JAMB Government 2019 Objective — Question 28

Question 28 of 40 from the Joint Admissions and Matriculation Board (JAMB) Government 2019 Objective paper, with the correct answer and a full explanation.

Derivation as one of the revenue sharing formular in Nigeria entails

A. equal sharing of revenue between the federal and state governments
B. equal sharing of revenue among the thirty-six states
C. giving back certain percentage of the revenue to the state where the revenue is obtained fromCorrect
D. sharing of revenue based on the discretion of the federal government

Explanation

Under the derivation principle of revenue allocation, a percentage of revenue generated from a state's resources (e.g., oil) is returned to that state, rather than being pooled and shared equally or at federal discretion.

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