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The study examines how federation account allocation affects economic growth in Nigeria, suggesting targeted development efforts.
The study examined the impact of federation account allocation on economic growth in Nigeria for the period of 2004 to 2021 using federal, state and local governments’ shares of the federation account to measure federation account allocation. The study employed the ordinary least square regression technique in data analysis and found that federal government share of federation revenue has a significant negative impact on economic growth in Nigeria; State government share of federation revenue has a significant positive impact on economic growth in Nigeria, while Local government share of federation revenue has no significant impact on economic growth in Nigeria. The study therefore recommended that all levels of government should make efforts to embark on more developmental projects such as agricultural and industrial development with their share of federation revenue so as to positively impact and enhance the growth of the economy
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Okafor et al. (2025) studied this question.
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