SUBNATIONAL GOVERNANCE AND SOCIO-ECONOMIC DEVELOPMENT IN A FEDERAL POLITICAL SYSTEM: A CASE STUDY OF STATE, NIGERIA. SO Oloruntoba University of Lagos

ABSTRACT

The main objective of any responsible government is the provision of the good life to citizens. In a bid to achieve this important objective, political elites or exter- nal powers (as the case may be) have adopted various political arrangements which suit the structural, historical cultural and functional circumstances of the countries conerned. One of such political arrangements is federalism. Whereas explanatory framework connotes a political arrangement where each of the subordinate units has autonomy over their sphere of influence. Nigeria is one of three countries in Africa, whose federal arrangement has subsisted since it was first structured as such by the Littleton Constitution of 1954. Although the many years of military rule has done incalculable damage to the practice of federal- ism in the country, Nigeria remains a federal state till today. However, there are concerns over the ability of the state as presently constituted to deliver the com- mon good to the people. Such concerns are connected to the persistent high rate of poverty, unemployment and insecurity. Previous and current scholarly works on socio-economic performance of the country have been focused on the national government. This approach overlooks the possibilities that sub-na- tional governments, especially at the state level holds for socio-economic de- velopment in the country. The point of departure of this article is to fill this lacuna by examining the socio-economic development of , especially since 1999. The choice of Lagos state as the unit of analysis is informed by its central position as the economic nerve centre of Nigeria, the strides that have been recorded in socio-economic development over the past seventeen years and the nature of politics in the state versus the national government, at least up till 2015. A focus on sub-national unit of the Nigerian federation is particularly critical at this period in the life of the nation when divergences in centripetal and cen- trifugal forces continue to threaten the corporate existence of the country. The geographical differences in terms of poverty and inequality level between the North and the South also lend credence to a study of this nature, with the hope that lessons on leadership style (exemplified by modes of succession and quality of leadership), civic duty of citizens and resource mobilisation can be learnt by other sub-national units of the federation.

Keywords: Federalism, Governance, Protectorates, Political elites

76 Journal of Public Administration and Development Alternatives Vol. 1 No.2 December 2016 1. INTRODUCTION tralised system has been blamed for the variety of problems that confront The amalgamation of Southern and the country today such as insecurity, Northern Protectorates of Nigeria by conflicts, poverty, and intra-group dis- be British colonial power in 1914 creat- unity which pose permanent threat to ed the largest single political entity in its continued corporate existence. For Africa (Adedeji, 2012). The sheer size instance, as Adamolekun (2005 cited of the country both in terms of geo- in Suberu 2010:459) laments, ‘the Nige- graphical spread and population; the rian federalism is at a cross-roads and heterogeneity of its peoples, the dy- has two options: devolution or death’. namism of its centripetal and centrif- ugal forces and the need for stability There have also been concerns from motivated the nationalist leaders to the international intelligence commu- negotiate a federal political arrange- nity that given the various conflicts ment with the departing colonial lead- and flashpoints such as Jos, Plateau ers (Jinadu, 1985). Although, the Brit- state, insurgency in the -Delta, ish colonial government effected the the Boko Haram campaign of terror amalgamation of the northern and against the Federal Government in the southern protectorates for its admin- Northern part of the country, the ten- istrative convenience, federalism was dency towards destabilisation is very seen as the best appropriate political high in the country (International Crisis framework for sustainable and mutu- Group, 2006). The dysfunctional pub- ally beneficial existence by the various lic institutions, high rate of corruption nationalities that make up the country. and lack of capacity to carry through many ill-thought out development pro- Federalism in Nigeria has passed grammes have combined to ensure through various phases and transfor- that more than half of the country’s mations. Despite the strains and the estimated 160million people still live on stress that are inherent in its adoption, than less one US$ per day (NBS, 2011). it has endured till today (Suberu, 2010). Nigeria’s federalism is a unique one Nigeria operates three tier-level fed- whose existence and sustenance is to eralism, with one central government, a large extent dependent on a single 36 states and 774 local governments resource; oil (Olukoshi, 2003, Obi, 2002). and a federal capital territory. As a mono-cultural and structurally disartic- While early post-colonial leaders at- ulated economy, most of these units tempted and indeed, succeeded in of government can only survive on the applying fiscal federalism, based on allocations that the central govern- the principle of derivation in Nigeria’s ment shares with them. The 1999 con- first republic from 1963-1966, the many stitution upon which the fourth republic years of military rule led to increased is based ensures that ‘revenues in the centralisation of power and exces- Federation Account are distributed sive control of the nation’s resources vertically in the proportions of 48.50%, by the central government. The cen- 26.72%, 20.60% and 4.18% to the fed- SO Oloruntoba 77 eral government, states, localities, and at this period in the life of the nation centrally controlled special funds, re- when divergences in centripetal and spectively’ (Suberu, 2010:467). Despite centrifugal forces continue to threaten the huge resources being allocated the corporate existence of the coun- to all levels of government, Nigeria still try. The geographical differences in occupies one of the lowest levels in the terms of poverty and inequality lev- global charts for measuring socio-eco- el between the North and the South nomic progress (See UNDP, 2013). also lend credence to a study of this nature, with the hope that lessons on Consequently, there are concerns leadership style, vision and citizens and over the ability of the Nigerian state resource mobilisation can be learnt by as presently constituted to deliver the other sub-national units of the federa- common good to the people. Such tion. concerns are connected to the per- sistent high rate of poverty, unem- What is responsible for the high level ployment and insecurity. Previous and of transformation that is currently go- current scholarly works on socio-eco- ing on in Lagos State in terms of pol- nomic performance of the country itics-policy mix, leadership character- have been focused on the national istics or party ideology? What are the government. This approach overlooks strategies that have been adopted to the possibilities that sub-national gov- achieve such levels of transformation ernments, especially at the state level and what the social costs are in terms holds for socio-economic develop- of dislocations and adjustment to the ment in the country. changes? A theory of multi-level gov- ernance and fiscal theories of state The point of departure of this arti- are adopted while secondary data cle is to fill this lacuna by examining was used for analysis. the socio-economic development of Lagos State, especially since 1999, After this introduction, the rest of this when Nigeria returned to democratic article proceeds as follows: present- governance. Lagos State has been ing the extant literature on federalism an exception to the rot in Nigeria as as an ideal form of government for a the state has witnessed massive turn polyglot and heterogeneous country around in the areas of infrastructural like Nigeria. Examining the relationship development, job creation, increased between federalism and sub-national institutional capacity for service deliv- governance is also examined in this ery, security and social re-engineering. section. The choice of Lagos State as the unit of analysis is also informed by its central Analysing, the performance of Nige- position as the economic nerve centre ria’s federalism in terms of socio-eco- of Nigeria. nomic development, interrogating Lagos State as a sub-national unit A focus on sub-national unit of the Ni- within the Nigerian federation and the gerian federation is particularly critical socio-economic development that is

