Nigeria : State Finances Study

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collection.link.87
https://openknowledge.worldbank.org/handle/10986/2195
collection.name.87
General Economy, Macroeconomics, and Growth Study
dc.contributor.author
World Bank
dc.date.accessioned
2013-07-30T21:32:16Z
dc.date.available
2013-07-30T21:32:16Z
dc.date.issued
2003-04
dc.date.lastModified
2017-12-13T12:36:11Z
dc.description.abstract
Fiscal 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.identifier
http://documents.worldbank.org/curated/en/2003/04/2863070/nigeria-state-finances-study-nigeria-states-finances-study
dc.identifier.uri
http://hdl.handle.net/10986/14671
dc.language
English
dc.language.iso
en_US
dc.publisher
Washington, DC
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ACCOUNTABILITY
dc.subject
ACCOUNTING
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AUTHORITY
dc.subject
BASIC EDUCATION
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BORROWING
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BORROWING RULES
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BUDGET SYSTEMS
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CONSTITUTION
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COUNCILS
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DEBT
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DEBT MANAGEMENT
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DEBT SERVICE
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DECENTRALIZATION
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DEFICITS
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DEMOCRATIC GOVERNANCE
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DICTATORSHIP
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DOMESTIC BORROWING
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EXPENDITURE
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EXPENDITURE RESPONSIBILITIES
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FEDERAL
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FEDERAL GOVERNMENT
dc.subject
FEDERALISM
dc.subject
FEDERATIONS
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FINANCIAL MANAGEMENT
dc.subject
FINANCIAL MARKETS
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FISCAL
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FISCAL BALANCE
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FISCAL CRISES
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FISCAL DECENTRALIZATION
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FISCAL DISCIPLINE
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FISCAL FEDERALISM
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FISCAL MANAGEMENT
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FISCAL PERFORMANCE
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FISCAL POLICY
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GOVERNMENT LEVEL
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GOVERNMENT LEVELS
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GOVERNMENT OFFICIALS
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GOVERNMENT REVENUES
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GOVERNMENT SPENDING
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GROSS DOMESTIC PRODUCT
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HARD BUDGET CONSTRAINTS
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INCOME
dc.subject
INFLATION
dc.subject
INSTITUTIONAL REFORMS
dc.subject
INTERGOVERNMENTAL FISCAL RELATIONS
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INTERGOVERNMENTAL TRANSFERS
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LEGISLATURE
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LEVELS OF GOVERNMENT
dc.subject
LOCAL GOVERNMENT
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LOCAL GOVERNMENT REVENUES
dc.subject
LOCAL GOVERNMENTS
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MACROECONOMIC STABILITY
dc.subject
NATIONAL GOVERNMENTS
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NATIONAL PLANNING
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PROVISIONS
dc.subject
PUBLIC EXPENDITURE
dc.subject
PUBLIC EXPENDITURE ANALYSIS
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PUBLIC EXPENDITURE MANAGEMENT
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PUBLIC EXPENDITURE REVIEW
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PUBLIC FINANCE
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PUBLIC FINANCES
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PUBLIC SECTOR
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PUBLIC SERVANTS
dc.subject
PUBLIC SERVICE
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PUBLIC SPENDING
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REVENUE GROWTH
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REVENUE SHARING
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REVENUE SOURCES
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ROADS
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SOFT BUDGET CONSTRAINTS
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STATE BUDGET
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STATE GOVERNMENT
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STATE GOVERNMENTS
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STATE OFFICIALS
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STATES
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TAX
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TAX ADMINISTRATION
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TOTAL EXPENDITURES
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TRANSPARENCY FISCAL FEDERALISM
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FISCAL SUSTAINABILITY
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INTERGOVERNMENTAL FISCAL RELATIONS
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INTERGOVERNMENTAL TAX RELATIONS
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INTERGOVERNMENTAL TRANSFER OF FUNDS
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FINANCIAL MANAGEMENT
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FISCAL EFFICIENCY
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FISCAL REFORMS
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LOCAL GOVERNMENT BUDGETS
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LOCAL GOVERNMENT EXPENDITURES
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BORROWING ARRANGEMENTS
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REVENUE SHARING
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AUTONOMY
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COST CONTROL
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INSTITUTIONAL ARRANGEMENTS
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BUDGET PREPARATION
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BUDGET IMPLEMENTATION
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BUDGET REFORM
dc.subject
PROCUREMENT
dc.subject
MODERNIZATION
dc.title
Nigeria : State Finances Study
en
okr.doctype
Economic & Sector Work :: General Economy, Macroeconomics and Growth Study
okr.doctype
Economic & Sector Work
okr.docurl
http://documents.worldbank.org/curated/en/2003/04/2863070/nigeria-state-finances-study-nigeria-states-finances-study
okr.globalpractice
Social, Urban, Rural and Resilience
okr.globalpractice
Governance
okr.globalpractice
Governance
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
000160016_20040122122738
okr.identifier.internaldocumentum
2863070
okr.identifier.report
25710
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/01/22/000160016_20040122122738/Rendered/PDF/257100UNI.pdf
en
okr.region.administrative
Africa
okr.region.country
Nigeria
okr.sector
Public Administration, Law, and Justice :: Sub-national government administration
okr.topic
Urban Development :: Urban Governance and Management
okr.topic
Governance :: Regional Governance
okr.topic
Governance :: National Governance
okr.topic
Public Sector Management and Reform
okr.topic
Public Sector Economics and Finance
okr.unit
AFT: PREM 3 (AFTP3)
okr.volume
1 of 1

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