GASPRO International Journal of Eminent Scholars

ABSTRACT

In Nigeria, the issue of fiscal federalism and democracy remain grossly unsuitable because of misplaced priorities. There has been a controversial debate and conflicts on how Government revenue is to be shared amongst the component tiers of Government in the country. The inability to implement a full scaled true federalism and fiscal policy has in the past hindered national development greatly. It is on this premise that this study has deemed it necessary to critically assess the issues /challenges of fiscal federalism in Nigeria federalism between 1999 and 2014. The study utilized secondary sources in its data collection and adopted fiscal federalism theory as its theoretical framework of analysis. The study found out that there is inability of states to raise, retain and manage revenue generated within their units and this has been the bane of socio economic development. Hence the study recommends that, the vertical revenue allocation should be deepen through devolution of resources in order to abate socio-economic malaise, and the economic dependence of states on the federal government. The paper also recommends stipulation of stiff penalties to enhance fiscal federalism compliance. KEYWORDS: State Revenue Management Powers, Fiscal Federalism, Issues and Nigeria Federalism