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

Oil wealth comes with a caveat-depend on it excessively and be buffeted by oil market volatility. The 2014 oil price crash revealed that Nigeria did not heed this warning. The country’s expenditure forecasts are based on an assumed oil price so that the government was caught flatfooted when the crash began around June. Under duress, public officials eventually revealed how financially irresponsible governance was during the years of plenty: after a tussle with the President, State Governors shared oil profits stowed in a “rainy day” account called the Excess Crude Account (ECA) amongst themselves; they allegedly also hindered the growth of the country’s Sovereign Wealth Fund. It does not seem like those hard-won funds were spent in the public’s interest-reports detailing several state governments’ inability to fund public investments and pay public servants’ salaries have continued to arise into 2018.

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