The conference was under the chairmanship of the Secretary of State for the colonies. The London conference of 1953 had decided that the principle of ‘Needs’ and National Interest will be part of the 4 principles under revenue allocation under the revised constitution. Sir Louis Chick was appointed Sole Fiscal commissioner and on the lagos conference of 1954, he recommended as follows:
1. That the system under which the proceeds from the sale of tobacco and the whole of the revenue from petrol to be allocated to the Regions, should continue. Half of the excise duty from beer should be similarly distributed to Regions in proportion to consumption. Half the net proceeds of export duties should go to the Region of the export origin.
2. The tax on personal income tax should be handed over the Region in which the tax payers resided. The whole of the proceeds from the mining royalties should go to the Region from which the mineral was extracted.
3. One half of the net proceeds of import duties rather than tobacco and petrol should be shared out among the Regional governments – The North and East each receiving 30 percent cost and West 40 percent.
4. The federal government was empowered to make grant to any Regional government which found itself in serious financial difficulty through causes beyond its control.
5. One of the major decisions was the regionalization of the civil service and the judiciary. It was agreed that both the central government and the Regional governments should have their respective public service.
6. The Governor-General and Governors of the Regions were in-charge of recruitment and promotion of civil servants and had the power to appoint members of the Public Service Commission.
7. The Governors had the power to appoint Judges.
8. Southern Cameroon was granted an autonomous status.
9. Southern Cameroon was to be represented in the Nigerian Federal Legislature by 6 members and 1 member in the council of Ministers.
All these said above is the report of lagos conference of 1954.