elaborately explain fiscal federalism in nigeria

These therefore, perfectly explain the stunted and re-gressive nature of her federal cultures and practices. The full explanation of Nigeria’s federalism. The power to transform Nigeria into what it has dreamt of becoming now lies in the hands of the Senate. At the same time, themore Nigeria depended on oil, the more the conflict, controversy and politics over oil and resource control and allocation. Principles of Fiscal Federalism anwar shah A large and growing number of countrie s are re-examining the roles of var-ious orders of government and their partnerships with the private sector and civil society in order to improve their ability to serve their people more effectively and efficiently. In 1976, six years after the end of the civil war, the states were further reorganized: State boundaries and names were also reorganized. Federalism is indispensable to rapid democratization in a multi-ethnic society. 1. First coup, counter-coup and the new states, Learn how and when to remove this template message, https://en.wikipedia.org/w/index.php?title=Federalism_in_Nigeria&oldid=1001151073, Articles lacking sources from December 2016, Creative Commons Attribution-ShareAlike License. However, while native-born chiefs and clerks were appointed to govern the provinces, the regions were governed by the British-appointed colonial authorities. Undermining this political heritage of our nation will cause disintegration which is an invitation to anarchy and civil unrest. Fiscal Federalism: Fiscal Discipline and Service Delivery in Nigeria Festus O. Odoko and Okwu J. Nnanna 1.1 Introduction Fiscal federalism has a long history in Nigeria. 3. A much-criticized effect of the current type of federalism, of 36 states from previous pre civil war 3 regions is the creation of a political subclass of state bureaucracies, often headed by governors who are accused of and sometimes successfully prosecuted for, monetary corruption. Therefore, in order for Nigeria to practice True federalism, we need to further strengthen the independence of the people by including a referendum as a method of amending any part of the constitution or even coming up with a new one as well as the independence of the states in various matters as explained by the principles of Fiscal Federalism. Federalism is a factor Nigeria must manage well to promote rapid industrialisation and democratization. Fiscal federalism in Nigeria dates back to 1954 when the country, which had until then been governed as a unitary state by the British, adopted a federal constitution. This is illustrated by the extent to which there are differences of opinion on whether South Africa is an example of a federal state or not, as well as differences of opinion and conviction on whether it should be or become, if it is not yet, a federal state. 8) Corruption, Favouritism, and Nepotism: These are problems of Nigerian federalism. Attah believes that at least 90 percent Nigeria problem will be solved. Nigeria, Pakistan, India and Malaysia (then Federation of Malaya) became federations on or shortly before becoming independent from the British Empire. There are other political systems the country could have adopted but because of some reasons which I am going to share with you today, federalism seemed to be the best idea. Corruption is perhaps the biggest challenge to Nigeria’s development and the integrity of the country’s fiscal monetary system. %PDF-1.6 %�� the federal government and its components (state and local government). What True Federalism Means to Me ; ZUMA’S RESIGNATION AND THE HYPOCRISY OF AFRICANS; What is Freedom? By the time that Nigeria had declared itself a republic and replaced the post of Governor-General with the post of President, a national bicameral parliament was established and the country was considered a federation of the three regions. After the first coup and under the short-lived military government of Aguiyi-Ironsi, Nigeria was reorganized under a central government. Federalism was introduced in Nigeria to forcibly unite the diverse ethnicities and nationalities that were Inter-ethnic rivalry: Nigeria, we all know is made up of diverse group of people with different ethnic groups, and the rivalry among hausa/Fulani, Yoruba and igbo has become a serious issue overtime. Nigeria did not choose federal system of government