Nigeria's Fiscal Federalism and Development Incentives

The article by Dipo Baruwa examines the relationship between Nigeria's fiscal federalism and its development outcomes. It asserts that the federal system should facilitate coordination among the three tiers of government to promote growth.

The author argues that the fiscal structure must incentivize performance and accountability, linking revenue generation to regional productivity. Historical analysis reveals that Nigeria's fiscal policies have evolved, with a focus on creating incentives for regions to invest in productive sectors.

The article highlights that regions like the western region have successfully expanded their economies through investments in agriculture, while others have lagged. It stresses the need for a balanced approach to revenue allocation that encourages healthy competition among regions.

The shift towards a more equitable fiscal policy is deemed essential for fostering national cohesion and equitable development across Nigeria's diverse regions.