Dele Sobowale
“FG bars states from collecting mining royalties” – Minister for Solid Minerals Development (Report, February 2, 2024)
According to Dele Alake, “state governments and local governments are entitled to collect other taxes, such as ground rent and other taxes, but they are not to collect royalty and tax on mining.” The announcement, if it stands, will constitute a direct attack on the ability of states, with solid minerals, to maintain their current Internally Generated Revenue, IGR. It will also add to the constitutional confrontations raised by recent judgments by the Supreme Court of Nigeria, SCN, regarding Internal Waterways in the country and Elegushiland in Lagos State.
However, before going forward, it is important to state the principles to which I subscribe. It was my privilege to be asked to write the Foreword to Governor Victor Attah’s book titled RESOURCE CONTROL in 2004 and to edit and compile the second edition of the book in 2018. To state that Nigerian states are being justifiably kicked around by the Federal Government is an understatement. They deserve the blows and insults implied in being told that while they will suffer all the liabilities associated with mining, the FG will collect the lion’s share of the revenue accruing from the production. Monkey works, baboon chops has never been more aptly defined by the absurd 1999 Constitution imposed by the military on Nigerians.
Incidentally, any state Governor needing a copy of the Attah book should get in touch. Nobody needs to re-invent the wheel. All the arguments in favour of states’ RESOURCE CONTROL are already there. Unfortunately, Attah was almost alone among the Governors of the 1999-2007 Class. Tinubu, then Governor of Lagos, was among those who stood aloof. Only Governor Alamieyeseigha of Bayelsa and Ibori of Delta had the guts to confront President Obasanjo – who was dead set against it. Obasanjo, always mercilessly vindictive, made sure that Alams, Ibori and Attah paid heavy prices for advocating what was just another synonym for true federalism – which the progressives in the South-West had always promoted.
It is, therefore, one of the ironies of Nigerian history that RESOURCE CONTROL is under its strongest attack now at a time when a life-long member of the progressive movement is now President of Nigeria. Dele Alake’s statement flies in the face of the principles progressives have always advanced. Have we elected wolves in sheep’s clothing? I certainly hope not.
“I would rather be right than President” – Henry Clay, 1772-1852.
Ordinarily, I would have requested for an appointment with the Minister to discuss the issue privately before going public. But, the government he serves has made it impossible for me to undertake a trip costing N350, 000 just to obtain clarifications. Perhaps we can meet in Lagos when he visits us. Meanwhile the matter is too hot to be left hanging. Even the Minister’s state will be seriously affected by the order.
When Attah was leading the struggle for RESOURCE CONTROL and I eagerly joined him, most people, especially northerners, thought it was a clever ploy by oil producing states to collect more from the federation account; and reduce their share of revenue from Abuja. They were adamantly opposed to RESOURCE CONTROL despite pointing out that unexploited solid minerals in some of their states could fetch more money than their share of crude oil revenue. The current crop of Governors, North and South, invaded by illegal and murderous miners, are perhaps now realizing the blunder committed by their predecessors by not supporting RESOURCE CONTROL.
Right now, the FG is desperate for funds to redeem several promises made by President Tinubu after talking first and thinking later about the consequences of fuel subsidy removal. Among others, the N35, 000 monthly allowance promised workers as part of palliatives package has been paid only in September. The rest has accumulated; and is increasingly looking like another politician’s promise – not meant to be redeemed. Out of its desperation, the FG appears ready to throw the states under the bus to save itself. Governors, especially of APC, will need to put on their thinking caps and not allow partisan politics to overcome their judgments. They were all elected to serve the interests of their states; not to sacrifice them on the altar of party solidarity by allowing the FG to swallow the waterways and mines.
The environmental disasters facing every state with a water front are not problems that can ever be solved by a Federal Government far away; neither can the damaging after-effects of mining. A trip to cement manufacturing towns, Obajuwana, Ukpilla and Ewekoro, would help the readers to understand the point being made here. While the major investors and the FG collect trillions of naira annually, the people living in the communities nearby are suffering the consequences of cement production; the same is true of oil and gold mining. State governments are helpless.
Incidentally, while illegal miners, foreigners included, working in Zamfara are well protected from bandits and kidnappers, ordinary citizens are not!!!