78 Journal of Public Administration and Development Alternatives Vol. 1 No.2 December 2016 taking place in the state, especially the state or local governments. since 1999, its challenges, strategies and outcomes. And conclude by rec- A Federal system of Government is ommending other sub-national units usually adopted by countries with di- within the Nigerian federation. verse nationalities such that the inter- ests of the diverse units are adequate- 2. FEDERALISM ly taken care of. For instance, with the particular case of Nigeria, Jinadu Federalism has been defined by vari- (1985:73) has argued that ‘Federalism ous scholars as political arrangements as a system of concurrent regimes … where the various subunits that make developed in Nigeria in response to up a country are in each of their re- problems of governance created by spective spheres of influence semi-au- this ethnic configuration (and that) it is tonomous (Wheare, 1963). Carl Frie- deliberately structured to provide the drich (1968:6 cited in Gana, 2003)) legal superstructure within which the defines a federation as ‘a union of various ethnic fractions of the politi- group selves, united by one or more cal class seek access to state power, common objectives but retaining their with a view to controlling or influenc- distinctive group being for other pur- ing its exercise’. While the explanation poses. Federation is, on the inter-group above may be true to some extent, the level, while association is on the in- overriding objective for the introduc- ter-personal level. tion of federalism in Nigeria was the need for administrative convenience It unites without destroying the selves of the colonialists. Examples of coun- that are uniting, and it is meant to tries that are practicing federalism in strengthen them in their mutual rela- the modern world include Australia, tions. Suberu (2009:68) defines a fed- Canada, Brazil, United States of Amer- eration as a ‘polity that is divided into ica, Switzerland, India and Nigeria. territorial sub-units that enjoy constitu- Federal States usually have different tionally entrenched autonomy in some levels or tiers of government. Sequel to poly-making domains as well as repre- the constitutional requirements for the sentation within the machinery of the division of powers in a federal system polity-wide government’. is the presence of sub-national units of government. This can be in various The main distinguishing feature of fed- forms such as province, regions, state, eralism from either a unitary state or a districts, local government or county. nonfederal one is the power that the Nigeria operates a three tier structure constitution grants to the sub-national of government, which are the central, units of government. Such constitu- state and local governments. tional empowerment demonstrates joint-ownership and shared responsi- 3. SUB-NATIONAL GOVERNANCE bility. It shows complementarity rather than subservience in the relationship Sub-national governance is gover- between the central government and nance at the level below the na-