because it is the best or most practiced system of government in the world. different levels of government (usually how federal or central governments fund state and local governments Fiscal federalism needed for Nigeria to move forward ….. Retreat participants. The study measures fiscal federalism in terms of internally generated revenue of states and allocations to the federal, states and local governments and Nigeria economic development to key development indexes such as per capita income, literacy rate and infant mortality rate. The demand for the creation of newer states in Nigeria tends to emanate from sub-state groups, often ethnic- or tribal-interest groups, which accuse the current larger state governments of subverting or ignoring the interests and necessities of the more local regions. From 1901 to 1958, the number of regions was increased to three through both acquisition of territories and partition from existing provinces. Taxation, Revenue Allocation, and Fiscal Federalism in Nigeria 31 total Nigerian government revenues were collected by the federal government. h�̔Mj�0��27�f��1/��M)�4;�EHD��.��;��.�M�֠��7z�Y ��h�I�B��d�48dQo�O�F'�DSH��k��J˞��켆�F��n�(�x>��a��F�I}T��|�|�|�|�|�|��Z�{ j{x cU-��i� � �)�·��Vh\I�4�e/�c�a��Z�gAX�UMPƂ!E�rV+��v��aj��V�p�ZY��f��;�� n%U[�ir��\�ɔW��H��ǥ�\.כ\�o ��1f�,0�gV�/��.� f� Federalism in Nigeria can be traced to Sir Frederick Lord Lugard , when the Northern and … Problems of federalism in Nigeria . 664 0 obj <>stream �RY��+7��C��*��0/�ݤ��>,�~�F��S��&��2A��,��n�n�Pldӷ 1M�Zh7��|��ە��vʝ��k��Z �$0��I�~0 {�[h Federalism in South Africa is a contested concept and reality. Its allocation of tax and spending authorities, and its system of intergovernmental transfers do not correspond to any economic criteria and provide all sorts of perverse incentives and obstacles for sound economic policies. Revenue Allocation; This is another issue confronting federalism in Nigeria. Fiscal federalism, financial relations between units of governments in a federal government system.Fiscal federalism is part of broader public finance discipline.The term was introduced by the German-born American economist Richard Musgrave in 1959. For the people of the Niger Delta, therefore, resource control is a solution to marginalisation. Government revenue allocation is one aspect of governance that grabs the interests of politicians and citizens of the country. Nigeria also has too much power politically and economically the states have said. Furthermore, an impressionistic view of the impact of the allocation system was presented. Moreover, the social-economic conditions and development in Nigeria, in general, portrays a perplexing . Fiscal federalism can play a role in the process to advance the debate, but it is a small part of the pie in my humble view. The oil-producing states have repeatedly argued that Nigeria’s fiscal federalism, which encourages lopsided distributive politics, has been unfair to them. character of Nigeria’s fiscal federalism with a view to using the system as a yardstick to measure the economic performance of the Nigerian Federation. Under this type, there exist a balkanization of formerly unitary state near disintegration and its diversities which progress to a state. x^�\Ks�6��W�(VEZ�3��l2U��d��6{�FɉGT��/��F��&U[[��$�~|� ��߯�yw��ژU��݇��^嫶m��k�֫꺮V��W�^��ZX��s��]�8��3ŪH ^_D��e�j��4ܵ��7f��Y��x��li��f�>s�ο䋻�Ԟ��8��wl�e��Z�g6��a΢��๻��pP�A[x��4��B�#-��_�BԌ$�e`��g��؀k ��}'��?�"�d8��#O=ʌ��g^XED��~?�J��WU��i��]^]Wm��B��pVy�8f��o��'�� “If the government just accepts the principle of fiscal federalism, the states should control what they have and pay certain percentages to the center. At the beginning of formal British indirect rule in 1901, Nigeria was divided into two regions: Northern and Southern, both of which were divided into provinces. The practice of federalism in Nigeria is one of the legacies the British colonial masters bequeathed to Nigeria. FISCAL FEDERALISM IN NIGERIA Unit 10: Revenue Allocation Unit 11: Restructuring Unit 12: The concept of Corruption 7.0 COURSE OUTLINED PROGRAMME PROPOSAL (OPP) FOR PAD 308 This course is designed to give students a detailed understanding of the Nigerian Government and Politics. This paper therefore discusses corruption and fiscal federalism in Nigeria by conducting an analysis of the federal budgetary process from, 1999-2016. Provided that any revenue