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.

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

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 17)

Gross Federally Collected Revenue

Gross Federally Collected Revenue: Both oil and non-oil components of gross federal revenue fell below N40 billion in 2016, after recording a peak of N90 billion in 2013. The decline was most prominen

Nigeria Economic Update (Issue 26)

Power sector statistics indicates a huge decline in power generated in the week under review (June 23, 2017 to June 30, 2017). Power generated, attained a peak of 4,305 MW on June 23, 2017 but fell significantly by 33.1 percent to approximately average of 3,000 MW as at June 30, 2017. The huge decline is attributable to continued poor payment and inability of most GENCOs to pay for gas supply and a system collapse. Consequently, power sector lost huge prospective funds; and daily power supply reduced to 4.5 hours per day7. Going forward, improvement in energy supply is critical to domestic production, job creation, and diversification agenda of the government.

Implementing The Fiscal Responsibility Act At The State Level In Nigeria

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.