Problem of Revenue Allocation Bequeathed by the Military

If the fact must be told, ours is a glorified unitarism masquerading as federalism. A situation where the component units, the states, go cap-in-and to the central government(called Federal Government) for assistance can not, by any stretch of imagination, qualify as a federation. Under military dispensation, the situation was worse ostensibly due to the command structure that exists in the army wherein the Commander-in-Chief of the Armed Forces who also doubles as head of state is the all-in-all. He alone holds the four aces and calls the shots. And woe betide that state that failed to embark on pilgrimage to the centre to solicit for assistance.

Under the civilian dispensation, there is just a little difference. And the difference lies only in the constitutional provision for allocation of monies from the federation account to the component units, namely the state and local governments. For example, Section (162(1) and (3) of the Constitution of the Federal Republic of Nigeria, 1999, talks of the Federation Account and how the monies there are to be distributed. It provides:

 “162(1): The Federation shall maintain a special account to be called “Federation Account” into which shall be paid all revenues collected by the Government of the Federation…

“162(3): Any amount standing to the credit of the Federation Account shall be distributed among the Federal and State Governments and the local government councils in each state on such terms and in such manner as may be prescribed by the National Assembly.”

The point I am making here is that there exists constitutional backing for the distribution of monies accruing from certain sources into the Federation Account for onward transmission (distribution) to the three tiers of government. Let me say straight away that there is nothing wrong in this provision since it entrenches certainty and also allays fears (real or imagine) of the component units of out “Federation” regrading likely deprivation, especially under an autocratic government.

In practice, however, the allocation is effected on monthly basis. But there is a negative consequence to this arrangement, namely over reliance on the so called monthly allocation. Let us call a spade by its proper name: everything is wrong with an arrangement that allows for over- dependence on the distributable pool to the detriment of production, creativity, contribution and innovation.

A system that encourages the component units to depend on the centre and without the ability to develop its own resources is nothing but a flagrant institutionalisation of laziness and perpetual dependency. As it is now, most states are nothing but conduit pipes through which salaries of workers are paid. After paying salaries and allowances, there is virtually nothing left for the states to enable them develop their respective states.

Any country that adopts such a system is bound to wallow in poverty, depend on importing virtually all items under the sun, low/non-productivity, borrowing and underdevelopment just to mention a few. That explains why Nigeria has remained in the self-imposed politico-economic quagmire for long.

It is an open secret that most of the states with the Nigerian peculiar federation contributes virtually nothing to the collective pool! And the irony of it all is that these same non-productive states are the very ones that cry to high heavens at the slightest provocation, especially with regards to the inadequacy of the “federal allocation”. Isn’t it time we sat down and tell ourselves some home truths and face reality in this present dynamic world?

The question of allocation of revenue to the component units of the federation has pitched some states, particularly the riverine states, against the central authority (Federal Government) of recent bringing to the fore, once more, the structural defects in the Nigerian deformed federation. According to the front page story of a national newspaper, in its Wednesday June 16 2004 issue titled: “Sagay, Oshuntokun fault Nigeria’s federation”, the authoritative tabloid reported the duo’s very instructive contributions which I reproduce in extensor hereunder:

“The controversial nature of Nigeria’s federal structure come under scrutiny again on Tuesday as eminent constitutional lawyer, Professor Itsay Sagay; and the former Nigeria Ambassador to Germany, Professor Akinjide Oshuntokun, insisted that what existed in the country was no more than a travesty of federalism.

The two speakers also pointed out that the Federal Government, which wields enormous powers under the present system was … unproductive (sic). They expressed the fear that the country might be plunged into an unprecedented chaos if the situation was not reversed.

Sagay, in his lecture… insisted that under the present system, the relationship between the centre and the states, was a master-servant relationship.

He said: ‘Under a normal federal structure, the centre is the servant of the region. But when you have federal structure where the centre is the head, something is fundamentally wrong.’ 

Condemning the Federal Government’s hands in what he called “to many pies”, the constitutional lawyer said a situation where the centre controlled the police, electoral bodies and other instruments of power, leaving the states with next to nothing, was unhealthy for the country. Using the recent face-off between the federal and some state governments as example, Sagay noted that the problem arose because of structural defects in the present Constitution, most of which were carried over from the 1979 constitution… … …

“We are having problems today because of the 1979 Constitution which caused over concentration of power at the center. You find this monthly pilgrimage of State Commissioner of Finance Abuja (sic) to collect their allocations. So it is possible for the Federal Government to now see itself as a benefactor which has the right to scold these states as it likes.” 

It is my humble view that the problem with Nigeria’s brand of federalism goes beyond the superficial. It is talent. And the fault, as Williams Shakespeare would say, lies not in our stars but in us. By necessary implication, therefore, the solution also lies within us and not elsewhere.

The Way Out

First and foremost the question of our jaundiced federation should be addressed once and for all. There is no pride in continuing to deceive ourselves that all is well when from all indications and judging from our experience so far, there is fire on the mountain. The structural imbalance inherent in our federation should not be allowed to further constitute a potential danger to our corporate existence.

The starting point should be our admission of the fact that the present structure of our federation is defective. Having admitted this obvious fact, we can then sit down, itemise the grey areas one after the other, clear them and, afterwards, apply the agreed workable formula for the sustenance of the new real federation.

The truth is: if everything has been okay with us as a people under a workable arrangement with fairness, equity and justice as our watchword, there would not have been any need for this conference.

The truth is: ours represent a perfect example of what a federation should not be. Not only is the centre (called the Federation Government) too strong, it is just too attractive and unwieldy. The mad rush to the center is a product or over attractiveness made possible by the designers of our own brand of federation.

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