Abstract
Can fiscal and political decentralization help to circumvent or cauterize the problems of predation, authoritarianism, internecine conflict, social inequity, economic underperformance, and other governance failures that plague Africa’s neo-patrimonial states in general and natural resource-dependent countries in particular? This chapter explores that question by distilling lessons from the experience of Nigeria, Africa’s largest oil producer, biggest economy, most populous country, and long-standing decentralized federal polity. Nigeria has granted extensive policy autonomy and fiscal resources to its subnational governments with some salutary effects, but without escaping the resource curse or attaining robust developmental or democratic governance. The chapter explores challenges and pathologies in the design of Nigerian fiscal decentralization that may account for the country’s predicament. Additionally, it explores the experiences of Ghana and Kenya, two new or prospective African oil exporters that have instituted significant experiments in good oil revenue governance and/or political decentralization.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Ackah-Baidoo, A. 2013. ‘Fishing in Troubled Waters: Oil Production, Seaweed and Community-Level Grievances in the Western Region of Ghana,’ Community Development Journal 48(3): 406–420.
Anderson, D. and Browne, A. 2011. ‘The Politics of Oil in Eastern Africa,’ Journal of Eastern African Studies 5(2): 369–410.
Awortwi, N. 2010. ‘The Past, Present and Future of Decentralization in Africa: A Comparative Study of Local Government Development Trajectories of Ghana and Uganda,’ International Journal of Public Administration 33(12): 620–634.
Ayee, J. and Dickovick, J. T. 2010. Comparative Assessment of Decentralization in Africa: Ghana Desk Study. Washington, DC: U.S. Agency for International Development.
Broadway, R. and Shah, A. (eds.) 2007. Intergovernmental Fiscal Transfers: Principles and Practice. Washington, DC: The World Bank.
Bryan, S. and Hofmann, B. 2007. Transparency and Accountability in Africa’s Extractive Industries: The Role of the Legislature. Washington, DC: National Democratic Institute for International Affairs.
Carter Center. 2013. Observing Kenya’s March 2013 National Elections: Final Report. Atlanta: Carter Center.
Central Bank of Nigeria. 2009. Annual Statement of Accounts and Finances. Abuja: CBN.
Diamond, L. 1999. Developing Democracy: Toward Consolidation. Baltimore: The Johns Hopkins University Press.
Dickovick, T. and Riedl, R. 2010. Comparative Assessment of Decentralization in Africa: Final Report and Summary of Findings. Washington, DC: United States Agency for International Development.
Federal Republic of Nigeria. 1999. Constitution of the Federal Republic of Nigeria 1999. Abuja: Government of Nigeria.
Gillies, A. 2010. Sovereign Wealth Fund Requires Legal Standing, Binding Rules and Transparency. New York: Revenue Watch Institute.
Gismatullin, E. 2013. ‘Kenya from Nowhere Plans East Africa’s First Oil Exports: Energy,’ http://www.bloomberg.com. Accessed 20 August 2014.
Gyimah-Boadi, E. and Prempeh, H. K. 2012. ‘Oil, Politics, and Ghana’s Democracy,’ Journal of Democracy 23(3): 94–108.
Heller, P. and Marcel, V. 2012. Institutional Design in Low Capacity Oil Hotspots. New York: Revenue Watch Institute.
Horowitz, D. 1985. Ethnic Groups in Conflict. Berkeley: University of California Press.
Human Rights Watch. 2007. Chop Fine: The Human Rights Impact of Local Government Corruption and Mismanagement in Rivers State, Nigeria. New York: Human Rights Watch.
Inglin, A. 2009. ‘Addressing the Resource Curse in Ghana: Lessons from Nigeria.’ International Monetary Fund. Nigeria Country Report, No. 09/315, November 2009.
Joseph, R. 1987. Democracy and Prebendal Politics in Nigeria: The Rise and Fall of the Second Republic. Cambridge: Cambridge University Press.
Kimenyi, M. 2013. Devolution and Resource Sharing in Kenya. Washington, DC: Brookings Institution.
