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