formula which has been accepted by an ACT of the National Assembly shall remain in force for a period of not less than five years from the date of commencement of the Act; Such regions were made dependent upon the colonial authorities for martial law, manpower and management of resources. Therefore, the problem with federalism in Nigeria is the mix-application or non-application of this clause especially as it has to do with power distribution (Awa, 1977). Following the counter-coup which resulted in Aguiyi-Ironsi's deposition and assassination, Nigeria was reorganized as a federal country, with three of the regions being divided into newer entities and all first-level subdivisions being renamed as states: Mid-Western and the states of former Eastern Region made a bid to secede from Nigeria as the states of Biafra and Republic of Benin, resulting in the Nigerian Civil War. Federalism is indispensable to rapid democratization in a multi-ethnic society. fiscal federalism and Nigeria’s development. 1. ere, this multiple unit H system includes the federal government, States government and local governments. Fiscal federalism deals with the division of governmental functions and financial relations among levels of government. fiscal federalism and Nigeria’s development. Problems of federalism in Nigeria . The Mid-Western Region was formed from the Western Region in 1966, and Lagos, the capital, was effectively governed as an unofficial fourth region outside the bounds of the Western Region. Fiscal federalism in Nigeria 23 The legal framework 23 Primary areas of controversy in Nigeria surrounding federalist relations 26 Nigerian-Style Federalism: Advantages and Challenges for Economic Development 28 Advantages of the Nigerian system of fiscal federalist relations relative to common alternative arrangements. As a subfield of public economics, fiscal 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, 1999). federalism. Good Leaders or Freedom? The important methods adopted to achieve vertical fiscal equality between the centre and regional governments in a … The debate on Nigeria's fiscal federalism and relations hinges on the fundamental question of who gets what of the national cake, when and how. Fiscal Federalism is a political-economic arrangement whereby the public revenue of a federation is shared among the various levels of government (Okeke & Eme, 2013). Furthermore, one of the outstanding peculiarities of Nigerian politics emanates from the promulgation of sharia law in the northern states, which is only applicable to Muslim residents, while Nigerian states outside the "sharia zone" operate their legal systems by common and customary law. We evaluated the implementation of the allocation formula in the Revenue Act of 1981. Federalism, mode of political organization that unites separate states or other polities within an overarching political system in a way that allows each to maintain its own integrity. Attah said that if government accepted fiscal federalism, most of Nigeria’s problems would be solved. Attah said that if government accepted fiscal federalism, most of Nigeria’s problems would be solved. Finally, the study shall be concluded with alternatives for remediation/policy options. Restructuring Nigeria into a True Fiscal Federalism requires a constitutional amendment, if not an entirely new constitution. Those who steal Nigeria’s money are not the cabals, you and I are (audio). The term fiscal federalism is entrenched in a political setting called federalism. discourse on federalism has emerged in this country. Again, the part which relates to the regional context of Africa may help to conceive and understand both the strength and limitations of the Ethiopian federal system in the wider regional context. Nigeria therefore falls into the latter because of the wide diversities. 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. The debate on Nigeria's fiscal federalism and relations hinges on the fundamental question of who gets what of the national cake, when and how. �]��X��ߦ��;�!h�g��4J��e�2?��qA2/�|L$�:��ܽd��p��.A�=$:��'�)4BB��*�r��m �i f[bY�_�﫰B-';��}]�˸�C5n�W>>p��Y�U~IE��FMJ 7�EZh��/��9S�"��PK7[=�� W��}�n��G��n�&�~N�[䅝% �9A��n9��Id�b��E��L-�le��i�� Zԅ/� ��2�[�Yt�ʇ�d�q�4� ��kC{�sܕQ��y�X{/[��n�q�YKO�~��2N��U� (��P�L� -j�nl�`4R�o᝺�%?