Our Reporter
State governors have cried out for a revised revenue allocation formula that would aid the federating units in meeting the expectations of their people.
Chairman of the Nigeria Governors Forum (NGF), Governor Kayode Fayemi, who spoke for the forum said the existing formula could be likened to a “tyranny of unfunded mandate.” The governors said the revenue distribution among the tiers of government does not reflect the realities of the responsibilities borne by the state governments.
We agree with the governors that this is not a time for states to rely on handouts stemming from the magnanimity of the government at the centre.
It is therefore imperative that the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) performs the primary role assigned it by the 1999 Constitution.
The body, acting in consonance with the National Assembly, has failed to periodically review the revenue distribution formula as envisaged by the grundnorm.
While the constitution theoretically invests so much responsibility on the Federal Government contrary to the underlying principles of federalism that recognises the state as the engine room of development in a federation, the reality is that the states fund basic education, primary health care and even rehabilitation of federal roads that fall within their states.
In addition, the burden of security has devolved heavily on them, with special security outfits established and funded by them. In addition, even the Nigeria Police is so grossly underfunded that, without support from the states, it would be unable to perform its role of guaranteeing security of lives and property, which is the primary purpose of government.
A return to the federalism structure worked out among the federating units just before independence has become imperative, as it is one reason why the RMAFC cannot tinker fundamentally with the constitution.
It is totally out of reality that 68 items of the legislative lists are exclusively reserved for the Federal Government, with agencies and departments created to service them. This has ensured inefficiency in the system.
All the constitutional conferences held at great cost under the Abacha regime in 1995, the Obasanjo administration in 2005 and the one held under the Jonathan government were unanimous in concluding that the structure is an obstacle to funding and operating the federation.
The existing formula of 52 per cent for the Federal Government, 26.72 per cent for the states and 20.60 for the local government councils has not helped matters.
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It has only led to frustration among the people who are too far from Abuja to confront the Federal Government and thus vent their spleen on the state governors.
Attempts to detach the state government areas from the states have so far been resisted by the governors who have ensured that the Local Governments-states Joint Account created for the purpose of disbursing funds to the third tier of government operates only in abeyance.
Elected officials of the local governments are willfully sacked by the governors while the ministries of local government and chieftaincy affairs in states routinely decide what the councils do.
It is obvious that the constitution is not working. Therefore, the ongoing efforts to review it must go far enough; otherwise we would be back to basics.
Under the Yar’Adua/Jonathan administration, governors set up a six-member committee to recommend an acceptable and workable formula that would reflect the existing realities of Nigeria.
The committee recommended that 35 per cent should be allocated the Federal Government, 42 per cent for the states, and 23 per cent for the local governments.
Since then, the RMAFC has not been able to forward a bill to the National Assembly in line with the states’ proposal or recommendations of the constitutional conferences.
We agree with former Central Bank of Nigeria governor, Professor Charles Soludo, that Nigeria must “innovate, compete or die”.
The only way to live is to review the ‘feeding bottle federalism’ in place and ensure that the states get what is due them, including retaining the Value Added Tax in their areas. So far, many of them have failed to generate revenue for their activities. It is time to be creative.
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