Fiscal federalism and issues of resource control in nigeria. The legal framework of merger and acquisition in nigeria. Conceptual issues fiscal federalism is a byproduct of federalism. Agitation, allocation, centralism, conflicts, continuity, dynamism, hegemony, interregnum, military. However, the history of federal system in nigeria could be dated back to the. The politics of revenue allocation and resource control have been a dingdung affair for a very long time in nigeria. Fiscal federalism and framework for fiscal policy in nigeria.
Theory and dimensions dare arowolo lecturer, department of political science and public administration, adekunle ajasin university, nigeria abstract the dynamism and complexity of nigerias federalism has attracted academic scrutiny. More so efforts should be made to ensure that all tiers of government adhere to fiscal transparency, accountability and. Democratization and national integration in nigeria. Public finance and financial policy under fiscal and. Akindele and olaopa2002 held that fiscal federalism was deeply rooted in the federal system of government. Fiscal federalism, local government, autonomy, finance 1. The act applies to all commercial activities carried out or having an effect in nigeria and includes provisions dealing with merger control, restrictive agreements, abuse of dominance, monopolies, price regulation and consumer protection. The relationship between the principle of derivation and resource control sam ugwu chijioke ph. In economics, it is a subfield of public finance that studies the financial relations a revenue and expenditure a between the different levels of. This paper, therefore, inquired into the causes of dissatisfaction and violent agitation arising from fiscal federa.
Umoren and olokoyo 2007 studied merger and acquisition in nigeria. Apr 23, 2012 the centralization of nigerias fiscal federalism began with the report of the dina commission 1968 which argued that an appropriate revenue allocation system should result in a more equitable distribution of revenue among the states to achieve a balanced development of the federation. A cluster analysis of revenue allocation to states and local government areas, 1999 2008 olofin et al in recent years, the issues of resource control, revenue allocation and fiscal federalism have dominated discussions at various levels of nigerias political debate. Introduction the concept of local government simply implies government at the grass root level. An examination of relevant issues in nigerias fiscal federalism international journal of research in humanities and social studies v2 i3 march 2015 3 political units because benefit regions for many public goods and services are open entities. An analysis of issues and challenges 40 research centre for management and social studies evolution of nigerias fiscal federalism nigerias fiscal federalism is anchored on economic, political, constitutional, social and cultural development. Implications of nigerias draft petroleum fiscal policy. Federalism and groupbased inequalities in nigeria global centre. The relative roles of the three tiers of governmentthe federal government, the. Revenue bases at both national and sub national levels are small, volatile and monolithic. An overview of core issues by kayode oladele according to professor akpan ekpo, a onetime vice chancellor of. Theory and dimensions abstractthe dynamism and complexity of nigerias federalism has attracted academic scrutiny.
Nigerian fiscal federalism seen from a comparative perspective. The centralization of nigerias fiscal federalism began with the report of the dina commission 1968 which argued that an appropriate revenue allocation system should result in a more equitable distribution of revenue among the states to achieve a balanced development of the federation. But it seems nigeria suffers the most at its subnational levels. The visionary development of federalism specifically from 1954 to 1965 abruptly ended with the mutiny of january 15, 1966, which not only eliminated some of the founding fathers of federalism in nigeria, but also killed the essence of federalism itself through a coup d. One of the most crucial challenges to nigeria s ailing fiscal federalism is the inability of states to raise, retain and manage revenue.
Fiscal federalism in nigeria in any federal system, there must be an arrangement on how the revenue of the state will be shared among the component parts. Fiscal federalism in nigeria an analysis of issues and. It is against this background that this paper examines the restructuring debate in contemporary nigeria within the context of the legacies of military regimes on nigeria s federal system. Shiyanbade department of public administration obafemi awolowo university ileife, nigeria abstract this study examined the relationship between fiscal federalism, governance and local government finances in. Analysis of performance pre and post consolidation of thirteen mega banks in order to consider if there had been improvements. Taxation, revenue allocation and fiscal federalism in. A cluster analysis of revenue allocation to states and local government areas, 1999 2008 article pdf available july 2012 with 322 reads how we measure reads. Before we start discussing federalism in nigeria, it is pertinent to know what federalism really is. The act repeals the consumer protection act, cap c25, 1992 the consumer protection act and introduces a dedicated competition law regime to nigeria. Fiscal federalism and local government finance in nigeria. Regulatory implications for merger transactions in nigeria. Great ap express publishers limited, 2006 finance, public 259 pages. The role of states and local governments prepared for the nigerian per steering committee by stuti khemani july 24, 2001 introduction 1. While, the remaining part of the niger for example, idah was merged with.
