Columns and Opinions across Nigerian Newspapers

The Pursuit of ‘Fiscal’ Federalism - What is fiscal federalism? In economics, it is a subfield of public finance that studies the financial relations — revenue and expenditure — between the different levels of government in a federation. In his 1959 seminal book, The Theory of Public Finance, the German-born American economist, Richard Musgrave, propounded the theory of fiscal federalism, arguing that to address the inequality in the distribution of wealth among the states and achieve economic stability as well as efficient and effective allocation of resources, the federal government should play the lead role of “redistributing” resources — while the states should handle the “allocation”.