SO Oloruntoba 79 tion-state. It is important to state that and international agencies such as the while government is associated with World Bank, National Office of Statistics the nation-state, ‘the term governance and United Nations Development Pro- is used here to describe a model in gramme and so on are usually based which social functions and processes on national studies. One of the theories are performed and implemented in that have been used to explain the re- different ways, by a variety of actors lationship between sub-national units and at different levels’ (Happaets, Van of government and the central gov- den Brande and Bruynincks, 2011:324). ernment is the fiscal theories of state. The role of subnational governments For instance, using this theory, Gerva- is significant for two reasons. First, they son (2010:302) posits that: Sub-nation- are often responsible for the imple- al regimes are to a large extent ex- mentation of national and internation- plained by the magnitude and origin al policies with regard to socio-eco- of their fiscal resources. nomic development (Jörgensen 2007: 156; OECD 2001a: 51; 2002a: 19). Sec- Low levels of democracy are to be ex- ond, they are said to be closer to citi- pected where sub-national states en- zens and stakeholders, which is vital for joy plentiful central government sub- socio-economic development of any sidies and have a weak tax link with country (Baker et al. 1997: 22). Berger local citizens and business. and Steurer (2008: 32) therefore con- sider sub-national entities as the ideal Gervason states the obvious that in re- level to tackle problems related to so- source rich countries, sub-national units cio-economic development. often receive generous national subsi- dies and collect modest tax resources A study of sub-national governance is (Gervason. 2010). While this theory is important because of the paucity of true to a very significant extent with re- studies on this level of governance. The spect to many states in Nigeria, Lagos neglect of studies on sub-national gov- State is an exemption to this theory in ernance has been noted by Gervason many respects. (2010:302) who argues that not much attention has been paid to this area First, although the State receives of study. Yet, it is at the sub-national monthly allocation from the Federal level of governance that the actions Government like any other State in or inactions of government should be the Nigerian federation, its economic closely examined. viability and social responsibility to the state has been determined largely by Most analysis on the actions or inac- the high internal revenue based, espe- tions of political actors on designing cially since 1999. appropriate strategies for socio-eco- nomic development has been con- centrated at the central level (Fayemi, 2013). Consequently, development in- dicators on Nigeria from both national

80 Journal of Public Administration and Development Alternatives Vol. 1 No.2 December 2016 Tables 1 show the volume of internally generated revenue from Lagos State and allocations from the Federal Government from 2008-2012.

2 0 0 8 2 0 0 9 2010 NGN’ 2011 NGN 2 0 1 2 N G N ’ M i l - N G N ’ Millions ‘Millions NGN’ Mil- lions Millions lions IGR 101,178 139,142 148,445 168,132 166,516 IGR Others 27,306 36,270 29,139 36,829 56,235 VAT 32,165 39,960 47,287 57,021 66,104 FAAC 49,777 42,426 48,213 61,806 61,395 Total Revenue 210,246 257,798 273,084 323,788 350,250 Source: Lagos State Government

