to ensure a hitch free exercise would remain never green in our memories. We are grateful to all the relevant agencies in the 36 states and the FCT for their’submissions and interactions during the meetings in the six geo-political zones.

I must place on record the contributions of Professor Festus Egwaikhide, Professor Doughlason Omotor, Dr. Udoma Afangide, Dr. Elijah Udo, the late Mr. Sulaiman Bello, Mr. Alvin Johnson, Nlr. Aniekan James and a host of others who went beyond the call of duty in ensuring the completion of the project. Furthermore, appreciation goes to the Chairman and board of WAIFEM for approving the project under the consultancy unit of the Institution and for providing a conducive environment to undertake the study.

This book represents an important contribution to the issues and challenges in the derivation of a revenue formula for federal systems. It is highly recommended to all stakeholders in Nigeria and to those interested in the country’s economic development.

Akpan H. Ekpo

Professor of Economics & Public Policy
Director General, WAIFEM
Lagos, Nigeria.
June 2018