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The Subnational Political Resource Curse: Allocations, Internally Generated Revenue and Spending Priorities in Nigeria

Nigeria’s Economic Recovery and Growth Plan (ERGP) is a policy document that details the country’s plan to implement sustainable growth over the medium term. It notes that Nigeria will seek to increase public investment, diversify economic outputs and reduce fiscal reliance on oil moving forward.4 But as the ECA fiasco shows, state-center relations will influence the success of the reform program. The ability of state governments to successfully contest decisions made at the center indicates that state-center relations are bilateral-this is important for any federation. However, it also poses some less optimistic questions about state-society relations: If devolution of power incentivizes subnational officials to better respond to their constituents (Faguet, 2012), why did it take an oil price crash for said constituents to find about their governors’ clamor for ECA

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