INTER-GOVERNMENTAL FISCAL RELATIONS AND ISSUES OF ECONOMIC DEVELOPMENT IN NIGERIA: THE WAY FORWARD
Sani Alfred Ilemona and Nweze Augustine U
Volume 1 Issue 1
Abstract
The paper examined the fiscal arrangement among the federating units in Nigeria in terms of how the common resources are shared and the impact of the share resources/revenue on the economic development in the Country. The study is a theoretical review of existing literature related to the subject matter. Evidence from studies suggested that shared revenue/public funds have not impacted positively in terms of addressing development challenges in the Country. it was also discovered that over reliance on oil revenue (mono-economy) to the neglect of exploration of other viable revenue yielding sources is largely responsible for myriad of financial challenges of the Country and inability to cope with issues of the economic development in the society. The study concludes with the recommendation to change the model of intergovernmental fiscal relations in Nigeria from the practice of depending majorly on the oil revenue of the federation account (federal allocation) to diversify the economy. Diversification will open up all the units of the federation to many revenue yielding activities that will have meaningful impact on the economic development in the Country. Keyword: Fiscal Relations, Federating Units, Economic Development, Financial Challenges Diversifying Economy.
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