By Ibekwe Nnamdi Chimdi

Nigeria’s stunted development following the 1966 coup and the subsequent Nigeria-Biafra Civil War can be attributed to significant constitutional anomalies that have constricted its progress.

The exclusive legislative list encompasses all the powers that should typically be exercised by the various constituent tiers of government, particularly the control over natural resources.

This centralisation has effectively eliminated fiscal autonomy – the essential element that supports the functioning of federalism. As a result, Nigeria, as a federation, has been struggling to thrive on multiple fronts.

The concept of federalism has long been a subject of scholarly discourse. A renowned political scientist, Wheare Kenneth Clinton, defined it as “the method of dividing powers so that the general and regional governments are each, within a sphere, coordinate and independent” (Wheare, 1963).

At the heart of true federalism lie the principles of shared sovereignty, decentralised decision-making, and the equitable distribution of power and resources between the central government and constituent states or regions.

The fundamental ideals of true federalism include autonomy, where constituent states or regions possess a significant degree of autonomy in policymaking and governance within their jurisdictions. The next is fiscal decentralisation, where subnational governments have the authority to generate revenue and allocate resources to address local needs and priorities. Another fundamental ideal of true federalism, cooperative governance whereby the central and subnational governments work in a spirit of collaboration and mutual respect to achieve national objectives. Yet another basic principle in true federalism is diversity and inclusion in which the federal structure accommodates the diverse cultural, linguistic, and economic realities of the country, ensuring no region is left behind.

The adoption of true federalism has yielded significant economic and social benefits for countries around the world. In India, for example, the shift towards greater fiscal decentralisation and state autonomy has led to increased innovation, competition, and tailored policy solutions that have driven rapid economic growth and development (Rao, 2007). Similarly, in the United States, the federal system has fostered an environment of entrepreneurship, technological advancement, and regional specialisation, contributing to the country’s economic prowess (Oates, 1999).

Unfortunately, Nigeria, despite its constitutional designation as a federal republic, has struggled to fully implement the principles of true federalism. The country’s history has been marked by a persistent centralisation of power and resources, with the federal government wielding disproportionate control over key economic and political decisions. This has led to a range of challenges, including uneven development, where the concentration of resources and decision-making in Abuja has resulted in stark disparities in economic and social development across Nigeria’s regions, with some states lagging far behind others; weak subnational governments, where the limited autonomy and fiscal capacity of state and local governments have undermined their ability to address the unique needs and aspirations of their constituents, leading to inefficient resource allocation, where the top-down approach to resource distribution has often failed to align with the actual needs and priorities of local communities. This has led to suboptimal utilisation of public funds, and stifled innovation, where the lack of subnational policy experimentation and competition have hindered the emergence of innovative solutions to Nigeria’s complex socioeconomic challenges.

The challenges stem from the provisions contained in the Constitution of the Federal Republic of Nigeria,1999 as amended such as provisions cited below: Section 162 – The Federation Account. Section 162(1) establishes the Federation Account into which all revenues collected by the Federal Government, with a few exceptions, shall be paid; Section 162(2) empowers the National Assembly to determine the formula for distributing funds from the Federation Account, taking into account principles like population, equality of states, internal revenue generation, land mass, terrain, and population density. The proviso to Section 162(2) entrenches the principle of derivation, stating that “not less than 13 percent” of revenues from natural resources shall be paid to the state from which the resources are derived, among others.
Section 121(2) states that expenditures not charged on the Consolidated Revenue Fund shall be included in an Appropriation Bill.

Section 121(3) states that “Any amount standing to the credit of the judiciary in the Consolidated Revenue Fund of the State shall be paid directly to the heads of the courts concerned.” These provisions, especially the concentration of revenue rights and jurisdiction at the national level, while limiting the revenue-generating powers of states are not only antithetical to development but have equally led to the states’ “excessive dependence on the central government.” Apart from limiting their ability to be proactive, and resourcefully explorative in the discovery of unique inherent potentials, their autonomy is equally undermined. This is a major inhibition to the practice of true federalism and stunted development in Nigeria.

To unleash Nigeria’s full economic potential and ensure the equitable distribution of prosperity, the country must embrace the principles of true federalism.

This involves devolving power and resources, transferring greater autonomy and fiscal resources to state and local governments, empowering them to drive development in their respective regions; fostering cooperative governance.

Others are, establishing robust mechanisms for collaboration and coordination between the federal, state, and local governments to achieve national objectives; promoting diversity and inclusion.

Others are recognising and accommodating the unique cultural, linguistic, and economic realities of Nigeria’s diverse regions, ensuring no community is left behind; diversifying the economy, that is, shifting away from the current over-reliance on oil and gas, and investing in the development of other sectors such as agriculture, manufacturing, and services to create more equitable and sustainable growth.

The path to Nigeria’s economic resurgence lies in the adoption and adaptation of true federalism.
By embracing the principles of autonomy, fiscal decentralisation, cooperative governance, and inclusive development, Nigeria can unlock the full potential of its diverse regions and build a more prosperous, equitable, and resilient nation.

The time for action is now, as Nigeria stands at a critical juncture in its history, poised to harness the power of true federalism and secure a brighter future for all its citizens.

The recent Supreme Court judgment prouncing autonomy to the local governments in the country is a step in the right direction. However, more needs to be done to ensure strict adherence to the new law. Mere judicial pronouncement not backed by enforcement will still not do the country any good do. The Supreme Court must be prepared to prosecute governors who may want to make it unworkable for their selfish reasons.

●Hon. Ibekwe Nnamdi Chimdi is the lawmaker representing Bende North Constituency, Abia State.