The Principles considered in the Allocation of Revenue in Nigeria are:
(i) Principle of derivation: The principle of derivation states that a share of resources should be allocated to areas (states) where they are derived from.
(ii)Equality of units: Equal revenue should be allocated to states.
(iii)The principle of uniform development: More resources should be given to areas considered underdeveloped to level up with more developed areas.
(iv) Population: This principle advocates for more revenue to be given to those areas (regions) with high population.
(v) The principle of needs: Revenue should be distributed according to the needs of an area.
(vi) National interest: The allocation of revenue should be guided by the interest of the nation.
(vii)The principle of minimum national standards: Revenue should be allocated to all states or regions so that a minimum national standard should be set in the performance of some vital functions in areas of health and education.
(viii) Other principles considered are social development, internal revenue generation effort, access to development opportunities, fiscal efficiency, fiscal autonomy etc.