This principle is another important factor considered before arriving at the revenue sharing formula highlighted above.
There is a need for an equity grant to the state generating bulk revenue for the nation. Giving such a state an extra share for a work well done isn’t too much to do.
THE PRINCIPLE OF DEVELOPMENT OF MINERALPRODUCING AREAS
The Constitution of the Federal Republic of Nigeria, 2011 as amended categorically gave this principle in terms of revenue sharing and allocation.
In a bid to curb the menace of the Niger-Delta region i.e the oil-producing part of the country. The Constitution gave these States 13% derivation entitlement from the revenue generated in their region.
THE PRINCIPLE OF POPULATION
Also, revenue is being allocated based on the state population proportions. After all, the aim of the government is to enhance the citizen’s welfare. Thus, it is appropriate if revenue is shared in that regard.
THE PRINCIPLE OF NEED
In the course of revenue allocation between the three tiers of government, each tier needs has to be defined with respect to the functions of one level against another.
Plus, some other financial expenditures, correspondence requirements, and obligations.
THE PRINCIPLE OF LAND MASS AND TERRAIN
Also, this principle of revenue sharing was introduced in a bid to correct the imbalance in the endowments of the state. Of course, the equality of assets doesn’t necessarily mean equality in the development opportunities used.
Thus, the principle of landmass terrain seeks to outline some major measures of succor for the state with fewer endowment factors in terms of social development.
MINIMUM NATIONAL STANDARD
While sharing revenue between the tiers of government, the National standards in some major sectors like Education, Health, Agriculture, and a host of others must be considered.
In a bid to determine how the revenue should be allocated, the principle of even development was also applied in other to ensure that development is evenly spread across all the federation units.
This is important in other not to concentrate development in some selected areas. Thus, the principle prevents imbalances within the nation.
EQUALITY OF STATE
There is no doubt stating the fact that all States are created equally, as such they all must be handled equally. The minimum unit of responsibilities is believed to be the same in every state regardless of the size and capacity. Hence, equality needed to be employed in distributing wealth.
Similarly, this principle of allocating revenue states that each tier of government is capable of generating revenue for itself. Hence, they are all expected to keep some part of the revenue for their own use and purpose.
THE PRINCIPLE OF GENERAL ECOLOGY
The state of ecological problems in some parts of the country needs attention and as such, this principle sees this aspect. While sharing revenue, some of the states that are overwhelmed by the presence of these ecological problems need extra resources than the others.
In with the above, it is very imperative that those states being disturbed by these ecological problems are enhanced and enriched in battling them.