True Federalism and Resource Control Page 1 of 3

True Federalism and Resource Control

by

Michael Denila

Federalism, as practised in today, is a far cry from what true federalism represents. As the nation awakens to the realities of its ethnic, religious, political diversities and corporate existence, the structure of her federalistic claims has to be revisited and refocused.

True federalism in the real sense of the word promotes accelerated economic development, it unifies and binds people together, it triggers intellectual dialogue and provokes a healthy rivalry in revenue generation. These laudable goals are only achieved where the federating units are allowed free access in decision making and inputs into governance.

Federalism, as practised in Nigeria today, is likened to a lion chasing an antelope and squeezing out life from it (the lion represent the Federal Government while the antelope represents the states government). The federal structure of Nigeria today is a gross anomaly. This present structure has positioned itself as an octopus firmly gripping the federating units with its poisonous clutch and constantly dictating its destiny.

Nigeria, at independence, embraced regionalistic federalism. The country was grouped into regions. Each region operated independently without undue interference and hindrance from the top. This system provided dynamism in economic development. The reason being that they mobilised their human and material resources in revenue generation. Each region identified its area of strength and developed a marshal plan of human capacity building which resulted in a high pool of intellectual resource contributors and a highly skilled national strength. The region, under our founding fathers, experienced massive infra structural facelift, excellent facilities and an enviable macro and micro-economic policies.

They generated their revenue independently which was ploughed back in developing their regional economies. This system gave everybody a sense of duty and belonging. There were willingness in contributing to their regional economies. Nigeria witnessed growth in every facet - this period marked true federalism in display. What obtains today is a mockery of the old order. Why must we claim to be a federalistic country when virtually all rules and decisions are being dictated from the top? Why was the old order of regional governance and unfettered federalism abandoned? This could be largely attributed to the discovery of crude oil and the military incursion into governance.

The military gained access to power in Nigeria. The military tasted the new oil wealth and quickly devised ways of consolidating their grip on power. They mortgaged the new oil wealth and began squandering its proceeds on excess materialism. The productive and result-oriented regional structure of government was replaced with unitarism. Control of crude oil resources and its attendant benefits were hijacked to the centre. The oil money was controlled from the very top to satisfy selfish ends to the detriment of the people whose land are being desecrated and desolated in the process of oil exploration. The true concept of resource control and true federalism was jettisoned by the military and a few individuals who strategically positioned and aligned themselves to continually benefit from the oil wealth.

http://www.nigerdeltacongress.com/tarticles/true_federalism_and_resource_con.htm 7/18/2008 True Federalism and Resource Control Page 2 of 3

Unitarism as a system encourages divide and rule. Extreme corrupt practises and mismanagement of funds became the norm because there was no effective method of checks and balances. The Niger Delta area became restless and riotous; volatility became the order of the day, oil wealth generated from this region were used in servicing other areas of Nigeria whereas the original land owners where oil is drained were left to the mercy of elements.

The agitations of the Niger Delta citizens is based on the insensitivity and neglect of the government towards their plight and its inability of providing a technical master plan for the development of the area. Their land has been defaced and despoiled and oil money produced from it is being controlled by a greedy few who have formed a powerful untouchable clique.

It is expected that with our new found democracy, a restructuring of the body polity would be revisited. Apparently, the Federal Government, led by President Olusegun Obasanjo, greatly favours the old school and has refused to accommodate agitations for reforms. More power is being arrogated to the top and because of the apparent agreed of government officials and their appointees they have consistently resisted the move to true federalism and resource control.

True federalism and resource control by states are the surest ways of pulling Nigeria out of the woods. It will guarantee a wider participation in government and promotes a greater unity and prosperity for Nigeria. The northern governors have refused to join issues with their southern counterparts in their quest for resource control. The governor of , Alhaji Mala Kachalla, has risen against calls for resource control. "I caution everybody to tread carefully," Kachalla warned. Kachalla's position on this matter clearly shows he's bereft of good understanding and insights on what resource control and true federalism offer his state. In fact, most of the northern governors argue that they are lacking in resources and implored the south not to be selfish with the oil God deposited in their soil since the constitution of Nigeria does not favour their claims and demands. Northern governors' position on this matter, to say the least, does not attract any objectivism.