From table 1 above, the Internally Generated Revenue of Lagos State was con- sistently higher than the allocation from the Federal Government. For instance, Lagos State share of federal revenue in 2008 (VAT +FAAC) was about #81billion while the internally generated revenue for the same year was about #128billion. In 2012, the Internally Generated Revenue in the state was well above #200billion. The capacity to generate revenue and manage it prudently is a far departure from what it obtains at the national level, where oil rents still constitute the larg- est chunk of the federal government ly denied, led to the unconstitutional revenue. Although the Federal Inland withholding of Federal Allocation to Revenue Service has improved its ca- Lagos State by Olusegun Obasanjo pacity for tax collection, the degree of who served as the President of Nige- prudence in managing the collected ria under the banner of the People’s tax is another issue entirely. Democratic Party from 1999-2007. Notwithstanding the fact that Lagos Second, Lagos State has been under state was denied access to its share of the control of opposition party under federal allocation for more than three various names such as the Alliance years, it survived until the money was for Democracy, Action Congress, Ac- released by the instruction of the late tion Congress of Nigeria and now All President Yar’adua in 2007. Progressive Congress. The State Gov- ernment drew the ire of the Federal Third, contrary to the argument of the Government when in 2002, the then fiscal theory of state that citizens are Governor government cre- generally detached from the gover- ated additional 37 Local Government nance at the sub-national level due to Areas. The controversy and the legal the lack of binding commitment to the tussle that followed this decision, which State in form of taxation, Lagos State is is constitutionally allowed but political- a hotbed of civil society activism. The SO Oloruntoba 81 large volume of Internally Generated that it has been extremely difficult for Revenue shown above is largely at- opposition parties to win any election tributed to the high level of tax com- in areas that are considered as the pliance in the State. In order to ensure strongholds of the ruling party (APC), high level of compliance and to se- such as Alimosho Local government cure the cooperation of the citizens, area of Lagos State raises some ques- the former Governor Raji Fashola regu- tions on the overall credibility of elec- larly organised meetings with members tions in Lagos State. For instance, this of the organised private sector (OPS) author is aware of the case involving and engaged in 100 days’ media chat Mr. Segun Adewale who contested for in which he briefed the citizens of the election to the Lagos House of Assem- state on how the revenue collected bly under the in 2007 and was dispensed. to the Federal House of Representa- tives under the PDP in 2011 and 2015, The fiscal theories of state also hold respectively. that provinces that are well-endowed resource wise or that received so much In an informal discussion with him, he allocation from the central govern- disclosed how the elections were ment are usually detached from their rigged against him. Due to his pop- constituents, muzzling opposition and ularity and mass-base support in the suffer from democratic deficit (Ger- Alimosho Local Government area of vason. 2010). While this assertion may the State, it was also assumed that he be true in some instances, the case of won the elections-at least by his per- Lagos State is different. As mentioned sonal account and those of the peo- above, there is a high level of connec- ple who witnessed the elections. How- tion between the government and the ever, he was not declared the winner. citizens through regular media brief- His attempts to get justice from the ings, town hall meetings and active electoral tribunals were not successful. social intervention programmes. The In frustration, he told this author that assumption that opposition political he is quitting politics as it is almost im- parties are muzzled in such a resource possible to win an election under the rich state like Lagos may also not be opposition party in the State. Although entirely correct. his account may be personal, the fact that the ruling party in Lagos State has In the various elections that have been been winning almost all the positions in held in the State since Nigeria returned the various elections in the State may to democracy in 1999, opposition po- seem to validate the theory as enunci- litical parties have been allowed to ated above. One may argue though, campaign for votes without molesta- that the victory of the ruling party in tion from the State government. In the the State may be on account of the general elections of 2015, the opposi- performances of the elected officials. tion political party (PDP) won several seats both to the state and national The relationship between the Federal houses of assembly. However, the fact Government and other sub-national

82 Journal of Public Administration and Development Alternatives Vol. 1 No.2 December 2016 units within the federation are defined the country stands out in its ability to by the constitution. The constitution contain large scale disintegration and spells out the functions of each level of internal disorder that have been the government and provides the basis for lot of other federal experiments on the resolving conflicts that may emanate continent. He attributed the ‘success- from performing such functions. As Ji- es’ to the unique structure of Nigeria’s nadu (1985) argues, the relationship federation, which has gone through that exists between the central gov- some changes in form of creation of ernment and the sub-national units of states and local governments since government in a country like Nigeria 1960 (Suberu, 2009). But one may wish was a response to the polyglot and to ask the question that at what costs heterogeneous nature of the Nigerian to the socio-economic development society. The various mechanisms such and improvement in the living con- as affirmation action in form of con- ditions of the people has the country sideration for Federal Character in ap- been kept together as one political pointment for jobs or political offices, entity? zoning formula and rotation of elective offices between North and South and Despite being the eight largest export- among the various ethnic groups in er of petroleum in the world, Nigeria, in the country are clear manifestations of the words of Adebanwi and Obadare the understanding of the architects of (2010) remains a nation in narration. It the Nigerian state to ensure equity and is a country mired in the contradictions political stability in the country. of poverty in the midst of plenty, want in the midst of abundance, suffering 4. SOCIO-ECONOMIC DEVELOPMENT in the midst of surplus. Acute gover- IN NIGERIA AND INDICATORS nance deficits, which manifest in un- trammeled and unconscionable de- The performance of Nigeria’s federal- gree of corruption, lack of willingness ism has been an issue of scholarly de- to implement policies to the benefits bate. While some scholars believe that of the majority of people, political and the country has failed to live up to its bureaucratic ineptitude and a certain huge potentials in terms of improve- sense of spineless acquiescence to the ment in living conditions of the people, logic of primitive and private accumu- (See Adamolekun, 2005, Adebanwi lation under neo-liberal based global and Obadare 2010), some believe capitalism have kept the of country that the country has performed well among low development groups of at least in terms of its political survival country (UNDP, 2013, Ihonvbere, 1989). as a single indivisible entity more than Although by the logic of global capi- fifty years after gaining political inde- talism in which economic growth has pendence (Suberu 2010, 2009). For been substituted for development, Ni- instances, Suberu (2009) compared geria has been classified as a Middle Nigeria with other federations in Africa Income country by the World Bank such as Democratic Republic of Con- and was regarded as one of the fast- go and Sudan and concluded that est growing economies in Africa until SO Oloruntoba 83 the recent collapse in the prices of crude oil (Economist, 2011), The rate of pov- erty in the country is still as high as 61 per cent (NBS, 2013)

Regionally, the Northern parts of the country are even worse as some of them have poverty rate of as high as 72 percent. The rate of unemployment is as high as 23 percent, while it is much higher among the youth (NBS, 2011). As Table 11 below shows, Nigeria was categorised alongside landlocked countries like Mali, Niger, Chad, Liberia and others as Low Development countries by the United Nations Development Programme (UNDP, 2013).

