Fiscal federalism in nigeria

This is an eternal problems of the government which affect every citizen in Nigeria. Read more about fiscal federalism and how it works in this country. You will understand a lot of things when you read this article.

Fiscal federalism in nigeria

Jump to navigation Jump to search For the use of the term fiscal federalism as applied to Scotland, see Full fiscal autonomy for Scotland. As a subfield of public economicsfiscal federalism is concerned with "understanding which functions and instruments are best centralized and which are best placed in the sphere of decentralized levels of government" Oates, In other words, it is the study of how competencies expenditure side and fiscal instruments revenue side are allocated across different vertical layers of the administration.

An important part of its subject matter is the system of transfer payments or grants by which a central government shares its revenues with lower levels of government. Federal governments use this Fiscal federalism in nigeria to enforce national rules and standards.

Fiscal federalism in nigeria

There are two primary types of transfers, conditional and unconditional. A conditional transfer from a federal body to a province, or other territory, involves a certain set of conditions. If the lower level of government is to receive this type of transfer, it must agree to the spending instructions of the federal government.


An example of this would be the Canada Health Transfer. An unconditional grant is usually a cash or tax point transfer, with no spending instructions. An example of this would be a federal equalization transfer. This may be noted that the concept of fiscal federalism is relevant for all kinds of government: In fact, fiscal federalism is a general normative framework for assignment of functions to the different levels of government and appropriate fiscal instruments for carrying out these functions [3] InGovernor of Rivers State of Nigeria, Ezenwo Nyesom Wike said that he believes true fiscal federalism will "strengthen the economy of his country as all sections will develop based on their comparative advantages".

Chanchal Kumar Sharma [5] clarifies that while "fiscal federalism constitutes a set of guiding principles, a guiding concept" that helps in designing financial relations between the national and subnational levels of the government, "fiscal decentralization on the other hand is a process of applying such principles".

Application differs because unitary and federal governments differ in their political and legislative context and thus provide different opportunities for fiscal decentralization.The United States government is based on federalism, with governmental power divided between several entities.

This lesson explores federalism and explains the factors that led to its use in the U.S.

Fiscal federalism in nigeria

Over the years the fiscal federalism in Nigeria has cr ystallised and remained dynamic as a result of i ts multiplicity in terms of ethni c co mposition and pluralism vis-à-vis socio- . Federalism in Nigeria refers to the devolution of self-governance by the West African nation of Nigeria to its federated states, who share sovereignty with the Federal Government History.

Federalism has been present in Nigeria since the former British colony was reorganized into a. The OECD Fiscal Federalism Series presents policy analysis of, and statistics about, intergovernmental fiscal relations and state/regional and local public finance. Historical development of fiscal federalism in Nigeria Tax federalism in Nigeria is based on political, historical, economic, cultural, geographical, and social factors.

Parliamentary or Presidential Democracy?

In all these cases, budgetary mechanisms have been a moot point since AMBASSADOR (DR.) RUFUS OLORUNTOYIN AKEJU is a Lagosian from Lagos Island. He was born on 25th May, , married and blessed with children. He bagged his Bachelor of Arts Degree in Political Science from the University of California at Berkley, California USA in March

Fiscal federalism network - OECD