Federalism in the Covid 19 period and beyond

Nigeria, a three-tiered federation, provides an intriguing example of how the 2008 and 2016 global financial crises, as well as the COVID-19 crisis, have had a significant impact on the practice of federalism in the country. These crises precipitated severe global economic downturn, and Nigeria was not exempt, putting the country's fiscal system to the test. As a significant oil exporter, Nigeria was impacted by the global oil price decline of 2008. Similarly, the 2016 financial crisis, which was precipitated by falling oil prices, exacerbated Nigeria's struggling economy, as the federal government struggled to maintain its expenditures, resulting in a reduction in revenue allocations to the states of the federation. Nigeria’s oil-generated revenue is exclusively concentrated in the centre and shared among the three levels of government according to some agreed formula. The COVID-19 pandemic revealed additional flaws in Nigeria's federal system, highlighting the disparate crisis response capabilities of states and local governments. In its attempt to manage the pandemic, the federal government adopted a top-down strategy, illustrating the overcentralised character of the federal system, which is the result of decades of military rule and excessive oil dependence. The management of these crises reignited the debate about the efficacy of federalism in Nigeria, and this article is a contribution to that debate, contending for a non-centralised federal system in which state governments cease to operate as extensions of the federal government. In addition, it argues for fiscal federalism in accordance with the federalism principle requiring each level of government to have the financial capacity to operate independently.