Which of these are shared sources of revenue among the three tiers of government in Nigeria? I. Statutory allocation II. Income tax III. Value added tax

To determine which sources of revenue are shared among the three tiers of government in Nigeria, let's analyze each option:

• I. Statutory allocation: This refers to the revenue distributed from the Federation Account to the federal, state, and local governments. While it represents the shared revenue received by the tiers, it is the mechanism of sharing rather than a primary "source" like a tax.
• II. Income tax: This term can be ambiguous.
  • Personal Income Tax (PIT) is primarily collected by state governments.
  • Company Income Tax (CIT) is collected by the federal government, and its proceeds are paid into the Federation Account, which is then shared among the three tiers. Therefore, if "Income tax" refers to CIT, it is a shared source.
• III. Value added tax (VAT): This tax is collected by the Federal Inland Revenue Service (FIRS) and its proceeds are paid into the Federation Account, which is then shared among the three tiers of government. VAT is unequivocally a shared source of revenue.

Considering the options, "sources of revenue" typically refers to the actual taxes or levies. Both Company Income Tax (CIT, which falls under "Income tax") and Value Added Tax (VAT) are taxes whose proceeds are pooled into the Federation Account and subsequently shared. Statutory allocation is the distribution of these pooled funds.

Therefore, the direct sources of revenue that are shared are Income Tax (specifically CIT) and Value Added Tax.

The correct option is B.