� � s��=�֊�t��ƖZ�I��~�h��b�C�5�o�5��}��#9��#� :DmF��d�m��YU��n�|�". BY CÉLINE AUCLAIR Federalism: its principles, flexibility and limitations People often contrast “federal systems” with “unitary political systems” – systems with only one source of central authority. Fiscal Federalism in Argentina: Policies, Politics, and Institutional Reform* The workings of fiscal federalism is an important concern in Latin American policy circles. On November 27, 2009 3:33 am In Law & Human Rights by akintayo eribake. Power sharing among the component units poses a problem to Nigerian federalism because it is not always properly defined. This is fundamental given that Nigeria as a monolithic economy gets over 80% of its revenue from crude oil, by virtue of the constitutional provision, this revenue must be disbursed to the three tiers of government. The existence or otherwise of a federal constitution is not a consideration, and the principles of fiscal federalism apply to both unitary and federal countries2. Taxation, Revenue Allocation, and Fiscal Federalism in Nigeria 31 total Nigerian government revenues were collected by the federal government. Federalism in Nigeria can be traced to Sir Frederick Lord Lugard , when the Northern and Southern protectorates were amalgamated in 1914. 9) Acceptable Census Figures: For some time, in the affairs of the country, there has been the problem of conducting reliable and acceptable censuses. A number of analysts have taken this position in their assessment of Nigeria’s fiscal federalism. Attah said that if the government accepts fiscal federalism, most of Nigeria’s problems would be solved. Fiscal federalism gave birth to Nigeria as a nation. In our previous post on the major sources of government revenue and government expenditures, we’ve talked about how the Federal government derives its revenue from different sources.. It is also defined as the system of government in which governmental powers are shared between the component units and the central government, i.e. 29 The importance of cooperation between the Federal and State … Nigeria's military gave us a … Benue-Plateau state divided into Benue (Makurdi) and Plateau states; East-Central state divided into Anambra and Imo (Owerri) states; Federal Capital Territory (Abuja) formed from parts of Niger and Plateau states; North-Eastern state divided into Bauchi (Bauchi), Borno, and Gongola (Yola) states; Western state divided into Ogun (Abeokuta), Ondo (Akure), and Oyo states, This page was last edited on 18 January 2021, at 13:06. Methodology “If the government just accepts the principle of fiscal federalism, the states should control what they have and pay certain percentages to the center. Fiscal federalism is an area of study in public economics that focuses on the allocation of fiscal rights and responsibilities across different levels of government. This means autonomous states or regions come together to form a larger […] Fiscal federalism tries to bridge this gap and attain a balance through vertical co-ordinations between the centre, state and local level public expenditure and resources needed to finance them. A large body of literature exists on Nigeria’s fiscal federalism particularly with reference to revenue allocation. Despite the profound and lengthy discussions that have taken place on the subject for about four and half decades, consensus has not been reached concerning the optimal formula to adopt to achieve desired economic development ( Aboyade, 1985 ; Buhari, 2001 ). In some recent cases, federations have been instituted as a measure to handle ethnic conflict within a state, such as Bosnia and Herzegovina, and Iraq since 2005. G��=J��o.i�Y��]Y�Um�15{�Z�ܐ�G�i`��\�C��0�O��?�ԃi)�'��I�z+|�rh��J(p5�wG�u(Y�T��o��g,��>uV&��T_�ye۬��/��G�G�c"/�sH�K�` ��RT�'E�4;��E��٧l Also, to take away many of the powers … �@��B��~Ȗng�0��g&o�,@3��hVy*�l�ʬlB��YP��w6Ŧj}6WֺU�٪|c�+F!l{t�:�v�A�A�^�|q=,Ї��mh!�̔�5��)Y��Ô��(ݪf�~��l:�&4�~6 Wi��Q_J��.3-=��G i��h�v�Wk4;:_��56��\!\[�|"�B�6��Q��h��r6�62�>��J��=%�5�=��޿+}��w�z�x��2�L *��f��H��{ Buchan Fiscal Residuum Theory was used to explain and analyze issues that relate to federalism, fiscal federalism and the challenges therein. However, the practice of fiscal federalism in Nigeria is a negation of true federalism. Unfortunately, since the formation of Nigeria and adoption of this system of governance in the country has not seen much effect of federalism. hޤ��j� �W9�#c�J��V��hRz1vaI��5��l�� :܍(z�?