Fiscal federalism in nigeria an analysis of issues and challenges. Idiagi department of economics, faculty of social sciences, nasarawa state university, keffi. Federalism, nigerian federal constitution and the practice of. Fiscal federalism in nigeria understanding the core issues. Fiscal federalism and framework for fiscal policy in nigeria joseph m. Taxation, revenue allocation and fiscal federalism in nigeria. We can only hope for the quick passage of the relevant. Ojide makuachukwu gabriel 1 and ogbodo joseph charles 2. Fiscal federalism, governance and internally generated revenue. A cluster analysis of revenue allocation to states and local government areas, 1999 2008 olofin et al woller and philipps 1998 also cannot find a robust relation between economic growth and decentralization, using a sample with a lower number of developing. Resource allocation and management as well as fiscal federalismdecentralization have remained contentious issues in a federal state such as nigeria. Democratization and national integration in nigeria martin ikechukwu ifeanacho abstract. Fiscal federalism, governance and internally generated. In the course of finding solution to this problems, this paper focuses on the following issues.
The feature of nigerian federalism could only be better understood by a reproduction of the definition of the concept federalism, professor nwabueze in his definition, defined federalism as an arrangement whereby governmental powers within a country are shared between a national, country wide government and a number of regional governments. Merger and acquisition is a unique field in the nigeria legal system, and this is connected to the limited expertise in this area. Yet, even today, this issue continues to be in the front burner of national discourse. Public finance and financial policy under fiscal and monetary federalism. In nigeria s practice of federalism for sixtythree years, various issues of resource control agitation, controversies, conflicts, disagreement over vertical and horizontal allocation of revenue, corruption and excessive politicking have shaped and dominated the entire federal system. The federal competition and consumer protection act 2019. Faculty of management sciences, nnamdi azikiwe university, awka, anambra state, nigeria. 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 oates, 1999. In nigeria, revenue allocation is taken as the distribution of national revenue among the various tiers of government in the federation in such a way as to reflect the structure of fiscal federalism. Pdf federalism, military legacies and the restructuring. The local government is the most critical and important level of government because it deals directly with the citizens of a particular state. Fiscal federalism in nigeria understanding the core issues by kayode oladele federal systems emerge in two broad ways both of which have epochal implications for development. Prepared for the nigerian per steering committee by stuti.
Fiscal federalism in nigeria is characterized by extensive vertical and. An overview of core issues by kayode oladele according to professor akpan ekpo, a onetime vice chancellor of university of uyo, during his 2004. The issue of fiscal federalism has engaged various commissions and committees since the colonial days. This paper, therefore, examined the evolution, structure, and practices of fiscal federalism in nigeria. The calls or demands for resource control clearly demonstrate that this is still an unsettled issue. Democratization is closely associated with the enabling environment for political integration and development. Ekpo nigeria has a population of about million people. This is in order to make them economically independent and boost their internal economies via more production. This is because it has generated so many problems capable of threatening the corporate existence and continuity of the nigerian state. An examination of relevant issues in nigerias fiscal federalism. Resource allocation and management as well as fiscal federalism decentralization have remained contentious issues in a federal state such as nigeria. Nigerian fiscal federalism seen from a comparative. In achieving this, the paper adopted both descriptive and analytical methods by. This is not unexpected as the federal government is solely responsible for the collection of mining rights and royalties, petroleum profit tax nigerias major.
Interrogating the revenue allocation in intergovernmental relations, fiscal federalism and local government finance in nigeria bolanle w. However, the history of fiscal federalism in nigeria became glaring from 1940s, such that. Fiscal federalism in nigeria understanding the core. It does not represent the reality of the practice of federalism and nor, in my view, would such a true federalism lead to good government. Since it is fundamentally true that the challenges of fiscal federalism are enormous in nigeria, the paper attempts to look into the importance of fiscal federalism for good governance in nigeria. Obong victor attah has again said that, unless nigeria adopts the true fiscal federalism system, the country would continue to wallow in. Fiscal federalism and development in nigeria odigwe. D eme okechukwu innocent emeh, ikechukwu eke jeffry department of public administration and local government, university of nigeria, nsukka. Mar 28, 2014 fiscal federalism which mirrors the amount of fiscal autonomy and responsibility accorded to subnational government has been an important subject in the policy equation of many developing, transition, and developed countries. Fiscal federalism, on the other hand, involves changing the tax policy of nigeria so that states, not the federal government, benefits from valueadded tax vat, which is the tax paid by companies on good and services produced. Federalism remained a part of nigerias political system since independence in 1960 except for a brief.
