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| Title: | A comparative study of states' fiscal dependency and imbalance in Nigeria |
| Author: | Akpan, Godwin E. |
| Year: | 1999 |
| Periodical: | The Nigerian Journal of Economic and Social Studies |
| Volume: | 41 |
| Issue: | 2 |
| Pages: | 207-226 |
| Language: | English |
| Geographic term: | Nigeria |
| Subjects: | regional development revenue allocation |
| Abstract: | This paper examines the duality in economic development that exists among Nigerian states, using intergovernmental fiscal relations. There is a serious problem of mutual dependency existing between the federal and state governments. The federal government is the primary dependant in the fiscal relationship since it depends on state resources for its revenue. The dependence of the federal government on the fiscal resources of the states weakens the fiscal base of some states, thus inducing a secondary dependency in those states on federal revenue. The scale of fiscal dependency varies between states and between clusters of states demonstrating the existence of an imbalance. Nevertheless, most of the states across the country depend on federal statutory revenue for their fiscal financing. An uneven distribution of advantageous development factors and the early use of such factors by some states have nurtured this imbalance. The lack of incentive for internal revenue generation within the states, the availability of oil revenue, and the rapid proliferation of states and military command governments are some of the factors which have deepened the levels of dependencies of states and imbalance. The solution lies in minimizing or eliminating factors that have caused this imbalance; the states should promote private investment through the provision of basic infrastructures and other incentives. Bibliogr., sum. [Journal abstract, edited] |