Publication:
Nigeria : State Finances Study

dc.contributor.authorWorld Bank
dc.date.accessioned2013-07-30T21:32:16Z
dc.date.available2013-07-30T21:32:16Z
dc.date.issued2003-04
dc.description.abstractFiscal management and broader macroeconomic policy is complicated when government financing is highly dependent on natural resource revenues and therefore susceptible to wide fluctuations. This challenge is compounded further in a context of fiscal federalism, particularly when sub national governments have considerable autonomy over their spending, constitute a significant share of consolidated government financing and lack a tradition of strong fiscal discipline. Nigeria happens to be in this situation: government is highly dependent on oil revenues and inappropriate management of the oil revenue cycle has historically been at the heart of macroeconomic instability in the country. In recent years, Nigeria's new fiscal federalism context and the increased autonomy of states, has added additional challenges to the conduct of fiscal and macroeconomic policy. Nigeria is a federation with power and responsibilities shared between the Federal Government and thirty-six constituent state governments' Local governments are constitutionally recognized but are subject to the creation, control and regulation of State governments. As in similar federal structures, the power and ability of state governments to manage their public expenditure depend largely on the fiscal federalism arrangements in place. It is necessary therefore to begin this report on States Finances by examining how fiscal powers and responsibilities are shared between the various levels of government and what mechanisms are in place for securing synergy and avoiding dysfunction(Chapter 1). This chapter describes the nature of the Nigerian federation. This is followed by a discussion of revenue assignments for funding the various levels of government. This will be closely tied with the arrangements for sharing common revenues, a very important feature of Nigeria's fiscal federalism. Section D discusses expenditure assignments. The concluding section of Chapter 1 briefly discusses key implications of the April 2002 Supreme Court ruling on certain aspects of Fiscal Federalism in Nigeria. Chapter 2 reviews the states' finances from 1997 through 2001. This chapter concludes that In the medium term, states' will need to vigorously address the structural constraints to their improved fiscal Performance. This will require specific actions to: (i) build a tradition of strong fiscal discipline; (ii) reduce and manage states' vulnerability to o i l price swings; (iii) reduce the share of inflexible commitments in states' expenditure profiles; (iv) promote prudent borrowing and debt; and (v) strengthen budget processes and institutions to support fiscal discipline and expenditure efficiency and effectiveness. The discussion in Chapters 3 and 4 lay out some concrete proposals for the consideration of state and federal governments. More specifically, Chapter 3 discusses aspects of current fiscal federalism arrangements including arrangements for borrowing that might encourage imprudent or fiscally irresponsible behavior by Nigerian states. It also examines mechanisms that could be used to harden budget constraints and promote the fiscal discipline needed for overall macroeconomic stability and for efficient use of states' public resources. Actions will be needed at both state and federal government levels, with the latter playing a lead role, including through demonstrating a credible commitment to fiscal discipline. Finally, Chapter 4 reviews budget and financial management practices in Nigerian states, identifies areas of weaknesses and proposes key elements of these process and institutional reforms.en
dc.identifierhttp://documents.worldbank.org/curated/en/2003/04/2863070/nigeria-state-finances-study-nigeria-states-finances-study
dc.identifier.doi10.1596/14671
dc.identifier.urihttps://hdl.handle.net/10986/14671
