The Problematics of Fiscal Federalism in Postcolonial Nigeria

This chapter focuses on the problematics of the implementation of the principles of fiscal federalism in the Nigerian federation in the postcolony. The practice of fiscal federalism in this period has not been appropriately historicised to identify the trends, changes, and continuities in these developments, and this gap needs to be filled. The chapter adopts a qualitative research methodology with heavy reliance on primary written sources, including newspaper reports and interviews with relevant stakeholders, and secondary sources. This study revealed that the quest for an appropriate revenue-allocation formula and fiscal decentralisation has been a major challenge to the Nigerian federal system since independence, and this was compounded by the military incursion into politics. These challenges are inextricably linked with the problems of nation building, which is characteristic of developing nations. The problem of the application of fiscal decentralisation has always been a sensitive one and has generated contentious issues which continuously shake the foundation of the country’s corporate survival. This chapter concludes that the shortcomings which inherently characterise Nigeria’s fiscal federalism have constituted a clog in the wheels of Nigeria’s development and nationhood since independence and must be overcome.