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This study focuses on democracy and fiscal federalism issues in Nigeria. The study’s overall population consists of 200 ministry of budget and national planning professionals. The researcher employed questionnaires to collect data.

Descriptive A survey research design was used for this investigation. The study included 133 respondents who worked as statisticians, economists, administrative personnel, and junior staff. The acquired data were displayed in tables and analysed with simple percentages and frequencies.

Chapter one


1.1 Background of the Study

Nigeria, the world’s most populous black nation with a population of around 140 million people and more than 350 ethnic linguistic groups, effectively transitioned to democratic governance on May 29, 1999,

following several years of military control. A federal system of governance is frequently the result of groups of people wanting to join a union without having to reveal their identity.

Federalism appears to be an appealing form of government, especially in the context of ethnic heterogeneity present in many African states. It is widely acknowledged that federalism, as a conflict resolution mechanism, has failed to eliminate the scourge of ethnicity, sectionalism, and religious conflict from Nigerian body politics.

With nearly forty years of attempting to navigate the muddy seas of Nigerian politics, many, including nationalists, politicians, and civil society, have become discouraged, to the point where voices are advocating for the country’s complete balkanization.

Furthermore, in Nigeria, the contestation over federalism has basically presented itself in two ways: as a guest seeking access and influence over political power, or as a recipient of nationally generated wealth.

According to Momoh (1999:3), the mission of social engineering and restoration of the concept of federalism in both form and substance was delegated to military personnel.

It came as no surprise that the federalism dilemma was country-specific. Furthermore, because the income allocation concept was narrowed in favour of the states, there was a greater demand for increased money from state and municipal governments.

It is worth noting that the idiosyncrasies, anomalies, and tensions that plagued and continue to plague Nigerian federalism arose from factors other than the military’s arbitrary authority (Suberu 1994:68). However, there is still debate that the desire to strengthen Nigeria’s federal practice has a magnetic pull on many Nigerians.

Also, in the present administration, it is expected that several vexing issues such as the federal government’s overcentralization of powers, the formation of states, revenue allocation, the formation of local government councils, and the subject of citizenship will receive immediate consideration.

Much like in most European colonies, the implementation of federalism in Nigeria has been far from transparent. Democracy, in its true sense, should exist to accept and respect the opinions of the various units that have banded together to form a new political society.

1.2 Statement of the Problem

The issue of federalism arose immediately after Nigeria gained independence and adopted a republican system of government. Nigerian federalism has been particularly troublesome because it involves a wide range of ethnic groupings.

The primary goal of this research is to uncover imminent concerns with federalism in Nigeria’s democratic system. The following problem would be applicable.

What are the flaws with Nigeria’s federal system?

How have these problems exacerbated Nigeria’s already deteriorating democratic environment.

What are the procedures and methods used to address these issues?

What are the chances that Nigeria’s democracy can thrive and flourish despite federal problems?


The study’s aims are:

1. To determine the relationship between democracy and challenges with fiscal federalism in Nigeria

2. Identify the challenges with fiscal federalism in Nigeria.

3. Determine the issues that federalism poses to the practice of democracy in Nigeria.

4. Identify the revenue sources, issue areas, and solutions.

1.4 Research Hypotheses

To ensure the study’s success, the researcher developed the following research hypotheses:

H0: There is no relationship between democracy and fiscal federalism issues in Nigeria.

H1: There is a link between democracy and fiscal federalism issues in Nigeria.

H02: Federalism poses no challenges to the exercise of democracy in Nigeria.

H2: Federalism poses challenges to Nigerian democracy.

1.5 Significance of the Study

Federalism is a recurring issue in Nigeria, and researchers are increasingly paying attention to it. The research will be significant in the following respects. The study will look into the issues surrounding federalism in Nigeria.

The report will be noteworthy because it will highlight the challenges with federalism in Nigeria. The study is significant because it will make recommendations that would aid in the resolution of some of Nigeria’s fiscal federalism issues. It will also serve as reference material. Graduation requirements are met.

1.6 Scope and Limitations of the Study

The study’s scope includes democracy and fiscal federalism issues in Nigeria.The researcher faces various constraints that limit the scope of the investigation;

a) AVAILABILITY OF RESEARCH MATERIAL: The researcher has insufficient research material, which limits the investigation.

b) TIME: The study’s time frame does not allow for broader coverage because the researcher must balance other academic activities and examinations with the study.

c) Organisational privacy: Limited access to the chosen auditing firm makes it impossible to obtain all necessary and required information about the activities.

1.1 Definition of Terms

For the purposes of this work, the following terminology will be defined.

Democracy is a political system in which the people rule. Democracy is a type of government organised around the ideas of popular sovereignty, political and economic equality, popular consultation, and majority rule. Okon, Eminue (2005). Introduction to Political Science.

Federal Character: it refers to the notion of providing equal opportunities for all groups to participate in the country’s socioeconomic and political life. Wheare (1963:10) discusses the essence of federal government administration in Nigeria.

iii. Federalism: refers to a type of government with a constitutional arrangement and some constitutional structure that is purposefully created by political architects to maintain unity. Wheare (1963), a component of Nigerian federalism.

Ethnicity refers to a circumstance or condition in which a specific group of individuals is given preference based on their ethnic regional identity. It reflects the sense of belonging to a group of individuals. Truman, D. (1951), “The Governance”. New York: Knopt Publisher.

1.8 Organisation of the Study

This research study is organised into five chapters for simple understanding, as follows:

The first chapter is concerned with the introduction, which includes the (overview of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms, and the study’s historical context.

The second chapter focuses on the theoretical framework that underpins the study, as well as a review of relevant literature. Chapter three discusses the research design and technique used in the study.

Chapter four focuses on data gathering, analysis, and presenting of findings. Chapter 5 provides a summary, conclusion, and suggestions from the study.

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