TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

National Conference: Fiscal federalism not negotiable – Punch

The Citizen by The Citizen
May 19 2014
in Public Affairs, Uncategorized
A A
0
22
SHARES
734
VIEWS
Share on FacebookShare on Twitter

AS expected, the forces of reaction and retrogression that are well represented at the ongoing National Conference have wasted no time in rearing their heads. Their latest card is to oppose the attainment of true federalism by standing resolutely against fiscal federalism in a New Nigeria. Progressive forces at the summit should also stand firm: there can be no viable federal polity without resource control by the states.

Some reports emanating from the conference are depressing, though they are familiar. A committee co-headed by Ibrahim Coomasie, a former Inspector-General of Police, and Victor Attah, a former Akwa-Ibom State governor, has reportedly reached a deadlock over rational suggestions to restructure the country on the sound foundation of fiscal federalism based on control of resources located in their areas by the state governments. Short-sighted bigots and influence peddlers should not be allowed to frustrate our efforts to salvage the failing political entity called Nigeria.

A federal polity necessarily implies fiscal federalism by its major components. Nigeria’s development has atrophied precisely because of the absence of control over their natural resources by states. The 36 states that together with the Federal Capital Territory make up the federation today have been reduced to beggars, their representatives gathering every month at Abuja to share from a central pot. Only two states – Lagos and Rivers – can pay their workers without federal allocations, according to the Nigerian Bureau of Statistics.

But fiscal federalism, expressed through resource control, is the bedrock of a federal state. Defined as the control and management of resources by states and local governments from whose jurisdictions the resources are extracted, all federal states, from the United States to Canada, Australia, Brazil, Malaysia, Germany, Switzerland and India have it enshrined in their constitutions. Only Nigeria stumbles.

We were not always like this. The “road to perdition” started in 1966 when the military overthrew democracy and the 1963 Constitution and began a process of centralisation that has today made the country a federation only in name while operating in many respects like a unitary state. Nowhere is this more disastrous than in fiscal administration. Where the 1963 federal republican basic law granted extensive control over resources to the four regions, the subsisting 1999 Constitution and the 1979 Constitution after which it was patterned are federal deformities.

The results are glaring. Between 1946 when the Richards Constitution came into force in pre-independence Nigeria and subsequent constitutions, right up to the 1960 independence constitution and the superb 1963 basic law, fiscal federalism clauses that allowed the federating regions to control their resources, raise revenue and contribute to the centre saw consistent all-inclusive growth.

Under the law that allowed regions to retain 50 per cent of revenues earned from natural resources, contribute 30 per cent to the centre and 20 per cent shared among the regions, competition flourished. Each region defined its own priorities and developed according to its defined targets. Policies articulated made Nigeria to emerge as the second largest cocoa producer, largest groundnut producer, largest producer of palm kernels and major exporter of hides and skins, bauxite, tin, coal and timber. From almost zero level, there were in varying degrees at the regions, massive increases in school enrolment and literacy, infrastructure and a manufacturing sector began to take root.

In contrast to this, gradual centralisation began to take its constrictive toll from the early 1980s as more unviable states were created by successive military regimes and hamstrung by law from exploiting strategic resources outside farming. It is the historic duty of the national conference to return the country to the path of true federalism.

A country where component units gather with begging bowls to collect doles from the central government for their survival is not a federation. Even unitary states are every day devolving power and fiscal responsibilities to the regions. And for Nigeria, with its wide diversities in ethnicity, cultures, languages and faiths, only a federation or a confederation offers any chance of success as a sustainable polity. A former Vice-President, Atiku Abubakar, said recently that centralisation “killed our agriculture, local control of schools and promoted corruption.”

Delegates from the North, especially, are so fixated on oil revenues and care less of their region’s immense advantages in minerals and agriculture that they mistake resource control solely for revenue sharing. A federation is not about sharing revenues generated from a part; it is about creating wealth in all its parts. The conference should reject their bid to retain the subsisting rent-seeking, growth-inhibiting system that rewards indolence, false population figures and corruption, while stifling initiative and maximisation of natural resources and enriching a parasitic class.

Under the Canadian constitution, the provinces and federal government legislate on natural resources and the provinces have considerable control over their own natural resources. In the US, states have control over their resources and are subject only to federal taxes and laws on strategic resources.

Every part of Nigeria will benefit from fiscal federalism. Zamfara, for instance, will back resource control if it realises that it can earn up to $1 billion from exploiting its gold and other minerals; as will Nasarawa that has about 14 mineral types; or Enugu and Kogi with their coal, and Ondo with its bitumen.

For Nigeria to survive, the component units should be able to create wealth and jobs, while providing infrastructure and development. They cannot go far without fiscal federalism. Our position is that fiscal federalism must be the irreducible condition for Nigeria’s continued corporate existence.

Share9Tweet6
Previous Post

Kwara Gov denies alleged romance with PDP

Next Post

Give SWF Constitutional Foundation – Leadership

Related Posts

Escaping Nigeria’s looming debt trap – Punch
Public Affairs

Escaping Nigeria’s looming debt trap – Punch

February 20 2026
Tinubu denies Christian, Muslim genocide in Nigeria
Public Affairs

Pay local contractors – Punch

February 4 2026
Drug tests for public office aspirants, a must – Punch
Public Affairs

Drug tests for public office aspirants, a must – Punch

January 9 2026
Economy in 2026: From risk to recovery – Punch
Public Affairs

Economy in 2026: From risk to recovery – Punch

January 2 2026
FG launches digital platform to transition to paperless operation
Public Affairs

LGs: Executive Order opposes federalism – Punch

December 30 2025
US launches strikes against ISIS terrorists in Sokoto
Public Affairs

Implications of US air strikes in Nigeria – Punch

December 29 2025
Next Post

Give SWF Constitutional Foundation - Leadership

The forensic audit of NNPC – The Sun

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Cross River Assembly sacks LG vice chair over misconduct

Cross River Assembly sacks LG vice chair over misconduct

by The Editor
February 24 2026
0

...

