The Political Economy of Revenue Allocation and Regional Development Disparities in Nigeria: A Focus on the North East Zone

This study analyses the political economy of Nigeria's revenue allocation system and its relationship with development disparities in the North East geopolitical zone. The North East zone comprising Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe states consistently records the lowest human development indicators in Nigeria, despite receiving statutory allocations from the Federation Account. Drawing on distributive justice theory and recent political economy literature on Nigerian fiscal federalism from 2020 to 2024, the study employs a descriptive documentary research design. Data are sourced from Federation Account revenue distribution records, National Bureau of Statistics reports, and state budget documents spanning five years. Trend analysis, proportional allocation assessment, and cross-zonal comparative analysis are applied. The study expects to find that the current revenue formula favours derivation and land mass principles over population density and development need indices, placing the North East at a systematic disadvantage. The compounding effects of insecurity-driven investment deterrence and the destruction of productive infrastructure are also analysed. The study contributes to national debates on fiscal federalism reform and the equity dimensions of Nigeria's revenue sharing architecture. Recommendations will address revising revenue allocation principles to explicitly incorporate development need indices and bolster the North East Development Commission's operational mandate and funding. Keywords: revenue allocation, fiscal federalism, regional development, North East Nigeria, political economy