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Re-Examining the Failing Inter-Governmental Fiscal Relations and Sustenance of Nigerian Federation: An Empirical Study

Author(s): Ayo Adesopo

Journal: Asian Social Science
ISSN 1911-2017

Volume: 7;
Issue: 10;
Date: 2011;
Original page

This paper examined the negative impact of the conduct of intergovernmental fiscal relations (IGFR) on the sustenance of Nigerian federation. It showed the extent of centralization of IGFR with particular reference to the distribution of revenue-raising responsibilities and spending responsibilities as well as revenue sharing arrangement among the vertical organs of government. Specifically, the extent of fiscal centralization was examined and analysed on the basis of Federation Account operation, current revenue structure of the three vertical organs, total revenue decentralization ratio, federal-internal revenue sources ratio of the state and FCT and local government, general expenditure decentralization ratio, and summary of fiscal balance/imbalance of some selected states. The paper went further to identify the effects of the IGFR on Nigerian Federation before finally making some recommendations with emphasis on the need to revisit the fiscal relationship to resolve the recurring crises threatening its sustenance.

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