FISCAL RESPONSIBILITY AND THE ALLOCATION OF NATIONAL REVENUE: A COMPARATIVE ANALYSIS IMPLICATIONS FOR EFFECTIVE NATION BUILDING IN NIGERIA AND SELECTED ECONOMIES

Abstract

Fiscal responsibility and equitable national revenue allocation are foundational prerequisites for sustainable nation building in resource-dependent developing economies. This paper examines these interrelated constructs in Nigeria, combining qualitative content analysis with quantitative fiscal data from the Central Bank of Nigeria, Debt Management Office, Budget Office of the Federation, and international organisations including the IMF, World Bank, and OECD. Nigeria's debt-service-to-revenue ratio reached 96.4% in 2023, signalling an acute fiscal crisis that severely constrains developmental capacity. Revenue distribution across the three tiers of government systematically disadvantages subnational governments. Grounded in fiscal federalism, public choice, agency, and stewardship theories, and drawing comparative insights from Norway, South Africa, Ghana, and Kenya, the study finds that weak fiscal institutions, political interference, poor enforcement of fiscal laws, and an over-centralised revenue allocation system remain the major structural impediments to effective nation building in Nigeria. The paper proposes targeted, feasibility-assessed policy reforms spanning legislative, institutional, and digital governance dimensions.