Fiscal Federalism in Nigeria: A Contemporary Revew

Akindele, S.T.; Olaopa, Olawale R.; Obiyan, A. Sat

doi:10.1080/09718923.2002.11892350

Cited by 8 publications

(7 citation statements)

References 1 publication

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“…Fiscal federalism, stemming from federal political arrangements, denotes the outcome of a political structure where governing power is distributed between a central government and subnational governments forming a federation (Arowolo, 2011;Akindele and Olaopa, 2002). Described by Arowolo (2011: 4) as a "divergent in concept, varied in ecology, and dynamic in practice" political theory, federalism entails each level of government operating autonomously, wielding independent authority within its defined scope, and possessing taxing powers for autonomous revenue sources (Vincent, 2001).…”

Section: Ethiopian Civil Service Universitymentioning

confidence: 99%

The Impact of Intergovernmental Transfers on Fiscal Behaviour of Local Government in Ethiopia

Mamo

2024

J. Afri. Devt. Stud

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This paper examines the effect of intergovernmental fiscal transfers on the fiscal behaviour of local governments in Ethiopia for the period 2004-2018. The empirical findings suggest that central government grants bolster state-level employment and expenditure. However, grants from the central government to states do not crowd out state-level revenue collection. Hence, this paper argues that fiscal decentralisation in Ethiopia has mostly, at least in theory, taken the form of devolution of the power to tax and spend public money. However, on average state-level revenue can only finance up to 26 percent of their annual expenditure. As a result, fiscal federalism in Ethiopia appears to be a delegation of spending responsibilities. It must be considered in a decentralized tax system, but with a transfer scheme and political hierarchy. The results are robust to alternative econometric estimation techniques.

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Section: Ethiopian Civil Service Universitymentioning

confidence: 99%

The Impact of Intergovernmental Transfers on Fiscal Behaviour of Local Government in Ethiopia

Mamo

2024

J. Afri. Devt. Stud

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“…The theory of fiscal federalism, initially conceptualized by Musgrave (1959) and Oates (1972), focuses on the logical allocation of public sector responsibilities and financial resources among multiple tiers of government (King 1984, as cited in Bird, n.d.). The emphasis here is on the requirement to improve the public sector's performance and service delivery by ensuring a proper alignment of fiscal instruments and responsibilities (Arowolo, 2011;Shah, Rajaraman, & Rezende, n.d.). In addition, the importance of intergovernmental fiscal relations and subnational governance is further amplified by globalization and changes in regional concentrations of economic activities (Boadway and Dougherty, 2019).…”

Section: Fiscal Federalismmentioning

confidence: 99%

“…Almost every nation has multiple levels within its public sector. The fundamental objective of decentralization is to assign functions and fiscal instruments to the appropriate governmental levels (Arowolo, 2011;Akindele & Olaopa, 2002;Dang, 2013;Ring, 2000).…”

Section: Introductionmentioning

confidence: 99%

Exploring Fiscal Federalism and the Structure of Public Spending in Nigeria

Chenge

2024

J Polit Sci

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Globally, there has been a noticeable shift towards fiscal decentralization during the last few decades. As a result, subnational levels of government now have more latitude for revenue generation and spending decisions. Nations all around the world are recognizing the benefits of fiscal decentralization. Fiscal federalism, as a component of fiscal decentralization, deals with the public sector's vertical organization. It examines the functions of the various governmental tiers and their interactions with one another through various fiscal mechanisms. The study aims to investigate the impact of Nigeria's fiscal federalism on public spending and the welfare of its citizens. The Wiseman-Peacock theory was adopted as the theoretical framework. The study was based on a documentary research design. Content analysis was used as a method for analyzing data. The derived findings revealed that Nigeria’s revenue-to-GDP ratio is among the lowest in the world. It also established that revenue shortages have created imbalances in government expenditure, i.e., recurrent above capital expenditure. The study recommends that addressing loopholes in the current tax legal framework, allocating spending more efficiently, and strengthening institutions are approaches to be applied to put Nigeria on a sustainable fiscal path.

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“…The residual power of the state governments indicated in the table refers to functions that are not assigned to the federal government or the local governments. The exclusive power is for the central government to conduct nationally strategic functions, while the concurrent power is for the central and state governments to carry out their shared functions (Akindele et al, 2002).…”

Section: Fiscal Federalism In Nigeriamentioning

confidence: 99%

Fiscal and Monetary Policies in Nigeria: Key Aspects, Performance, and Policy Options

Ibironke

2018

JSSR

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This paper reviews key aspects of Nigeria’s fiscal and monetary policies with the aim of examining the performance of the policies. The paper provides a synthesis of key facts and draws policy conclusions which include the following: (i) fiscal policies such as the oil-price-based fiscal rule introduced in 2004 have increased fiscal discipline and reduced fiscal deficit in Nigeria, hence the policies should be maintained; and (ii) compared to the period of direct or controlled monetary policy approach, monetary policy has performed better in Nigeria under the market-based approach introduced in 1993, therefore the latter approach should be maintained.

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Fiscal Federalism in Nigeria: A Contemporary Revew

Cited by 8 publications

References 1 publication

The Impact of Intergovernmental Transfers on Fiscal Behaviour of Local Government in Ethiopia

The Impact of Intergovernmental Transfers on Fiscal Behaviour of Local Government in Ethiopia

Exploring Fiscal Federalism and the Structure of Public Spending in Nigeria

Fiscal and Monetary Policies in Nigeria: Key Aspects, Performance, and Policy Options

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