Table 2: Human Development in Africa

Very high and high hu- Medium human Low human development man development development Algeria Botswana Angola Liberia Libya Arab Jamahiriya Cape Verde Madagascar Seychelles Egypt Burkina Faso Malawi Tunisia Equatorial Guinea Burundi Mali Gabon Cameroon Mauritania Ghana Central African Rep Niger Morocco Chad Mozambique Namibia Comoros Nigeria South Africa Congo Rwanda Swaziland Congo Democratic Rep. Togo Cote d’Ivoire Sudan Djibouti SaoTome & Principe Eritrea Senegal Ethiopia Sierra Leone Gambia Tanzania Guinea-Bissau Uganda Kenya Zambia Lesotho Zimbabwe Source: UNDP (2013).

Centralisation of power at the centre has produced concentration of corrup- tion with negative multiplier effects at the other levels of government. Despite billions of dollars already expended on roads and generation of electricity, these infrastructures remain in disarray as road accidents and irregular power supplies remain the perennial experience of the country over the years. It is the context

84 Journal of Public Administration and Development Alternatives Vol. 1 No.2 December 2016 of these contradictions of abundance tractive place for both business, skilled and penury, surplus and lack in the as- professionals looking for jobs and other sessment of the central government categories of people. that the socio-economic transforma- tions going on in Lagos State since 4.2 Political and Governance of Lagos 1999 are specifically examined below. State: 1999-2013 How has Lagos State been able to achieve such a high level of infrastruc- Since the return to democratic gover- tures renewal, break new grounds in nance in 1999, Lagos State has been education and have been regular in governed by opposition parties under payment of wages and salaries to its different names such as the Alliance workers without default? for Democracy, Action Congress, Ac- tion Congress of Nigeria and now All 4.1 Socio-Economic Transformations in Progressive Congress (APC). Although Lagos State: 1999-2013 the names of the parties might have changed, with the exception of the Lagos State was created in 1967 by former Alliance for Democracy, the the military government under Gen- personalities behind these parties eral Yakubu Gowon. It is located in have not changed much. One of the the Southwestern part of Nigeria. As a leading political figures in the opposi- mega city in the making, it is home to tion parties is Senator Asiwaju Ahmed people from all ethnic groups from dif- Bola Tinubu. He was Governor of Lagos ferent parts of Nigeria and neighbour- State from 1999 to 2003. He was the ing countries. Until the military govern- only Governor who survived the ‘vol- ment of General Babangida relocated canic’ onslaught of the ruling People’s the administrative headquarters of Ni- Democratic Party against the South- geria to in December 1991, La- western states in 2003. gos State was the political capital of Nigeria. To a great significant extent, Asiwaju Ahmed Tinubu laid the foundation for Despite the relocation, it remains the the transformation taking place in La- economic nerve centre of the country gos State today in terms of infrastruc- as it boasts of three seaports, an inter- tures, revenue generation and gov- national airport and a road linkage to ernance. On revenue generation for neighboring African countries such as instance, Asiwaju Ahmed Tinubu built Benin Republic, Togo and Ghana. The on the legacy of the military in using head office of major Banks and mul- consultants to collect revenue from tinational corporations in Nigeria are corporate organisations. Although this also located in the state. Its unique has been criticised as being undemo- location and its sprawling population cratic, the State has been able to im- which is estimated at about 11.2 million prove significantly on its Internally Gen- people in 2011 (UN, 2011) but estimat- erated Revenue over the past fourteen ed by the New York Times at 21 million years. According to Campbell, (2013), in 2012 (Campbell, 2012) make it an at- tax revenues now exceed $92m per

