To read the full version of this content please select one of the options below:

Fiscal federalism and accountability in Nigeria: an ARDL approach

Olabanji Olukayode Ewetan (Department of Economics and Development Studies, Covenant University, Ota, Nigeria)
Romanus Osabohien (Department of Economics and Development Studies, Covenant University, Ota, Nigeria)
Oluwatoyin Augustina Matthew (Department of Economics and Development Studies, Covenant University, Ota, Nigeria)
Abiola Ayopo Babajide (Department of Banking and Finance, Covenant University, Ota, Nigeria)
Ese Urhie (Department of Economics and Development Studies, Covenant University, Ota, Nigeria)

Journal of Money Laundering Control

ISSN: 1368-5201

Article publication date: 30 June 2020

Issue publication date: 31 July 2021

123

Abstract

Purpose

The purpose of this paper is to examine the relationship between fiscal federalism and accountability in Nigeria. Corruption is a global plague and is endemic in nature. Several policies have been adopted by the Nigerian Government to institutionalize accountability and combat the scourge of corruption that have hindered socio-economic progress but to no avail.

Design/methodology/approach

Thus, this study examined fiscal federalism and accountability issues in Nigeria using secondary data and used the auto-regressive distributed lag econometric technique to analyse the data.

Findings

The results from this study reveal that fiscal federalism fails to mitigate corruption in the long run in Nigeria because of poor bureaucratic quality (BQ) and ineffective law and order (LOR).

Social implications

Fiscal decentralization must be accompanied by legislations that will strengthen BQ of fiscal institutions at subnational levels and promote effective LOR.

Originality/value

This study recommends that for fiscal federalism to mitigate corruption in the long run, government must adopt appropriate policies to improve BQ and further strengthen LOR in Nigeria. The finding also suggests that to promote public sector accountability in Nigeria, government should ensure the simultaneous decentralization of expenditure and revenue to lower tiers of government. This study provides detailed empirical evidence that fiscal decentralization without accountability will accentuate public sector corruption, and in the long run, weaken local economic development initiative to boost growth and development.

Keywords

Acknowledgements

Ethics approval and consent to participate: Not applicable.

Funding: None.

Conflict of interest: The authors declare no conflict of interest.

Citation

Ewetan, O.O., Osabohien, R., Matthew, O.A., Babajide, A.A. and Urhie, E. (2021), "Fiscal federalism and accountability in Nigeria: an ARDL approach", Journal of Money Laundering Control, Vol. 24 No. 2, pp. 361-373. https://doi.org/10.1108/JMLC-05-2020-0046

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

Related articles