Nigeria : State Finances Study
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 fi...
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Format: | General Economy, Macroeconomics and Growth Study |
Language: | English en_US |
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Washington, DC
2013
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2003/04/2863070/nigeria-state-finances-study-nigeria-states-finances-study http://hdl.handle.net/10986/14671 |
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okr-10986-14671 |
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recordtype |
oai_dc |
repository_type |
Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English en_US |
topic |
ACCOUNTABILITY ACCOUNTING AUTHORITY BASIC EDUCATION BORROWING BORROWING RULES BUDGET SYSTEMS CONSTITUTION COUNCILS DEBT DEBT MANAGEMENT DEBT SERVICE DECENTRALIZATION DEFICITS DEMOCRATIC GOVERNANCE DICTATORSHIP DOMESTIC BORROWING EXPENDITURE EXPENDITURE RESPONSIBILITIES FEDERAL FEDERAL GOVERNMENT FEDERALISM FEDERATIONS FINANCIAL MANAGEMENT FINANCIAL MARKETS FISCAL FISCAL BALANCE FISCAL CRISES FISCAL DECENTRALIZATION FISCAL DISCIPLINE FISCAL FEDERALISM FISCAL MANAGEMENT FISCAL PERFORMANCE FISCAL POLICY GOVERNMENT LEVEL GOVERNMENT LEVELS GOVERNMENT OFFICIALS GOVERNMENT REVENUES GOVERNMENT SPENDING GROSS DOMESTIC PRODUCT HARD BUDGET CONSTRAINTS INCOME INFLATION INSTITUTIONAL REFORMS INTERGOVERNMENTAL FISCAL RELATIONS INTERGOVERNMENTAL TRANSFERS LEGISLATURE LEVELS OF GOVERNMENT LOCAL GOVERNMENT LOCAL GOVERNMENT REVENUES LOCAL GOVERNMENTS MACROECONOMIC STABILITY NATIONAL GOVERNMENTS NATIONAL PLANNING PROVISIONS PUBLIC EXPENDITURE PUBLIC EXPENDITURE ANALYSIS PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REVIEW PUBLIC FINANCE PUBLIC FINANCES PUBLIC SECTOR PUBLIC SERVANTS PUBLIC SERVICE PUBLIC SPENDING REVENUE GROWTH REVENUE SHARING REVENUE SOURCES ROADS SOFT BUDGET CONSTRAINTS STATE BUDGET STATE GOVERNMENT STATE GOVERNMENTS STATE OFFICIALS STATES TAX TAX ADMINISTRATION TOTAL EXPENDITURES TRANSPARENCY FISCAL FEDERALISM FISCAL SUSTAINABILITY INTERGOVERNMENTAL FISCAL RELATIONS INTERGOVERNMENTAL TAX RELATIONS INTERGOVERNMENTAL TRANSFER OF FUNDS FINANCIAL MANAGEMENT FISCAL EFFICIENCY FISCAL REFORMS LOCAL GOVERNMENT BUDGETS LOCAL GOVERNMENT EXPENDITURES BORROWING ARRANGEMENTS REVENUE SHARING AUTONOMY COST CONTROL INSTITUTIONAL ARRANGEMENTS BUDGET PREPARATION BUDGET IMPLEMENTATION BUDGET REFORM PROCUREMENT MODERNIZATION |
spellingShingle |
ACCOUNTABILITY ACCOUNTING AUTHORITY BASIC EDUCATION BORROWING BORROWING RULES BUDGET SYSTEMS CONSTITUTION COUNCILS DEBT DEBT MANAGEMENT DEBT SERVICE DECENTRALIZATION DEFICITS DEMOCRATIC GOVERNANCE DICTATORSHIP DOMESTIC BORROWING EXPENDITURE EXPENDITURE RESPONSIBILITIES FEDERAL FEDERAL GOVERNMENT FEDERALISM FEDERATIONS FINANCIAL MANAGEMENT FINANCIAL MARKETS FISCAL FISCAL BALANCE FISCAL CRISES FISCAL DECENTRALIZATION FISCAL DISCIPLINE FISCAL FEDERALISM FISCAL MANAGEMENT FISCAL PERFORMANCE FISCAL POLICY GOVERNMENT LEVEL GOVERNMENT LEVELS GOVERNMENT OFFICIALS GOVERNMENT REVENUES GOVERNMENT SPENDING GROSS DOMESTIC PRODUCT HARD BUDGET CONSTRAINTS INCOME INFLATION INSTITUTIONAL REFORMS INTERGOVERNMENTAL FISCAL RELATIONS INTERGOVERNMENTAL TRANSFERS LEGISLATURE LEVELS OF GOVERNMENT LOCAL GOVERNMENT LOCAL GOVERNMENT REVENUES LOCAL GOVERNMENTS MACROECONOMIC STABILITY NATIONAL GOVERNMENTS NATIONAL PLANNING PROVISIONS PUBLIC EXPENDITURE PUBLIC EXPENDITURE ANALYSIS PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REVIEW PUBLIC FINANCE PUBLIC FINANCES PUBLIC SECTOR PUBLIC SERVANTS PUBLIC SERVICE PUBLIC SPENDING REVENUE GROWTH REVENUE SHARING REVENUE SOURCES