Explain at least four of the principles that guide the allocation formulae used by the Revenue Mobilization, Allocation and Fiscal Policy Commission

Principles of Revenue Allocation in Nigeria
Revenue allocation refers to the redistribution of fiscal capacity between the various levels of government, or the disposition of fiscal responsibilities between tiers of government. 
Revenue allocation is meant to attain two broad objectives, namely, efficiency and equity. However, the allocation formula is guided by certain allocation principles like population, equality of states, internal revenue generation, and landmass and principle of derivation. These principles according to Salami (2011) are exhaustively explained below:
 *Derivation principle* . The principle believes that revenue in the federation account should be allocated on the basis of each state’s contribution to total revenue. That is, all revenue which can be identified as having come from, or can be attributed to, a particular region or state should be allocated to it. This principle was criticized because it makes rich states (or naturally endowed states) richer because the more endowed or developed states will contribute more to the federation account, starving the less endowed states
 *Principle of need* . The principle advocated that states are not equally endowed with resources, some states are more populated and developed than others, and therefore, more resources should be given to the less developed states to bridge the gap in development.
 *Principle of national interest.* The principle is based on the importance attached to developing all states to increase progress and sense of belonging. It will promote national unity by sharing the revenue in the federation account equally among States. This formula was to strike a balance between equity, and needs of national economic/ political growth leading to stability.
 *Principle of independent revenues.* This principle advocates that states can introduce or charge revenue-yielding taxes within the state as long as it is a stable source of revenue but must conform to the principles of taxation within the economy and take into consideration national interest.

for further reading on this consult:

Salami, C. G. E. (2011). Enterpreneurship and Youth Unemployment in Nigeria: the Missing ling. Global Jornal of Management and Business Research, 11(5), 115-146

Sylvester O. & Sunday A. O. (2019). Resolving Revenue Allocation Challenges in Nigeria: Implications for sustainable National development. The American Economic Jornal DOI 10.1177/0569434518775324