SO Oloruntoba 85 month, up from $3.7m per month in 4.3 Socio-Economic Development in 1999. The decision of the Federal Gov- Lagos State from 1999-2013 ernment to ban the use of Consultants for collection on Monday 21, October Lagos State has received local and 2013 had serious consequences for the international media attention for the revenue generating capacity of Lagos silent but remarkable transformation State (LSG, 2013) that has been taking place in the State since 1999. For instance, writing in the On the governance of Lagos State, Atlantic after a research trip to Lagos it is important to emphasize that the (in which this author was partially in- choice of the incumbent Governor volved), Howard French (2013:2) writes Raji Fashola as the successor to Asiwa- thus: ju Tinubu was a strategic one. Fashola has served as the Chief of Staff to for- For decades, Lagos suffered one of mer Governor Tinubu from 2003-2007. the worst images of any city in the Such experiences provided him with world, known widely as a place of the requisite skill to take over the lead- thieving politicians, streets that crack- ership of the state. led with danger, rotting infrastructure and go ‘slows’…But with the outside Fashola is not an everyday politician world having almost written it off, La- and one can argue that his distinctive- gos recently enjoyed a prolonged run ness and sense of purpose is a fall out of economic growth, swelling its GDP of this separate identity. Also, following to twice the size of Kenya’s, the richest Woodrow Wilson Politics-Policy dichot- and most important nation in East Afri- omy, I argue that the relative success ca. And while booming like this, Lagos of Governor Fashola in transforming has also begun to quietly develop a Lagos State owe so much to the back reputation for one of the most effec- office role of past Governor Bola Tinu- tive local governments in West Africa. bu in handling the political issues in Lagos State while the former concen- Although French’s article was in re- trate on governance. spect of the growth of urban centres in West Africa, his observation about In a way, Fashola is shielded from the the transformation that is going on in distractions that everyday politics give Lagos State is very apt. The growth in to the Governors. Although the issue the Gross Domestic Product and the of godfatherism has been a vexed improvement in provision of infrastruc- one in the context of Nigerian politics, ture are incontrovertible testimonies to somehow, the duo of Tinubu and Fas- the commitment of the government to hola has managed to handle this well. transformational governance. They have tried to replicate the politi- cal practice on the old Action Group, Joseph (2013) shed more light on how where party leaders gave direction to Lagos State has been able to achieve political office holders in the overall in- what he prefers to call ‘transformation- terest of the electorates. al exercise. Joseph states that:

86 Journal of Public Administration and Development Alternatives Vol. 1 No.2 December 2016 In Lagos State, one of Nigeria’s 36 ambitious, modernising governors from states with a population comparable the opposition Action Party, Lagos to Rwanda’s of over 10 million, a com- has embarked on an unprecedented prehensive state-directed transfor- construction spree, building freeways, mational exercise has been pursued sub-Saharan Africa’s first metro system since 1999 under former Governor Bola outside of South Africa, and public Tinubu (1999-2007) and especially his housing units on a large scale. At the previous Chief-of Staff and now Gover- same time, this formally rough place nor, Babatunde Fashola…Lagos State has even added subtler quality of life pursue a vast array of public-private improvements like the proliferation of partnerships along with a multiplicity of public green spaces (French, 2013:3) State created ventures in power gen- eration, transportation, water supply, Since assumption in office in 2007, environment and physical security (Jo- Governor Babatunde Fashola has seph, 2013:3). a practice of celebrating what his government has achieved within ev- It is instructive that while Lagos State ery successive 100 days in office. This has adopted a state-led development practice shows a kind of business-like model, the central government has attitude to governance in the State as adopted various variants of neo-liber- it also provides a means of receiving al economic doctrine such as dereg- feedback from the electorates on the ulation, privatisation of state-owned effects of the policies of the state on enterprises and liberalisation of trade their daily lives. and finance. The policy making pro- cesses of the country has been under He also continued with the programme constant manipulation and control of of his predecessor in organising an an- the Bretton Wood Institutions, that is, nual strategic session called Ehingbeti, the World Bank and the International where the State Government meets Monetary Fund (Amuwo, 2008). and dialogue with development part- ners in the private sector and the inter- The differences in result and outcomes national community. in terms of deliverables to the citizens at both levels of government can be The intervention of the political leader- traced to the type of development ship of Lagos State in its ongoing trans- models that have been adopted. It formation covers various sectors such will be difficult to capture all the whole as education, infrastructure, transpor- gamut of transformational socio-eco- tation, power generation, security, ag- nomic development that has been riculture, job creation, housing, indus- taking place in Lagos State over the trialization, urban water provisions, and past fourteen years of return to civil health care services. On education for rule. However, French gives a glimpse instance, the Lagos State have a poli- into this when he notes: cy of compulsory free education from primary to secondary school levels. Under the leadership of a succession of The State Government also pays the

