Federalism and Money: An Examination of the Taxation Powers in the Federal Systems of Nigeria and Canada

Abstract

A federal system represents a balance of power between the central and regional governments, especially in multi-ethnic societies. This articles relies on a historical institutional framework in order to examine the differences in the federal systems of Nigeria and Canada with regard to subnational independence and distribution of taxing powers between the levels of government in the federations. It highlights the historical formation of both federal systems and how their respective backgrounds have shaped and influenced the allocation of powers and tax authority. The analysis indicates that the federal system of Nigeria is over-centralised and thus does not meet the standards of true federalism.