Bi-weekly Seminars

August 26, 2013

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.

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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




Related

 

Nigeria Economic Update (Issue 43)

Crude oil prices have sustained upward increases for the past few weeks in October. While upward trajectory of crude oil prices is expected to be sustained in the short term in line with OPECs production cuts deal expected to run until March 2018, it is important to note that crude oil prices would remain volatile. The Nigerian government therefore should take advantage of periods of high revenue from crude oil exports to develop other sectors (such as Agriculture, Manufacturing and Services sectors) of the economy as key exporting and revenue generation sectors, and thus minimize volatility risks

Nigeria Economic Update (Issue 41)

The naira continued its downward trajectory in the review week. Specifically, naira depreciated significantly at the parallel segment by 3.5 percent to a record low of N440/$ on September 23, 2016. Notably, this was driven by the worsening liquidity constraints at the interbank market which left the excess forex demand to be sourced at the parallel market, and thus exerted downward pressure on the naira. The naira is likely to further weaken given that most of the liquidity constraints are exogenously determined and thus forex supply will likely remain subdued by its demand.

Africa Economic Update (Issue 6)

Available data shows that headline inflation reduced in most countries in the region in May 2017 relative to preceding months. Notably, headline inflation decreased in Nigeria (16.25 percent), Ghana (12.26 percent), Tanzania (6.1 percent), Senegal (1.8 percent), Namibia (6.3 percent) and Rwanda (11.7 percent), while it grew in South Africa (5.4 percent), Kenya (11.7 percent), Ethiopia (8.7 percent) and Uganda (7.2 percent). Cote dIvoire (-0.4 percent) recorded consumer price deflation. The decrease in consumer price in Nigeria, Tanzania and Ghana can be attributed to decreases in both food and non-food components of inflation. Regionally, all countries in Southern Africa recorded single digits inflation, however consumer price marginally increased in South Africa, for the first time in 2017 owing to spike in food prices6, and Botswana (both by 0.1 percent).