The Economics of Nigerian Federalism: Selected Issues in Economic Management

Nigeria's economic difficulties are due primarily to public-sectormismanagement exacerbated by the dynamics of federalism andstate creation and by the growth in centralized federal power.Monetary policy has been inadequate, fiscal policy has rewardedstate governments but not brought their spending policies inline with their own resources and with national economic objectives,and resources have been consistently misallocated, largely becauseof the principle of "federal character." Recent efforts to deregulateand privatize the economy show promise, but the success of economicdevelopment will depend greatly on the future civilian or militarygovernance of Nigeria.