KPMG Africa Limited. 2013. ‘Oil and Gas in Africa: Africa’s Reserves, Potential and Prospects.’ http://www.Kpmg.com. Accessed 10 July 2013.
McKenzie, K. 2006. ‘Fiscal Federalism and the Taxation of Non-Renewable Resources.’ In Bird, R. M. and Vaillancourt, F. (eds.) Perspectives on Fiscal Federalism, 247–265. Washington, DC: The World Bank.
Newsom, C. 2011. ‘Conflict in the Niger Delta: More than a Local Affair.’ Washington, DC: United States Institute of Peace, Special Report 271.
Okpanachi, E. and Andrews, N. 2012. ‘Preventing the Oil “Resource Curse” in Ghana: Lessons from Nigeria,’ World Futures 68(6): 430–450.
Pham, P. 2012. ‘Boko Haram’s Evolving Threat,’ Africa Security Brief, No. 20. Washington, DC: Africa Center for Strategic Studies.
Republic of Kenya. 2010. The Constitution of Kenya. National Council for Law Reporting, Nairobi.
Revenue Watch Institute. 2014. Natural Resource Funds: Managing the Public Trust; How to Make Natural Resource Funds Work for Citizens. New York: Revenue Watch Institute.
Sayne, A. and Gillies, A. 2011. ‘The Prospects for Cash Transfers in the Niger Delta: A Skeptical View.’ Center for Global Development, Oil-to-Cash Initiative Background Paper.
Senelwa, K. 2013. ‘Kenyan Senate Crafts Bill on Sharing of Natural Resources,’ The East African, December 14.
Shepherd, B. 2013. Oil in Uganda: International Lessons for Success. London: Chatham House.
Soares de Oliveira, R. 2013. ‘Oil Politics.’ In Cheeseman, N., Anderson, D. and Scheibler, A. (eds.) Routledge Handbook of African Politics, 178–188. London and New York: Routledge.
Suberu, R. 2008. ‘The Supreme Court and Federalism in Nigeria,’ Journal of Modern African Studies 46(3): 451–485.
Van der Ploeg, R. and Wills, S. 2013. ‘Kenya’s Resource Challenge.’ http://www.project-syndicate.org. Accessed 2 December 2013.
Vasquez, P. 2013. ‘Kenya at a Crossroads: Hopes and Fears Concerning the Development of Oil and Gas Reserves,’ International Development Policy 5(2): 1–18.
Weate, J. 2012. An Uphill Struggle: Oil Wealth and the Push for Transparency in the Niger Delta. New York: Revenue Watch Institute.
Weingast, B. 1995. ‘The Economic Role of Political Institutions: Market Preserving Federalism and Economic Growth,’ Journal of Law, Economics, and Organization 11(1): 1–31.
World Bank. 2003. Nigeria States Finance Study. Washington, DC: World Bank.
———. 2010. Intergovernmental Fiscal Management in Natural-Resource Rich Settings: A Guide for Policy Practitioners. Washington, DC: World Bank, June 23.
———. 2012. Devolution without Disruption: Pathways to a Successful New Kenya. Washington, DC: World Bank.
———. 2013a. Nigeria Economic Report, No. 1. Washington, DC: World Bank.
———. 2013b. Kenya Sets Framework to Manage New Petroleum Wealth. Washington, DC: World Bank.
Editor information
Editors and Affiliations
Copyright information
© 2015 Rotimi T. Suberu
About this chapter
Cite this chapter
Suberu, R.T. (2015). Lessons in Fiscal Federalism for Africa’s New Oil Exporters. In: LeVan, A.C., Fashagba, J.O., McMahon, E.R. (eds) African State Governance. Palgrave Macmillan, London. https://doi.org/10.1057/9781137523341_2
Download citation
DOI: https://doi.org/10.1057/9781137523341_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-55313-6
Online ISBN: 978-1-137-52334-1
eBook Packages: Palgrave Political Science CollectionPolitical Science and International Studies (R0)