Resource Allocation and the Problem of Utilization in Nigeria: An Analysis of Resource Utilization in Cross River State, 1999-2007

Description

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Abstract

This research examines the problem of Resource Allocation and Utilization within the ambit of fiscal federalism in Nigeria from the perspective of Cross River State between 1999 and 2007.

The analysis of the political economy of resources allocation and utilization in the State was adopted to underscore the problem and prospects of public resource utilization within the period under study.

After consulting relevant literature on the subject matter, there is much evidence to show that researchers have tended to concentrate more on resource allocation within the Nigerian fiscal practice with little or no emphasis on utilization.

The study therefore, revealed that the problem of Cross River State does not lie with resource inadequacy alone, but mainly with ineffective and inefficient utilization of resources.

In examining the problem, the elite’s theory is used to operationalise the extent to which public resources were utilized in Cross River State during the period under study.

Introduction

Federalism has its essence in two organically related issues. These are power sharing and resource allocation. The former defines the political essence of federalism while the latter underpins its fiscal dimension.

Over the years, the fiscal dimension of the federalist practice has been quite problematic in Nigeria. In effect, fiscal relations within the context of the Nigerian federation is said to have been characterized by systematic defects which have given rise to dysfunctions and crises.

One significant dimension of the fiscal relations problematics in Nigerian federalism has been the question associated with the issue of resource control. The issue of resource control is as old as the Nigeria federation.

In the 1950’s for instance, the tendency was manifested in the fashion of interregional controversies over the acceptable revenue allocation principles and formulae.

In more recent times, the problem of resources control has not only persisted, but it has been rather politicized by different opinions. The insistence of the oil producing states of the Niger Delta on the principle of derivation as the yardstick of revenue allocation in Nigeria is better understood within this matrix.

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