• Ethnic Affiliation And Resource Challenges In Nigeria

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    • Each of these four is related to the whole gamut of the political economy of federalism. Any lapse in one or more of these factors can mar any federal system especially a fragile federation with a dependent capitalist polity like Nigeria.
      The debate on Nigeria’s fiscal federalism and relations hinges on the fundamental question of who gets what of the national cake, when and how. This is fundamental given that Nigeria as a monolithic economy gets over 80% of its revenue from crude oil, by virtue of the constitutional provision, this revenue must be disbursed to the three tiers of government. It also explains why the formula for revenue allocation has continued to be at the heart of public debate and why public office holders are hardly held accountable for the misuse of revenues derived from the national oil wealth. It is obvious that the nature and conditions of the financial relations in any federal system of government is crucial to the survival of such a system. A major source of inter-governmental disputes under a federal system centres on the problems of securing adequate financial resources on the part of the lower levels of government to discharge essential political and constitutional responsibilities (Olaloku, 1979:109). In all federations, there are always constitutional wrangling or how resources should be shared among the constituent units since there are always poor and relatively rich units for instance, in Nigeria, the poor units/regions/states often prefer a re-distributive system of federal resource while the richer or more endowed States are in favour of more financial autonomy and revenue allocation based on the relative contribution of each constituent units to the federal purse. In Nigeria revenue allocation largely implies the allocation of oil revenue, therefore, oil is central to the politics of inter-governmental fiscal relations thus, the contending forces over power and access to oil, extraction and accumulation of resources constitute the major conceptual issues that must be objectively confronted in seeking to understand the political economy of federalism in Nigeria and revenue allocation.
      One striking feature of the recommendations of various Revenue Allocation Commissions with respect to the revenue allocation formula adopted from the 1970s is a phenomenon tagged the “concentration process” in Nigeria’s fiscal federalism (Mbanefoh and Egwakihide 1998:22). This refers to situation whereby there is a gradual reduction of State Government Accounts and this is further exacerbated with the establishment of Special Account by the Federal Government (Mbanefoh, Egwakihide 1998). This is because it was used to favour a few selected states/Local Councils more often than not, it provoked inter-state hostility and rivalry, thereby undermining the stability and corporate existence of the country. Suberu (1995:4), observed that the subsequent periodic modifications of the various allocative criteria have achieved three things. First, they have effectively legitimized the criteria of demography and equality as the prominent principles of horizontal revenue sharing in Nigeria. Second, the periodic changes in the horizontal revenue sharing system have largely compounded the schemes intensely political and divisive nature. For instance, in 1990, the Babangida Administration re-introduced, and then assigned a weight of ten percent to the discredited principles of land mass. Ethno-regional opposition to this apparent bias to the North (which with only about half of the nation’s population), encompasses some three quarters of the national territory led some southern members of the National Constitutional Conference to propose the inclusion of the countervailing ‘political’ principle of ‘population density’ in the horizontal revenue sharing scheme. The primary effect of such regional political manoeuvres is to deprive the nation of the development of a coherent revenue sharing scheme that balances ‘efficiency’ and ‘equity’ principles of allocation in a politically healthy and economically productive manner. Third, and finally, Nigeria’s horizontal revenue sharing policies and reforms give insufficient recognition to such largely non-political principles of allocation as the social development factor and internal revenue generation.
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    • ABSRACT - [ Total Page(s): 1 ]This research work titled ethic affiliation and resource challenges in Nigeria with particular reference to Igbo Etiti Local Government Area of Enugu State. The researcher examined the effect of ethnic affiliation on the development of Nigerian economy. Four research questions and hypotheses were formulated in this project work. The research instrument used in this study includes oral interview and questionnaire. The population of the study was 209,248 while the samples size of 399 was determine ... Continue reading---