Fiscal Allocation and Intergovernmental Relations in the Nigeria’s Fourth Republic

Abstract

This study examined the effect of fiscal allocation on intergovernmental relations in Nigeria's fourth republic. Sharing of accrued revenue among the tiers of government is not new in many countries of the world, especially those practising federalism as a system of government. The issue of fiscal allocation has posed major concern that affects political, economic and social relations among the levels of government. The share of the revenue from the sale of crude oil in Nigeria has caused unending conflicts among the tiers of government. In discussing the issues under consideration, this paper adopts an exploratory method of analysis with materials source from journals, articles, books, internet, etc. empirical data also made use where appropriate. The findings of this paper revealed that the formula for sharing revenue in Nigeria cannot address problems of fiscal federalism and intergovernmental relations among the three tiers of governments. This paper, therefore, suggests among others, that there should be constitutional amendments, which will give the component units sovereign to utilize their resources discretionally without the interference of the centre.