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTABILITY
dc.subjectACCOUNTING
dc.subjectAUTHORITY
dc.subjectBASIC EDUCATION
dc.subjectBORROWING
dc.subjectBORROWING RULES
dc.subjectBUDGET SYSTEMS
dc.subjectCONSTITUTION
dc.subjectCOUNCILS
dc.subjectDEBT
dc.subjectDEBT MANAGEMENT
dc.subjectDEBT SERVICE
dc.subjectDECENTRALIZATION
dc.subjectDEFICITS
dc.subjectDEMOCRATIC GOVERNANCE
dc.subjectDICTATORSHIP
dc.subjectDOMESTIC BORROWING
dc.subjectEXPENDITURE
dc.subjectEXPENDITURE RESPONSIBILITIES
dc.subjectFEDERAL
dc.subjectFEDERAL GOVERNMENT
dc.subjectFEDERALISM
dc.subjectFEDERATIONS
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFINANCIAL MARKETS
dc.subjectFISCAL
dc.subjectFISCAL BALANCE
dc.subjectFISCAL CRISES
dc.subjectFISCAL DECENTRALIZATION
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL FEDERALISM
dc.subjectFISCAL MANAGEMENT
dc.subjectFISCAL PERFORMANCE
dc.subjectFISCAL POLICY
dc.subjectGOVERNMENT LEVEL
dc.subjectGOVERNMENT LEVELS
dc.subjectGOVERNMENT OFFICIALS
dc.subjectGOVERNMENT REVENUES
dc.subjectGOVERNMENT SPENDING
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectHARD BUDGET CONSTRAINTS
dc.subjectINCOME
dc.subjectINFLATION
dc.subjectINSTITUTIONAL REFORMS
dc.subjectINTERGOVERNMENTAL FISCAL RELATIONS
dc.subjectINTERGOVERNMENTAL TRANSFERS
dc.subjectLEGISLATURE
dc.subjectLEVELS OF GOVERNMENT
dc.subjectLOCAL GOVERNMENT
dc.subjectLOCAL GOVERNMENT REVENUES
dc.subjectLOCAL GOVERNMENTS
dc.subjectMACROECONOMIC STABILITY
dc.subjectNATIONAL GOVERNMENTS
dc.subjectNATIONAL PLANNING
dc.subjectPROVISIONS
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC EXPENDITURE ANALYSIS
dc.subjectPUBLIC EXPENDITURE MANAGEMENT
dc.subjectPUBLIC EXPENDITURE REVIEW
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FINANCES
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SERVANTS
dc.subjectPUBLIC SERVICE
dc.subjectPUBLIC SPENDING
dc.subjectREVENUE GROWTH
dc.subjectREVENUE SHARING
dc.subjectREVENUE SOURCES
dc.subjectROADS
dc.subjectSOFT BUDGET CONSTRAINTS
dc.subjectSTATE BUDGET
dc.subjectSTATE GOVERNMENT
dc.subjectSTATE GOVERNMENTS
dc.subjectSTATE OFFICIALS
dc.subjectSTATES
dc.subjectTAX
dc.subjectTAX ADMINISTRATION
dc.subjectTOTAL EXPENDITURES
dc.subjectTRANSPARENCY FISCAL FEDERALISM
dc.subjectFISCAL SUSTAINABILITY
dc.subjectINTERGOVERNMENTAL FISCAL RELATIONS
dc.subjectINTERGOVERNMENTAL TAX RELATIONS
dc.subjectINTERGOVERNMENTAL TRANSFER OF FUNDS
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFISCAL EFFICIENCY
dc.subjectFISCAL REFORMS
dc.subjectLOCAL GOVERNMENT BUDGETS
dc.subjectLOCAL GOVERNMENT EXPENDITURES
dc.subjectBORROWING ARRANGEMENTS
dc.subjectREVENUE SHARING
dc.subjectAUTONOMY
dc.subjectCOST CONTROL
dc.subjectINSTITUTIONAL ARRANGEMENTS
dc.subjectBUDGET PREPARATION
dc.subjectBUDGET IMPLEMENTATION
dc.subjectBUDGET REFORM
dc.subjectPROCUREMENT
dc.subjectMODERNIZATION
dc.titleNigeria : State Finances Studyen
dspace.entity.typePublication
okr.date.doiregistration2025-05-07T08:48:51.215817Z
okr.doctypeEconomic & Sector Work::General Economy, Macroeconomics and Growth Study
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/2003/04/2863070/nigeria-state-finances-study-nigeria-states-finances-study
okr.globalpracticeSocial, Urban, Rural and Resilience
okr.globalpracticeGovernance
okr.globalpracticeGovernance
okr.guid433941468776705944
okr.identifier.externaldocumentum000160016_20040122122738
okr.identifier.internaldocumentum2863070
okr.identifier.report25710
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/01/22/000160016_20040122122738/Rendered/PDF/257100UNI.pdfen
okr.region.administrativeAfrica
okr.region.countryNigeria
okr.sectorPublic Administration, Law, and Justice :: Sub-national government administration
okr.topicUrban Development::Urban Governance and Management
okr.topicGovernance::Regional Governance
okr.topicGovernance::National Governance
okr.topicPublic Sector Management and Reform
okr.topicPublic Sector Economics and Finance
okr.unitAFT: PREM 3 (AFTP3)
okr.volume1 of 1
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