FISCAL FEDERALISM AND NATION BUILDING IN NIGERIA

CHALLENGES AND PROSPECTS

Abstract

The need to spread development, and advance the general welfare of the citizenry, plays a significant role in the evolution and practice of federal system of government (federalism). In Nigeria’s case, the problem of inter-fiscal relations has always raised severe challenges. The problem was provoked by a number of factors including over dependence on statutory allocations from the centre; and lopsided federal system; that both the colonialists (Britain) and subsequent governments including the repressive military system fostered. The current democratic dispensation has also not done much to depart from the old order. This situation is worsened today by challenges of wide spread corruption, escalating poverty, ethnic politics, diseases, ignorance, electoral violence and rigging. There are also agitations for resources control, and power shift. This paper canvasses the view that for proper fiscal federalism to emerge in Nigeria, there is an urgent need to decentralize the resource base of government, encourage entrepreneurial spirit, freedom of information, and ensure equitable allocation of resources to all tiers of government to match their responsibilities.