Fiscal Federalism and Road Infrastructural Development in Nigeria's Fourth Republic (2007-2019)
Abstract
Nigeria is one of the federal states in the world where fiscal federalism shapes financial relations among the federating units. Even though federalism was not solely adopted for provision of infrastructure in Nigeria, effective practice of fiscal federalism ensures infrastructural development in a federal state. However, reverse has been the case in the country. Thus, this study examined fiscal federalism and infrastructural development in Nigeria’s fourth republic. The research design employed for the study was triangulation or mixed methods design. The population of the study was Anambra, Gombe, Kano, Kwara, Lagos and Rivers states, while Gonzalez’s (2008) sample size formula was used to determine the sample size. Thus, 40 respondents were selected from each state. Using purposeful sampling method, the study collected data through questionnaire triangulated with unstructured interviews. Consequently, the data collected was analysed and test of hypotheses was done with multiple regressions using the Statistical Package for the Social Sciences (SPSS) software 3rd edition. The study found that fiscal federalism has not led to the improvement of road infrastructure in Nigeria. The test of hypothesis showed a coefficient of regression R=.972and R2=.945. The F-statistics, which was F=3.255 was not significant at 0.05 level. The study also found that with improved fiscal federalism, Nigeria will experience infrastructural development. Hypothesis test showed a coefficient of regression of R=.974 and R2=.948. The F-statistics, which was F=32.468 was significant at p=0.05. Thus, the study recommended that Nigeria should adapt fiscal federalism practice in the United States in which other federating units would not need to depend on the federal level for their infrastructure development. All Federating units should begin to develop innovative ways of improving internally generated revenue so as to improve provision of infrastructure within their domain.
Keywords: Federalism, Fiscal federalism, infrastructural development, road, federating units
