A recurring decimal in Nigerian federalism is the issue of resource allocation and sharing of revenue between the federal.' government and the component units. The Nigeria physical federal arrangement is unique because by the nature of the Nigerian arrangement, the federal government controls all the resources, hence distributes revenue to the states and local governments based on criteria, which she determines. The problem, has always been there with which criteria should take precedence in the revenue allocation formula, public expression for a new formula that will favor them.

Which has always been the case in the country. The recent public expression for resource control by south -south geo-political zone is a clamor for new revenue allocation formula that will increase the derivation fund above its present fixed percentage as contained in section 162 sub-section 2 of the 1999 constitution. A reduction of the responsibility and function of the federal government and reduction of the federal governments share in the federation accounts. This study has examined the issues of revenue control in details and came up with some findings and recommendations.

Title page
Table of content

1.1       Background of the study
1.2       Statement of the Research Problem
1.3       Aims and objectives
1.4       Hypothesis/Assumptions of the Study
1.5       Significance of the study
1.6       Methodology
1.7       Theoretical framework
1.8       Scope and limitation of the study
1.9       Definition of term and concepts
1.10 Outline of chapters

2.0       Literature Review
2.1       Concept of federalism
2.2       Nigerian federalism
2.3       Fiscal federalism

3.0       Historical Perspective of Nigeria Fiscal Federalism
3.1       Introduction
3.2       Revenue allocation in Nigeria

4.1       Presentation and Analysis of the Resource Control Debate
4.2       Background of the Issue
4.3       Revenue Allocation in Nigeria June 1999
4.4       Presentation of the resource control argument
4.5       Concept argument

5.1       Summary of the work
5.2       Recommendations

1.1         INTRODUCTION
Federalism has come to be accepted as the most variable formula for coping with the problems associated with multi-ethnic state. It is a system of government which presupposes constitutional division of powers among levels of government. Federalism as practiced in Nigeria is at the best nothing more than mere constitutional design (merely division of power without practicing the principles of federalism) imposed on Nigeria by the colonial masters.
Federalism in Nigeria, is a compromised solution to the problems of ethnic mistrust and mutual suspicion, with the ethnic nationalities that made up the country as a result of creation of a state out of divers' ethnic, tribal,, cultural and religious groups. After creating the country the colonizers introduced a federal system of government under the Richard constitution of 1946 and liffleton constitution of 1954, in agreement with the political leaders so as to address the problems which a unitary form of government may pose to divers' people of Nigeria. There are some factors that account for the introduction of federalism in Nigeria. These include both internal and external factors. The practice of federal system of government in Nigeria cannot be understood without tracing the historical evolution of the political history of Nigerian state. Nigeria is characterized by predominant of tree regions which are: The Hausa and Fulani of the north, the Yoruba of the west and the Igbo of the east.
The major problems affecting federal practice in Nigeria are: the issue of resources allocation, sharing and usage of the tax burden, the issue of what criteria should take procedure over the other in the sharing of federally collected revenue. All these and more has for long remained problematic as far as federal practice is concern in Nigeria. The issue of revenue allocation in Nigeria dated back to the Philipson commission at 1940, to 1979 constitution that provide the establishment of federal character principle and inl995 gives way to creation of federal character commission to ensure the implementation of federal character principle as preserved in the constitution. The 1999 constitution revealed that revenue allocation is in favor of the federal government and that of the criteria used in horizontal allocation of revenue among states has also been faulted. Problem arises as to which criteria should determine how revenue.....

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