SO Oloruntoba 87 examination fees of final year students potential of easing the transportation at the Senior Secondary School level. challenges that the people of Lagos Although the school imposed a pro- face. The efforts of the government on hibitive school fees at its only owned transportation are not limited to road university, (the Lagos State University), construction as the administration also which led to wide spread protest in focused on water transportation. A 2011, the State makes provision for bur- new international airport is also being sary for students. But in as much as the constructed in Lekki area of the State, bursary cannot reach all the students, where a multi-billion-naira Free Trade the prohibitively high school fees will Zone is also being located. prevent many brilliants but indigent stu- dents from pursuing their ambition. The Security of lives and property is a big Government has also strengthened challenge in any city of the size of La- the technical and vocational school gos State. The Government creatively to enhance that less brilliant students engaged different stakeholders in the have access to alternative education. state to contribute to a Lagos State Se- curity Trust Fund. This Fund has afford- The PATH Programme, which is an ac- ed the State Government to provide ronym for the four areas of priority of logistic support to the federally con- the administration include Power, Ag- trolled but poorly funded Police Force. riculture, Transportation and Housing. On Power, the state government has The resultant effects of this was the invested in power generation to en- drastic reduction in armed robbery hance rural electrification and access by 75% and an unprecedented 85% to power in the urban areas through its achievement rate on recovery of Independent Power Project (IPP). Oth- stolen vehicles in the State. The State er programmes of the State Govern- Government has also established a ment are seeing in concerted efforts to micro-finance institution, which give boost food production through mas- grants to small scale enterprises. sive investment in farming and fishing. Against the backdrop of the difficulty in access to finance in Nigeria, this ini- The State has also acquired public tiative has contributed to employment buses under the Lagbus and Bus Rap- generation in the State. id Transit scheme to aid movement of people within the state. Thousands of Lastly, the State Government has roads have been constructed while made provision of health for all and old ones are being re-habilitated. The sundry, one of the keys objectives of 10-lane Lagos-Badagry expressway the administration. The Government is an ambitious project that has high has expanded free health screening impact value in terms of cross-border diagnostic and treatment services trade and investment flow. and strengthened emergency services through the provision of Mobile Inten- The fact that this is complemented by sive Care Units and a Toll free help line light rail mass transit routes has further (LASG, 2013).

88 Journal of Public Administration and Development Alternatives Vol. 1 No.2 December 2016 5. SOCIAL COSTS OF THE TRANSFORMA- to train the displaced people, many TION were of the opinion that they should have been trained before being There is no doubt that the various so- banned from operating in the State. cial-economic transformations going Apart from the job effect of the ban, on in Lagos State have some social many citizens of Lagos State who live costs to the people. While this may be in the fringes of the city are facing diffi- deemed to be an inevitable outcome cult time commuting from their various of a reform process, it is expected that houses to the offices. the government should pay more at- tention to the plight of the poor and The beautification project of the State vulnerable members of the society, has also affected many artisans and who are adversely affected by such petty traders as they have been dis- changes. One of the main issues of so- placed from their places of daily job. cial costs in the State is displacement The massive cases of social displace- of people whose houses are affected ment have made some people to by road constructions. Although the argue that the whole idea of Lagos State government pays compensation mega city project is class-oriented, in in some instances, it is not in all cases which case the city is being prepared that this is done. In view of the fact for the comfort of the rich people at that, many of the affected people expense of the poor (Adelakun, 2013). depend on rents from such houses for This has implications for social harmony their livelihood made their conditions and cohesion. It may also have politi- to be unduly dire. cal consequences for the ruling party in future elections. In a bid to rid the State of criminals and hoodlums, the Government has made While the revenue drive of Lagos State several laws which affected the poor has been widely commended, it also people adversely. For instance, the has social costs to the members of the Ban on the use of commercial motor- Organized Private Sector, who often cycle in different parts of the State has complain about multiple taxations that affected several young people who they are made to pay by the State depend on this trade for the survival. Government. During the World Bank’s The ban was even more problematic Investment Climate Program, in which within the context of the mass unem- this author was involved in 2007 and ployment in the country. While it is im- 2008, issue of multiple taxation both at portant to keep the city of Lagos safe, the federal, State and Local Govern- the high rate of joblessness, which the ment levels was a constant one cited ban on motorcycle brings can actually as being a hindrance to smooth oper- worsen the insecurity of the people in ation of business in Lagos State. the State as many displaced people may be forced to take into criminali- Payment of tolls at expressways in the ty. Although the State Government State has also been an issue of con- has established many training schools testation. For instance, the State Gov- SO Oloruntoba 89 ernment embarked on a Public Private governments by the Lagos State gov- Partnership arrangement for the con- ernment has been confirmed to this struction of Lekki-Epe expressway on author by Local Government officials the understanding that the people will in the State. At two different encoun- pay tolls for using the roads. Until this ters with Local Government Chairmen, arrangement was terminated in 2013, Deputy Chairmen and Councilors in payment of tolls by drivers, peasants, 2009 and 2011, these elected officers cleaners and other low income earn- confirmed to this author that they have ers was at a high social cost to the no control over the Federal allocations people. Although an alternative route to the local governments. The Lagos was made for those who cannot af- State Government only release to the ford the tolls, many affected citizens of Local Governments what it deems fit the State believe that as long as they (Per. Interview, 2009 and 2011). Such pay their taxes, it remains the respon- practices are key characteristic of the sibility of the government to provide type of politics that is unique to the them with functional infrastructures, in- opposition party, which controls the cluding roads. State. Although it is patently illegal as it violates the letter and the spirit of 1999 Despite the general belief among the constitution, whether such deductions people and external observers such from local government revenues has as Joseph (2013), that Lagos is being assisted the State Government in car- run on the principles of probity and rying out its socio-economic econom- accountability, there are people from ic transformation is an issue for further the civil society who contend that the research. administration of the State is riddle with corruption and excessive spending on 8. CONCLUSION AND RECOMMENDA- projects that are not beneficial to the TIONS poor. For instance according to Com- rade Debo Adeniran, the Executive This article has examined sub-national Chairman of the Coalition Against Cor- governance within a Federal political rupt Leaders, Lagos State Government system, with Lagos State as a case ‘has been characterized with unnec- study within the Nigerian federation. In essary and excessive donations, lack contradistinction to the general high of due process in budget implemen- level of poverty and inequality in Ni- tation, illegal deduction and diversion geria, the chapter shows how Lagos of statutory allocated funds as well as State Government, which is controlled inflation of costs of contracts (African by an opposition party has achieved Examiner, November 5, 2013). some remarkable transformation over the past fourteen years of the return While some of these allegations may to democratic rule in the country. be hard to prove as the State Govern- The high capacity of State Govern- ment has consistently denied them, ment to generate Internal Revenue the issue of excessive, if illegal, control from taxes and dues was highlighted. over federal allocations to the local The socio-economic transformation

