EFFECT OF REVENUE ALLOCATION ON POLITICAL STABILITY OF NIGERIA

Abstract

Revenue allocation has been a source of conflict and controversy in Nigeria since its independence in 1960. Different regions, ethnic groups and political parties have different views and interests on how the revenue should be shared. Some argue for more fiscal autonomy and decentralization, while others advocate for more federal control and centralization. The purpose of this study therefore is to investigate the effect of revenue allocation on political stability of Nigeria. The study adopted a mixed-methods approach, combining quantitative and qualitative data collection and analysis. A total number of Four hundred (400) participants were randomly chosen from 4 purposely chosen tertiary institutions with 100 Political Science students per each tertiary institution making the total of 400 respondents in Lagos state. The chosen tertiary institutions were the ones that offer Political Science as a course. The main instrument used for data collection was a self-structured questionnaire based on the research objectives raised in the study. The data collected were analysed using Regression analysis for the null hypotheses one, while Chi-square statistical tool was used to test the second and the third null hypothesis using IBM SPSS version 26. The study found that there is significant influence of revenue allocation on the incentives and behaviour of political actors and groups in terms of cooperation or conflict; there is significant impact of revenue allocation on the quality and performance of public institutions and service delivery at different levels of government and finally, there is significant effect of revenue allocation on citizens' perceptions and attitudes towards the government and their participation in political processes in Lagos State, Nigeria. The study concluded that political stability and revenue allocation are interrelated and complex issues that require careful analysis and policy design. The study recommends that revenue allocation should be flexible and adaptable, allowing for adjustments and revisions based on changing circumstances and feedback mechanisms. Also, the researcher recommends that revenue allocation should be transparent and accountable, involving broad participation and consultation with relevant stakeholders, such as civil society, private sector and local communities.