Ogun State refutes Prince Kuye’s endorsement as Awujale of Ijebuland

Ogun State refutes Prince Kuye’s endorsement as Awujale of Ijebuland

by The Editor
February 22 2026
0

...

Umahi’s son Osborne, picks LG chairmanship form in Ebonyi

Umahi’s son Osborne, picks LG chairmanship form in Ebonyi

by The Editor
January 20 2026
0

...

Ogun State cancels Awujale selection process

Ogun State cancels Awujale selection process

by The Editor
December 18 2025
0

...

APPOINTMENTS

Rivers State not for political war, says Fubara

Fubara appoints new Chief of Staff, SSG

by The Editor
February 26 2026
0

...

Tinubu accepts Egbetokun’s resignation, names Tunji Disu acting IG

Tinubu accepts Egbetokun’s resignation, names Tunji Disu acting IG

by The Editor
February 24 2026
0

...

Tinubu confers GCON on business associate, Chagoury

Tinubu confers GCON on business associate, Chagoury

by The Editor
January 20 2026
0

...

FG targets Dana Air assets to refund trapped passenger funds

FG reshuffles NCAA directors amid corruption allegations

by The Editor
December 26 2025
0

...

ODDITIES

Nigerian nurse loses licence for sleeping during shift in Australia

Nigerian nurse loses licence for sleeping during shift in Australia

by The Editor
January 24 2026
0

Woman battling cancer seeks second wife for sex-starved husband

Woman battling cancer seeks second wife for sex-starved husband

by The Editor
December 27 2025
0

Man kills cousin over ₦1,000 burial refund in Delta State

Man kills cousin over ₦1,000 burial refund in Delta State

by The Editor
December 22 2025
0

GLOBAL NEWS

Saudi Arabia bans poultry, eggs from Nigeria, others over health concerns

Saudi Arabia bans poultry, eggs from Nigeria, others over health concerns

by The Editor
February 25 2026
0

...

Russian spy agency takes over Wagner operations in Africa

Russian spy agency takes over Wagner operations in Africa

by The Editor
February 21 2026
0

...

Trump rules out contesting for vice president to stay in power after 2028

Trump hikes US global tariff rate to 15%

by The Editor
February 21 2026
0

...

Gabonese Presidency defends social media shutdown

Gabonese Presidency defends social media shutdown

by The Editor
February 21 2026
0

...

Iran vows resistance amid US nuclear talks

Iran vows resistance amid US nuclear talks

by The Editor
February 21 2026
0

...

State of the States

Lagos shuts Lekki–Epe Expressway for repairs

Lagos shuts Lekki–Epe Expressway for repairs

by The Editor
February 26 2026
0

...

Gov. Zulum approves N12.9bn aeronautics scholarship for 54 Borno students

Gov. Zulum approves N12.9bn aeronautics scholarship for 54 Borno students

by The Editor
February 21 2026
0

...

Ogun: Royal houses reject candidate for new Olowu

Residents protest as bandits attack Ondo community, abduct couple

by The Editor
February 21 2026
0

...

Labour leaders hail Gov. Mbah after consultative meeting as new welfare packages excite workers

Labour leaders hail Gov. Mbah after consultative meeting as new welfare packages excite workers

by The Editor
February 18 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Disu declares total war on police corruption, impunity

Disu declares total war on police corruption, impunity

February 26 2026
Lagos shuts Lekki–Epe Expressway for repairs

Lagos shuts Lekki–Epe Expressway for repairs

February 26 2026
Lagos refers Simi’s resurfaced tweets to police for probe

Lagos refers Simi’s resurfaced tweets to police for probe

February 26 2026
Senate asks Tinubu to sack CAC boss

Senate asks Tinubu to sack CAC boss

February 26 2026

EDITORIAL REVIEW

Escaping Nigeria’s looming debt trap – Punch

Escaping Nigeria’s looming debt trap – Punch

by The Editor
February 20 2026
0

Tinubu denies Christian, Muslim genocide in Nigeria

Pay local contractors – Punch

by The Editor
February 4 2026
0

Drug tests for public office aspirants, a must – Punch

Drug tests for public office aspirants, a must – Punch

by The Editor
January 9 2026
0

Economy in 2026: From risk to recovery – Punch

Economy in 2026: From risk to recovery – Punch

by The Editor
January 2 2026
0

FG launches digital platform to transition to paperless operation

LGs: Executive Order opposes federalism – Punch

by The Editor
December 30 2025
0

Opinion

SEC explains licence grant to two crypto exchanges in Nigeria

New cryptocurrency tax regime in Nigeria

by The Editor
January 20 2026
0

...

Air Peace pledges free evacuation, medicals for trafficked Nigerian girls in Ivory Coast

No, Nigerian airfares are not the cheapest

by The Editor
December 29 2025
0

...

Tax document fraud: Governance and trust deficit

Tax document fraud: Governance and trust deficit

by The Editor
December 22 2025
0

...

Peter Mbah’s visionary leadership and the rebirth of security in Enugu State

Peter Mbah’s visionary leadership and the rebirth of security in Enugu State

by The Editor
December 8 2025
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.