ROADS SOFT BUDGET CONSTRAINTS STATE BUDGET STATE GOVERNMENT STATE GOVERNMENTS STATE OFFICIALS STATES TAX TAX ADMINISTRATION TOTAL EXPENDITURES TRANSPARENCY FISCAL FEDERALISM FISCAL SUSTAINABILITY INTERGOVERNMENTAL FISCAL RELATIONS INTERGOVERNMENTAL TAX RELATIONS INTERGOVERNMENTAL TRANSFER OF FUNDS FINANCIAL MANAGEMENT FISCAL EFFICIENCY FISCAL REFORMS LOCAL GOVERNMENT BUDGETS LOCAL GOVERNMENT EXPENDITURES BORROWING ARRANGEMENTS REVENUE SHARING AUTONOMY COST CONTROL INSTITUTIONAL ARRANGEMENTS BUDGET PREPARATION BUDGET IMPLEMENTATION BUDGET REFORM PROCUREMENT MODERNIZATION World Bank Nigeria : State Finances Study |
geographic_facet |
Africa Nigeria |
description |
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. |
format |
Economic & Sector Work :: General Economy, Macroeconomics and Growth Study |
author |
World Bank |
author_facet |
World Bank |
author_sort |
World Bank |
title |
Nigeria : State Finances Study |
title_short |
Nigeria : State Finances Study |
title_full |
Nigeria : State Finances Study |
title_fullStr |
Nigeria : State Finances Study |
title_full_unstemmed |
Nigeria : State Finances Study |
title_sort |
nigeria : state finances study |
publisher |
Washington, DC |
publishDate |
2013 |
url |
http://documents.worldbank.org/curated/en/2003/04/2863070/nigeria-state-finances-study-nigeria-states-finances-study http://hdl.handle.net/10986/14671 |
_version_ |
1764428373270986752 |
spelling |
okr-10986-146712021-04-23T14:03:17Z Nigeria : State Finances Study World Bank ACCOUNTABILITY ACCOUNTING AUTHORITY BASIC EDUCATION BORROWING BORROWING RULES BUDGET SYSTEMS CONSTITUTION COUNCILS DEBT DEBT MANAGEMENT DEBT SERVICE DECENTRALIZATION DEFICITS DEMOCRATIC GOVERNANCE DICTATORSHIP DOMESTIC BORROWING EXPENDITURE EXPENDITURE RESPONSIBILITIES FEDERAL FEDERAL GOVERNMENT FEDERALISM FEDERATIONS FINANCIAL MANAGEMENT FINANCIAL MARKETS FISCAL FISCAL BALANCE FISCAL CRISES FISCAL DECENTRALIZATION FISCAL DISCIPLINE FISCAL FEDERALISM FISCAL MANAGEMENT FISCAL PERFORMANCE FISCAL POLICY GOVERNMENT LEVEL GOVERNMENT LEVELS GOVERNMENT OFFICIALS GOVERNMENT REVENUES GOVERNMENT SPENDING GROSS DOMESTIC PRODUCT HARD BUDGET CONSTRAINTS INCOME INFLATION INSTITUTIONAL REFORMS INTERGOVERNMENTAL FISCAL RELATIONS INTERGOVERNMENTAL TRANSFERS LEGISLATURE LEVELS OF GOVERNMENT LOCAL GOVERNMENT LOCAL GOVERNMENT REVENUES LOCAL GOVERNMENTS MACROECONOMIC STABILITY NATIONAL GOVERNMENTS NATIONAL PLANNING PROVISIONS PUBLIC EXPENDITURE PUBLIC EXPENDITURE ANALYSIS PUBLIC EXPENDITURE MANAGEMENT PUBLIC EXPENDITURE REVIEW PUBLIC FINANCE PUBLIC FINANCES PUBLIC SECTOR PUBLIC SERVANTS PUBLIC SERVICE PUBLIC SPENDING REVENUE GROWTH REVENUE SHARING REVENUE SOURCES ROADS SOFT BUDGET CONSTRAINTS STATE BUDGET STATE GOVERNMENT STATE GOVERNMENTS STATE OFFICIALS STATES TAX TAX ADMINISTRATION TOTAL EXPENDITURES TRANSPARENCY FISCAL FEDERALISM FISCAL SUSTAINABILITY INTERGOVERNMENTAL FISCAL RELATIONS INTERGOVERNMENTAL TAX RELATIONS INTERGOVERNMENTAL TRANSFER OF FUNDS FINANCIAL MANAGEMENT FISCAL EFFICIENCY FISCAL REFORMS LOCAL GOVERNMENT BUDGETS LOCAL GOVERNMENT EXPENDITURES BORROWING ARRANGEMENTS REVENUE SHARING AUTONOMY COST CONTROL INSTITUTIONAL ARRANGEMENTS BUDGET PREPARATION BUDGET IMPLEMENTATION BUDGET REFORM PROCUREMENT MODERNIZATION 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. 2013-07-30T21:32:16Z 2013-07-30T21:32:16Z 2003-04 http://documents.worldbank.org/curated/en/2003/04/2863070/nigeria-state-finances-study-nigeria-states-finances-study http://hdl.handle.net/10986/14671 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: General Economy, Macroeconomics and Growth Study Economic & Sector Work Africa Nigeria |