Resources abound throughout the north. Large deposit of industrial minerals abound in . thrives in rich flora and fauna and a highly tourist potentials. Kano, Katsina and Sokoto axis is richly endowed with agricultural products. The northern states that are classified as disadvantaged in mineral resources could form a group alliance and fiscal sharing formula with the more richly endowed states in benefiting and exploiting the resources available in those areas. This kind of arrangement is the beauty of what true federalism will bring about. It creates a forum for dialogue and understanding among communities. When the north faces this challenge squarely and identifies the resources with which it intends using in running their governments, overwhelming realities of true riches and potentials will spring up. The international value of the resources available in the north runs into billions of dollars annually. The problem with the north is the apparent lack of understanding on how a truly federally operated structure works. Crude oil is not the only dollar-spinning resource available in Nigeria. If crude oil could be de-emphasised and other states are encouraged to look more inwards in harnessing their other resources, we will discover countless and abounding riches that will launch Nigeria into a force to be reckoned with among committee of nations.

The governor of , Alhaji , in one of his recent statement, kicked against true federalism in Nigeria. He argued that true federalism with greater autonomy granted to states could lead to Nigeria's disintegration. On another occasion, he contradicted himself by declaring that "the north will be able to survive on its own, resource control or no resource control." From which ever angle Alhaji Aliero is aligning, he should realise that it is only with the practice of true federalism in Nigeria that the north will be able to stand on its own. He should not be an opponent of true federalism and a proponent of the north standing on its own with or without resource control. He should substantiate his convictions on these issues in a wider forum of discussion. True federalism is the panacea that will awaken the north from its doldrums and resource control by states the tonic that will act as the best catalyst for unification of all Nigerians.

http://www.nigerdeltacongress.com/tarticles/true_federalism_and_resource_con.htm 7/18/2008 True Federalism and Resource Control Page 3 of 3

The Federal Government is trafficking in too much powers and excessive oil wealth which is currently choking the system. It has no effective control on corruption because of its unitarist disposition. As corruption thrives in great proportions and dimensions, development efforts do not reach the grassroots and the masses. Sycophants, advisers and bootlickers in government muscle the national wealth to themselves for excessive personal gains while remnants are handed to the states with the insignia of "revenue allocation." Government neglects where the shoe pinches and the area that has the highest pulse rate that is in dear need of development.

In countries where true federalism obtains, the Federal Government has no business in dragging resources with the federating units. In the United States of America, for example, the Federal Government in Washington has no business with what Texas State does with its oil. Oil is explored by Texans and the proceeds used to develop their state. Same goes in the United Kingdom, Canada and Australia. Why should Nigeria not follow suite?

Governor 's arguments of true fiscal federalism in his "Critical Issues" series is a step in the right direction. He argued that it is utter ridiculous and unjust for more than 80 per cent of VAT proceeds to be spent outside the state which generated the same percentage. Fiscal federalism is a critical issue, indeed, and a way of balancing fiscal policies based on justice, equity and fairplay should be the current advocacy. True fiscal federalism will enable the federating units to develop its power supply, plan for its educational and petroleum needs and project a better planned economy for themselves.

Fears need not arise in the minds of Alhaji Adamu Aliero and Alhaji Mala Kachalla of Nigeria's disintegration. The north should brace up to the challenges of a more unified Nigeria endangered by true federalism and resource control. Southern governors should be fiercer and more aggressive in this campaign, most especially through legislative means. Since most of the developmental efforts of President Obasanjo has failed, it is imperative at this juncture for a political and structural emphasis shifts. True fiscal federalism and resource control, no doubt, present a new dawn for Nigeria.

http://www.nigerdeltacongress.com/tarticles/true_federalism_and_resource_con.htm 7/18/2008