COLLECTIVE ACTION NEEDED
“We must all hang together; else we shall hang separately” – Benjamin Franklin, 1706-1790, during signing of the American Declaration of Independence.
Nigerian states have been turned into parastatals of the FG by misguided military rulers. Unfortunately, our two former civilian Presidents – Yar’Adua and Jonathan – lacked the courage to redress the damage done to the nation by centralization of power. It would amount to self-deception of monumental proportions if anybody expects Tinubu to act. Nobody surrenders power willingly. If we want true federalism, we must all be prepared to do battle with President Tinubu .
APC Governors, in particular, have to jettison the idea that it would amount to party disloyalty to join others in this struggle for many reasons. First, Abia is under Labour Party; Anambra is under APGA and Imo is APC. All are enjoying the 13 per cent derivation for which three former PDP Governors fought against a vicious PDP President. Given the terrible financial situations in which states find themselves now, any reduction in their IGR on account of anti-federalist SCN judgments might render some states ungovernable.
Furthermore, serious negotiations are underway for a new Minimum Wage, MW, legislation, which will certainly impose heavier financial burdens on states. Definitely, this is not the time for states to be losing sources of revenue to the FG.
Collective action by all the Governors is essential on this matter. I am personally convinced that if all the state Governors had supported Attah, Alams and Ibori in their struggle, they might have secured up to 20 per cent as settlement then.
Trillions of naira has gone down the pockets of corrupt Federal Government officials; just because Governors failed to realize the real interest of their states.
At the moment, the FG has established a Committee to deliberate on the Minimum Wage. Two of the states on the Committee have refused to pay the current rate of N30, 000 per month. Organized Labour, meanwhile, first announced N200, 000 as its preferred MW. Because the issue is of paramount importance to the nation, I will not fully address it now. But, for the sake of those who might not read VANGUARD tomorrow, I will ask Labour leaders a question now: If governments are finding it difficult to pay N30, 000 now, how will they pay N200, 000 which Labour regards as the barest minimum acceptable?
Follow me tomorrow on this issue.
TRIBUTE TO MY GREAT GRANDPA – FASEKE OLUKOLU
On Sunday, February 4, 2024, thousands of Lagosians gathered to pay tribute to 24 founding fathers of Eko aka Lagos Island. The 24 lived and died early in the last century. They were all successful in their various fields of endeavour; and so rich, they formed the EGBE OLOWO or SOCIETY OF THE RICH.
The list included Odunfuwa Osholonge, Jinadu Ayodele Oja, Lawani Odunewu, Jinadu Kabiawu, Buraimo Afinni, Runmonkun, Onashokun, Idosu Arepo, Sarumi Osun, Akinwunmi, Yusuf Amodu Alaka, Anjorin Abayomi, Tairu Eko, Kumuyi Kapoda, Sunmonu Atiko, Falana Eshilokun, Sule Olukotun, Ogunyemi, Salami Afisi, Seidu Abisogun, Fashina Jinadu Bombata, Agunbiade Ewumi Eko, Bamigbade and Faseke Olukolu – my great grandfather.
Despite the fact that he was the only Christian in the Society, he was the acclaimed leader. He actually married three daughters of his Society members and sent them on Holy Pilgrimage at the same time. Only two returned. He had several children but only four survived him – three boys and one girl. Onikepo, as she was called, was also his last child and only daughter. Onikepo Olukolu was my grandmother. Greatgrandpa left four houses for his kids. But, in addition, he paid the Oba of Eko to have a street named for her as her wedding gift to Pa Agbe-Davies. Onikepo Street starts from St John’s Church, Aroloya, and ends at Itafaji Market, Alli Street. Grandma’s house is the only building left by Baba Faseke Olukolu which has not been developed; and I am the landlord. The original design by a Brazilian-Nigerian master builder is still intact. It will remain so until I die.
Incidentally, my grandma not only knew her Daddy; she also knew her grandpa – a fellow named Akangbe Onire, born c1770, who left about 37 buildings on the Island.
I am amused when someone whose parents came out of a bush says Lagos is “no man’s land.” How many of them know where their grandfather was born?
Disclaimer
Comments expressed here do not reflect the opinions of Vanguard newspapers or any employee thereof.