Re-establishing Fiscal Federalism in Nigeria: A Historical Perspective
Nigeria, as a Federal Republic, has a tumultuous history with upholding true fiscal federalism. The concept of federalism entails the sharing of power between a national government and the states within its borders, thus avoiding consolidation of power in either entity. Nigeria’s path to fiscal federalism is deeply intertwined with its historical constitution, including the 1963 Constitution, which laid the groundwork for genuine fiscal federalism.
Regrettably, subsequent post-independence military governments in Nigeria have consistently amended the constitution to weaken the authority of states and consolidate power at the national level. This has resulted in an imbalanced resource-sharing formula that favours the central government over the states.
In an illuminating interview with the Vanguard Newspaper, Professor Ben Nwabueze, SAN, Chairman of the distinguished group, The Patriots, shed light on the shortcomings of Nigeria’s constitution. He underscored how unbridled centralisation of power has led to the erosion of genuine fiscal federalism, culminating in disunity and an enduring power struggle at the centre.
The necessity for true fiscal federalism was emphasized by the late Chief Rotimi Williams and others during the Constitution Drafting Committee under the military government in 1978. Their aim was to foster unity in Nigeria by establishing a robust central government. However, the unintended consequence was a lack of unity, as the struggle for political power and control intensified at the centre. Consequently, fiscal federalism, crucial for equitable resource allocation, became compromised.
Senator Bola Ahmed Tinubu’s resolute opposition to Nigeria’s centralization of power stands as a testament to his dedication to authentic fiscal federalism. His decision to establish 37 additional Local Governments in Lagos State in 2004 directly challenged the established order. Despite resistance from the incumbent President at the time, General Olusegun Obasanjo, Tinubu persisted in his pursuit of genuine fiscal federalism, ultimately taking his case to the Supreme Court.
As Tinubu exited and Fashola took over, the fight for fiscal federalism continued, signifying an unwavering commitment to upholding the true principles of federalism.
As Nigeria moves forward, the challenges of fiscal federalism persist. The current socio-economic circumstances have laid bare the flaws of a system heavily skewed towards centralization. The controversy over fuel subsidy removal, impacting many lives, has raised doubts about the government’s commitment to genuine fiscal federalism. In the face of these challenges, there remains hope that advocates like Senator Bola Ahmed Tinubu will continue to advocate for authentic fiscal federalism.
The fight for fiscal federalism transcends legal battles; it is a struggle for Nigeria’s future. As we look ahead, there is a need to revisit the constitution and amend it to restore the spirit and letter of the 1963 Constitution, which upheld the principles of fiscal federalism.
In conclusion, the advocacy for fiscal federalism still requires champions willing to defend the true principles of a Federal Republic. It is not merely a political matter; it is about Nigeria’s future and ensuring the preservation of the rights and privileges of all states.
The views expressed in this publication are solely those of the author and do not represent the opinions or views of OSUN DEFENDER.
