Nigerian Intergovernmental Financial Relationships From Independence to the 19

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Nigerian Intergovernmental Financial Relationships From Independence to the 19
Walter L Ness
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G. , the companies' income tax, use of the derivation principle has not been attempted. In addition, in the case of certain taxes such as export duties and mining royalties, the principle of derivation as applied in Nigeria refers to the geographical source of the product rather than to even the primary incidence of the taxo Derivation can be applied either by making a revenue source Regional or by assigning a revenue item collected by the Federal Government to the Regions based on statistical ...data concerning the regional derivation of the revenue, In 1951 Phillipson and Sir John Hicks comprised a Commission on Revenue Allocation which added "need" as a criterion for revenue alloca- tion among the central and Regional governments to the already firmly established principle of derivation. In this instance, "need" was sijnply determined by the number of adult male taxpayers in each Region » Specific-purpose grants to the Regions controlled by the central govern- ment were also to be used for purposes in the "national interest.

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