Intergovernmental Fiscal Relations and Conflict Management: A Comparative Study of Nigeria and Some Selected States (2015-2021)

Abstract

The objectives of the study is essentially to determine what brings about conflict in intergovernmental fiscal relations and how such conflicts are resolved in Nigeria. The study also examined intergovernmental fiscal relations in some selected countries. The study found that intergovernmental fiscal relations conflicts also occur in other countries for varied reasons and each country has its unique mechanism for resolving them. In Argentina, it is through Bail-Out mechanism while in Belgium it is through Bail-In process. In Ethiopia, the federal government uses grant formula which only helps in the short run. Nigeria has three ways of managing its intergovernmental fiscal relations. These are judicial mechanism, administrative mechanism and political mechanisms. The study adopted Expo facto as its research design. The method of data collection adopted by the study was secondary source of data. It deployed relational content analysis as its method of data analysis which is essentially a historical and descriptive design. The study uses the systems theory as its theoretical framework of analysis. The study notes that in spite of the conflict management mechanisms intergovernmental fiscal relations conflicts still persist. The study therefore concluded and recommended that the way out is the adoption of true federalism in which case the states would control and manage the natural recourses found in their respective states and pay into the federal coffers the determined and agreed percentage.