Comparing Assignment Systems in Nigeria with selected Federations

Abstract

Assignment systems deal with the division of governmental responsibilities, functions, powers and authority among the federating units. This is with a major challenge of how to assign responsibilities and fiscal resources in a way that promotes federal principles. This paper is narrowed down to fiscal assignment systems in five more matured federations (the United States of America, Canada, Australia, India, and Germany) with a view to comparing the structure, pattern and institutional arrangements governing fiscal assignment systems with Nigerian case. The Nigerian case is a good illustration of a country transiting from a centralized to a
decentralized one with respect to resources but decentralized in respect of expenditure assignment without a credible system of accountability and strong incentives to diversify the economy from dependence on oil resource. The paper looks at the fiscal assignment systems in Nigeria and the other selected federations; the peculiarity of selected federations in management of IGFR by placing a country either as one running a centralized or decentralized system; the challenge of managing assignment systems in (highly) centralized and decentralized federal systems; and lessons which Nigeria can learn from the other federations to ensure that assignment systems promote rather than undermine other development goals and credible system.