Measuring Governance in Africa
By Chukwuma Charles Soludo Nigeria operates a peculiar kind of federation (unitary federalism) with overwhelming concentration of powers on the Federal Government of Nigeria (FGN). Its fiscal federalism is also peculiar, with about 50% of the Federation Account shared among the 36 states and 774 local governments, and each armed with constitutional powers to spend without supervision by, or accountability to the federal government. Yes, the FGN has control over monetary, financial and exchange rate policies, taxation, external trade and finance, wage policy, and a monopoly of internal and external security. But the size, composition and quality of public sector spending still exert the greatest impacts on the economy and the welfare of citizens. Thus, given the enormous spending powers of the other tiers of government, it means that if they do not “perform”, efforts at the federal level to improve the welfare of citizens could amount to ...