90 Journal of Public Administration and Development Alternatives Vol. 1 No.2 December 2016 going on in the State was attributed ment. As a former administrative cap- to many factors. One of these is the ital of Nigeria, many roads in the State politics-policy dichotomy in which the as well as the ports belong to the Fed- former Governor Asiwaju Bola Tinubu, eral Government. For too long these (unofficially known as the Governor have been neglected, thereby add- Emeritus) is pre-occupied with political ing to the financial burden of the State. issues, while his successor, Governor Consequently, it is incumbent on the Babatunde Fashola face the business Lagos State Government to continue of governance squarely. to engage the Federal Government to seek for its cooperation in granting ad- In view of the dependence of many ditional funding to Lagos State. of States in Nigeria on Federal alloca- tions, Lagos State commends itself to LIST OF REFERENCES an example of how a sub-national unit of a federation can work towards im- Adamolekun, L. 2000. The Nigerian provement in revenue generation. Al- federation at the crossroads: The way though it can be argued that the pe- forward. Publius: The Journal of Feder- culiar position and location of Lagos alism 35(3): 383-405 State are partly responsible for its suc- cess rate, other States in Nigeria surely Adebanwi, W and Obadare, E. have unique resources and locations 2010.‘Introducing Nigeria at fifty: the that they can tap into to make them nation in narration’. Journal of Con- less reliant on the federal government. temporary African Studies, 28(4):379- 405. In order to continue the socio-eco- nomic transformation going on in the Adedeji, A.2010. The Travails of Region- State, it is recommended that citizens al Integration in Africa in Adekeye A of Lagos State should continue to en- and K. Whiteman (eds.) The EU and sure that capable people in terms of Africa: From Eurafrique to Afro-Europa. intelligence, selflessness and vision for Johannesburg: Wits University Press a societal transformation are voted Adelakun,.2013, Fashola’s deportation, as the leaders in the State. The State not about Igbo. The Punch, August 1. should also continue to explore various avenues to shore its revenue base and African Examiner, Nigeria. Tuesday, expand opportunities for economic November 4, 2013 activities for its teeming population. In view of the identified social-costs of Alli, W. 2003. “The Development of transformation and reforms, the State Federalism in Nigeria: A Historical Per- Government must put in place pallia- spective in A. Gana and S. Egwu (eds.) tive measures to cushion the effects. Federalism in Africa. Framing the Na- Despite the high profile of Internally tional Question. Trenton and The Atlan- Generated Revenue in the State, La- tic Eritrea: Africa World Press, July 1. gos State deserves to be treated with special status by the Federal Govern- Amuwo. O. 2008. Constructing the SO Oloruntoba 91 Democratic Developmental State in Selected Works of Claude Ake. Lagos: Africa: A Case Study JAD Publishers of Nigeria, 1960-2007. Johannesburg: International Crisis Group (ICG). 2006. Institute for Global Dialogue. Occa- Nigeria’s faltering federal experiment. sional Paper No 59 Africa Report 119, October 25

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