Political Decentralisation and Natural Resource Governance in Nigeria

The paper discusses Natural Resource Control and how it is affected by governance in Nigeria with focus on two oil-producing states. It also examines sub-national accountability in the use of natural resource revenues.

Background

  • Nigeria is a federal country with a tripartite administrative structure – national govt. + 36 states + 774 local governments, each of which has constitutionally defined functions
  • Since 1999, political decentralisation has given subnational governments greater autonomy over their fiscal affairs
  • Low public accountability – very little is known about how subnational governments are using their oil revenues.
  • In the resource-rich Niger Delta, this contradiction between power and unaccountability is most extreme
  • Oil producing states receive 13% monthly oil revenue ‘derivation’ payments for territorial oil production, in addition to constitutionally entitled revenues
  • This has quadrupled the size of state budgets and expenditures

Problem:

  • Academic and policy scholarship tends to focus more on centralised than decentralised political corruption in Nigeria
  • Poverty and corruption cannot be addressed without improved sub-national accountability in the use of natural resource revenues


#
#