Political Economy of Oil-Revenue Sharing in a Developing Country: Illustrations from Nigeria

 
Author/Editor: Ahmad, Ehtisham ; Singh, Raju
 
Publication Date: January 01, 2003
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: Control over natural resource revenues is a contentious, politically divisive issue in most developing countries-especially for oil production. A typical policy response of the center in such cases has been to introduce revenue sharing arrangements. Such measures have generally not assuaged the aspirations of the oil-producing regions and have exposed them to volatility in their revenue flows that they are generally unable to cope with. An alternative is to assign more stable revenue bases to the regional administrations, together with a general-purpose transfer system that incorporates a floor. This acts as an insurance mechanism for the regional administrations and facilitates the stable provision of public services in the oil-production regions, as well as the possibility of redistribution. We use the recent history of oil-revenue sharing in Nigeria to illustrate the propositions.
 
Series: Working Paper No. 03/16
Subject(s): Political economy | Oil revenues | Nigeria

Author's Keyword(s): Intergovernmental fiscal relations
 
English
Publication Date: January 01, 2003
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA0162003 Pages: 26
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
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