Effectiveness of fiscal federalism for poverty reduction in Nigeria: an analysis of federal and state governments’ expenditures

One of the sustained political and economic strategies that have been adopted by various countries over 3 decades to achieve desired level development is fiscal federalism. Through this strategy, levels government within an economy involved in pursuit reducing poverty overtime. The purpose study examine relationship between expenditure on reduction with respect federal state expenditures, respectively. employed auto-regressive distributed lag (ARDL) estimation technique establish long-run relationship, magnitude effect expenditures both short-run periods using time-series data for period 1981–2018. Results obtained indicate only has positive Nigeria. findings study, therefore, support need greater decentralization increase responsibilities strengthening revenue capability favor governments, giving achieving could be achieved through increased spending developmental projects.