Dependency Theory and Intergovernmental Fiscal Relations: Insights into Nigeria

Nigeria is a federal state with delineation of political, economic and administrative powers and responsibilities among the federating national and sub-national governments. In tandem with the above framework, Nigeria adopts fiscal federalism, in order to achieve smooth conduct of public revenue and expenditure operations. The constitution of the federal republic of Nigeria 1989, as subsequently amended, allocates all fiscal responsibilities to the respective federating tiers of government. Commentaries by analysts, authors and observers allude to the lopsidedness of the allocation of responsibilities and fiscal capacities, in terms of "quantity" and "economic potentials", in favour of the national government. This unfavourable skewness against the sub-national tiers, noted all critics, remained the fundamental harbinger of fiscal disequilibrium, leading to the incapacity and dependent position of the sub-national governments. This study examined the implications of the dependency in the intergovernmental relations enshrined in the Grundnorm, in the light of the backdrop of Andre Gimder Frank's Dependency Theory.