Publications

December 10, 2010

Implementing The Fiscal Responsibility Act At The State Level In Nigeria

Fiscal responsibility acts have become increasingly common tools to enhance fiscal prudence and public expenditure transparency in many countries. In Nigeria, fiscal profligacy at the sub-national level has emerged as a major contributor to state corruption and macroeconomic instability.

Download Label
March 13, 2018 - 4:00 am
application/pdf
1.14 MB
v.1.7 (stable)
Read →

Author:Vanessa Ushie

Publication Date: October 2010

Document Size: 37 pages


While the federal government has enacted the Fiscal Responsibility Act (2007), the major challenge is reconciling the economic rationale for fiscal responsibility with the political demands of fiscal federalism. Although several states have recently ratified the FRA, this has not been matched with concrete policy reforms that enhance fiscal discipline and public expenditure transparency. Likewise, the federal government has been unable to persuade state governments to rein in public spending and centrally co-ordinate macroeconomic policies, contrary to the provisions of the national FRA. The paper explores the policy framework for implementing the FRA across the 36 states, and identifies the underlying macroeconomic principles required for the FRA to be effective at the state level, and the political economy challenges facing the states in entrenching fiscal discipline in Nigeria.




Related

 

Nigeria Economic Update (Issue 22)

Power sector analysis shows a decline in power generated by 15.07 percent from a peak of 3,424 mw to 2,908 mw between May 8, 2016 and May 15, 20169. The declining power supply is attributable to vandalism of pipelines and gas shortages, which has a debilitating effect on power generation. As part of the efforts by the Federal Government to improve power supply in the country, the Bank of Industry (BoI) is currently funding intervention projects to provide alternative source of energy (solar) in rural areas across the country10. Since the major problem facing power generation in the country is gas shortages, the government should make concerted efforts to combat vandalism.

The Budget, Fiscal Policy And Service Delivery

The paper discusses the Macroeconomic impact of budget and its process and how to achieve an efficient and timely budget cycle.