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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Main Author: World Bank
Format: General Economy, Macroeconomics and Growth Study
Language:English
en_US
Published: Washington, DC 2013
Subjects:
TAX
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
id okr-10986-14671
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