The political economy of state creation and Nigerian development under fiscal unitarism

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Periodical article

Title:	The political economy of state creation and Nigerian development under fiscal unitarism
Authors:	Uga, Edu O. Aminu, Alarudeen
Year:	2000
Periodical:	The Nigerian Journal of Economic and Social Studies
Volume:	42
Issue:	3
Pages:	313-351
Language:	English
Geographic term:	Nigeria
Subjects:	national budget federalism revenue allocation
Abstract:	Intergovernmental fiscal relations in Nigeria border on 'fiscal unitarism', contrary to the convention of 'fiscal federalism', and despite the apparent federal structure. The paper traces the general arguments for and the political origins of state creation in Nigeria and the trends which led to the 36-state structure in 1996. The paper questions the capacity of Nigerian states to promote and finance development, as only two states were able to finance 50 percent of their operations from internal resources, others were generally below 15 percent. Recurrent expenditure constitutes an average of 70 percent of state expenditure, and was as high as 98 percent for some states in some years. The paper concludes that state creation cannot foster development unless there is a restructuring of the political and fiscal systems. Bibliogr., notes, ref., sum. [Journal abstract]