The paper attempts to evolve a population growth rate reduction-driven revenue allocation formula among the states of the Federation for Nigeria’s National Development. The paper critically looks at the issue of population growth rate in the country over the years; the Nigerian population situation which includes inflation and falsification of census figures and the attendant acrimony. The paper is of the view that population-revenue allocation nexus is at the root of higher population growth rates and revenue allocation quagmire being witnessed in Nigeria and therefore posits that any attempt at making the states’ population growth rate pattern, a complementary variable to population size, equality of states, and discretion/need/exigency in sharing revenue allocation meant jointly for the states would go a long way to simultaneously slowing down Nigeria’s ever burgeoning population growth rate and engendering equity/social balance in revenue allocation. The paper concludes that all stakeholders in the Nigerian project should embrace the proposal for a better Nigeria. The paper recommends a revenue allocation formula for the states that takes the following shape: equality of states 50%; population size 35.0%; population growth rate 5.0%; and discretion/need/exigency 10%, which would come on stream after the 2016 national population census has been conducted, result analyzed and published.

Population Growth Rate, Revenue Allocation Formula, National Development