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Fiscal Allocation and Intergovernmental Relations in the Nigeria’s Fourth Republic

Omoniyi V. AJULOR

,

Busayo Q. IBIKUNLE

Omoniyi V. AJULOR 1 ,

Busayo Q. IBIKUNLE 1 
  1. Department of Public Administration, Faculty of Management Sciences, Lagos State University, Ojo Lagos, Nigeria. 1

Pages: 10-20

DOI: 10.18488/journal.74.2021.81.10.20

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Article History:

Received: 23 December, 2020
Revised: 05 March, 2021
Accepted: 07 April, 2021
Published: 27 April, 2021


Abstract:

This study examined the effect of fiscal allocation on intergovernmental relations in Nigeria's fourth republic. Sharing of accrued revenue among the tiers of government is not new in many countries of the world, especially those practising federalism as a system of government. The issue of fiscal allocation has posed major concern that affects political, economic and social relations among the levels of government. The share of the revenue from the sale of crude oil in Nigeria has caused unending conflicts among the tiers of government. In discussing the issues under consideration, this paper adopts an exploratory method of analysis with materials source from journals, articles, books, internet, etc. empirical data also made use where appropriate. The findings of this paper revealed that the formula for sharing revenue in Nigeria cannot address problems of fiscal federalism and intergovernmental relations among the three tiers of governments. This paper, therefore, suggests among others, that there should be constitutional amendments, which will give the component units sovereign to utilize their resources discretionally without the interference of the centre.
Contribution/ Originality
The paper's primary contributions from the finding are that states and local governments should have a certain level of control on their resources and improve the internally generated revenue. Centralized fiscal federalism should be modified through constitutional means. Fiscal decentralization and financial autonomy should be encouraged where tiers of government in Nigeria will have sovereignty over resources in their domain without interferences.

Keywords:

Federalism, Fiscal Allocation, Fourth republic, Intergovernmental relations, RMAFC, Sharing formula.

Reference:

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Funding:

This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.

Acknowledgement:

Both authors contributed equally to the conception and design of the study.

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