Given the territorially delineated cleavages abounding in nigeria and the historical legacy of divisions among ethnic groups, regions, and sections, the federal imperative was so fundamental that even military governmentscharacteristically unitarian, hierarchical, and centralistattached importance to the continuation of a federal system of government. Our central argument is that nigerias fiscal federalism has not spurred the desired development as envisaged by the architects of the system. An examination of relevant issues in nigerias fiscal. It involves the financial relationship among the three tiers of government. Fiscal federalism in the nigerian context involves the allocation of expenditure and taxation powers shared among the federal, state and local governments. Fiscal federalism in nigeria has been a very contentious issue that has evoked series of national debates, discussions and conferences in recent times. In achieving this, the paper adopted both descriptive and. Nigeria is one of africas most diverse and deeply divided states. May 04, 2012 this did not enhance our fiscal federalism which at this time was at its vibrant stage. This was the beginning of the downward sloop of fiscal federalism in nigeria with all its attendant benefits and the ascension of military centrism which strained intergovernmental fiscal relationships. Hypotheses a there is a relationship between the problem of revenue allocation in nigeria and the. Federalism in nigeria refers to the devolution of selfgovernance by the west african nation of nigeria to its federated states, who share sovereignty with the.
The evolution, development and practice of federalism in nigeria. Federalism refers the existence in one country of more than one level of government, each with. Nigerian fiscal federalism, effect on development, its importance to national development, summary of the existing various principles and sharing formula, the contending issues, objective of fiscal relations and theory of fiscal federalism. Fiscal federalism news latest breaking stories and top. Fiscal federalism fiscal federalism and macroeconomic. Fiscal federalism in nigeria research paper 2971 words. Federalism can be seen as a system of government in which governmental powers that exist in a country are shared between central government and other component units i. The significance of this research is to provide local and foreign investors with the whither knowhow of the practice of merger and acquisition in nigeria. The paper noticed that the principle of fiscal autonomy and fiscal integrity are paramount aspects of the survival. Read all the latest news, breaking stories, top headlines, opinion, pictures and videos about fiscal federalism from nigeria and the world on today. Fiscal federalism which mirrors the amount of fiscal autonomy and responsibility accorded to subnational government has been an important subject in the policy equation of many developing, transition, and developed countries.
Nigeria witnessed an unprecedented wave of mergers and acquisitions in its banking sector in the post1995 and 2009 periods as a result of regulatory mandates issued by the central bank of nigeria, aimed at strengthening the capital base of nigerian banks. Taxation, revenue allocation, and fiscal federalism in nigeria 31 total nigerian government revenues were collected by the federal government. The relative roles of the three tiers of governmentthe federal. Examining weak subnational finances in nigerian states chukwuma agu african institute for applied economics,enugu, nigeria abstract one of the most crucial challenges to nigerias ailing fiscal federalism is the inability of states to raise, retain and manage revenue. Fiscal federalism and issues of resource control in nigeria nenyiaba, c. Fiscal federalism and good governance in nigeria since. It does not represent the reality of the practice of federalism and nor, in my view, would such. Mar 29, 2017 former governor of akwa ibom state, arc. What i can tell you that while there is some truth about the above notion of federalism, it is a limited and extreme view. Federalism is a political concept in which power to govern is shared between national, and subnational governments creating what is often called a federation arowolo. Fiscal federalism, not resource control nigerianstalk. Federalism and political restructuring in nigeria edited by kunle amuwo twenty essays by four generations of nigerian scholars are included in this volume, the first to examine the historical, political, economic and comparative dimensions of attempts by the military to restructure the nigerian federation. Fiscal federalism and economic development in nigeria. Obong victor attah has again said that, unless nigeria adopts the true fiscal federalism system, the country would continue to wallow in its current.
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