��A3�$A�p�b�@��8��$��|�2ae�i��U{�Ѓ��Z��^h�.�\�a DcŽ��Q'��C�=��RT�{w>IT�^��f\��B2��wC��Ү��; FISCAL FEDERALISM pendence revenue allocation commissions during l99 to explain the evolution of fiscal federalism within the economy. Inter-ethnic rivalry: Nigeria, we all know is made up of diverse group of people with different ethnic groups, and the rivalry among hausa/Fulani, Yoruba and igbo has become a serious issue overtime. Since independence in 1960, corruption has been a destabilizing factor in the country’s progress. Podcast - Nigeria Freedom Radio; Let’s Make NYSC Voluntary; My Parents’ Generation Made A Mistake. rian federalism was created and nurtured under the influence of dictatorship and autocratic government. Unlike a fiscal system with a single level of government only, we must now allow for the fact that fiscal operations are typically carried out by many units of government or jurisdictions. Buchan Fiscal Residuum Theory was used to explain and analyze issues that relate to federalism, fiscal federalism and the challenges therein. The practice of federalism in Nigeria is one of the legacies the British colonial masters bequeathed to Nigeria. Finally, the study shall be concluded with alternatives for remediation/policy options. Western Region was divided into Lagos (Lagos) and Western (Ibadan) states. Federalism is a factor Nigeria must manage well to promote rapid industrialisation and democratization. Eastern Region was divided into East-Central (Enugu), Rivers (Port Harcourt), and South-Eastern (Calabar) states; Northern Region was divided into Benue-Plateau (Jos), Kano (Kano), Kwara (Ilorin), North-Central (Kaduna), North-Eastern (Maiduguri), and North-Western (Sokoto) states. Thus, from 1914 to 1946, 1963, 1967, 1976, 1987 and 1993 the Nigerian federation experienced a great deal of splits. In Nigeria’s history of federalism about nine fiscal commissions had been established tostudy or review system of revenue allocation and among the units of the federation from pre-independence to date. Federalism is a system of government in which governmental powers that exists in a country are shared between central government and component region. Bernard Bourdillon the Governor-general at that time initiated and laid the foundation of federalism in Nigeria in 1939 by creating three provinces. It dates back to 1946, when the Richards Constitution was introduced. Fiscal federalism is characterized by fiscal relations between central and lower levels of government. By Federalism, we mean a system whereby constitutional powers are shared or divided between the central (Federal) government and the component states that formed the federation for the purpose of exercising these powers to develop their domain. Argentine fiscal federalism is considered to be very inefficient by all specialists. Fiscal federalism, however, represents the polar case where federal fiscal arrangements are decided purely on economic principles. In addition, for all its oil-fuelled corruption and dysfunction, Nigeria’s fiscal federalism grants substantial expenditure discretion to the states, provides a stable and predictable system of intergovernmental fiscal transfers and, given the absence of a “natural instrument” for the Federal Government “to bail out poorly performing states,” establishes some degree of hard budget constraints for subnational … He later handed over the constitution to his successor Arthur Richards and it became the Richards Constitution of 1946. endstream endobj 665 0 obj <>stream Federalism as a system of government which is meant to help to advance good governance and development of a multi-ethnic and big country like Nigeria. Neither the relative importance of the legislative entries in Schedule VII, Lists I and II of the Constitution, nor the fiscal control by the Union per se is decisive to conclude the Constitution is unitary. This is not unexpected as the federal government is solely responsible for the collection of mining rights and royalties, petroleum profit tax (Nigeria’s major This is specifically why I have deemed it appropriate to write to the Senate, rather than to the president. This is not unexpected as the federal government is solely responsible for the collection of mining rights and royalties, petroleum profit tax (Nigeria’s major revenue source) and share VAT collection with state government.