Abstract: The 1946 constitution of Nigeria was the first to regionalize political power in Nigeria, followed by the 1951and 1954 constitutions; the later deepened the forms and shape of regional government in Nigeria. It was also the constitution that systematized the revenue system thus making derivative principle the cardinal revenue allocation format for the three regions. This economic principle spurred the colonial government to modify her agricultural policies as well as the regional governments of Nigeria at independence for a sustainable and reliable economy.