Fiscal Federalism in Nigeria : The Confusion and Realities

Abstract

This study evaluated fiscal federalism in Nigeria with a view to identifying the areas of problems. Survey research method was adopted. Data collected through questionnaire were analyzed using Z-test. The findings revealed that the recommendations proffered by the commissions set up by government in respect to fiscal federalism did not make much impact on the economy due to some factors like: imperfection in the 1999 constitution, furthermore there are many problems inherent in fiscal federalism which has led to duplication of government functions and waste of public fund. However, in order to ensure an efficient and sound fiscal federalism in Nigeria, it is recommended among others that the Nigerian fiscal responsibility bill, due process should be adhered to by public officers. More so efforts should be made to ensure that all tiers of government adhere to fiscal transparency, accountability and constitutional provisions on fiscal relations. It is also recommended that National Fiscal Commission is established to enhance inter-governmental understanding and cooperation in ways conducive to dialogue between federal, state and local government actors.