The intergovernmental fiscal relations in Nigeria

Ing. Chinedu Jeremiah Chukwuma

Master's thesis

Abstract:

The purpose of this thesis is to explore the intricacies of the intergovernmental fiscal relations (IGFR) in Nigeria, analyzing the mechanisms, and impact of federal-state financial transfers on state-level development. Anchored in the principles of fiscal federalism, the study examines the disparities in fiscal capacity and developmental outcomes across Nigerian states, with Lagos State, the nation's economic hub, and Yobe State, which faces significant developmental challenges, serving as comparative case studies. The research adopts a mixed-methods approach, integrating literature-based analysis and quantitative methods. The literature component involves a review of fiscal federalism literature, while the quantitative part employs descriptive statistics and econometric panel regression analysis. Secondary data on government allocations are analyzed to identify patterns and trends. The findings highlighted significant challenges within Nigeria’s IGFR system and the need for policy reforms to address these issues, especially in governance bottlenecks, revenue mismanagement, and inequitable resource distribution. Actionable policy recommendations were offered aiming at improving equity and efficiency, thereby providing valuable guidance for policymakers and public administration professionals striving to refine Nigeria’s IGFR system for sustainable and inclusive development.

Keywords

Inter-Governmental Fiscal Relations, Fiscal Federalism, Intergovernmental Fiscal Transfers, Internally Generated Revenue

Language used: English

Date on which the thesis was submitted / produced: 7. 1. 2025

Thesis defence

• Date of defence: 29. 1. 2025
• Supervisor: Ing. Eduard Bakoš, Ph.D.
• Reader: PhD Dinara Alpysbayeva

Masaryk University

Faculty of Economics and Administration

Master programme / field:
Public Finance and Economics / Public Finance and Economics