A Professor of Public Finance and Monetary Economics in the University of Uyo, Professor Emmanuel Onwiuduokit has identified the implementation of fiscal federalism and restructuring as the major ways Nigeria can make progress in development and unity.
Onwiuduokit gave the assertion on Friday while delivering the 70th inaugural lecture of the University tagged, “Fiscal Federalism and Development Hysteresis in Nigeria: Demystifying the Nuances,” at the 1,000 capacity TETFUND Auditorium, Main Campus along Nwaniba Road, Uyo.
The professor also called for the amendment of the 1999 Constitution to devolve more powers to the states saying such would lift the country out of the challenges bedevilling it’s progress, justice and equity.
He traced the problems facing Nigeria to a faulty foundation were all the political and economic powers were vested on the federal government which incidentally ‘cannot exist without the states.’
He said aside International diplomacy, defense and currency which must be in the exclusive list of government, all other things should be in the concurrent list so that states can legislate and take action as well.
Onwuoduokit who said each state should be made to return at least 50 percent of the revenue it generated either from minerals, agriculture or taxes emphasized that the idea of sharing value added taxes (VAT) should be abolished
The Professor disclosed that federalism paid off when it was practiced in Nigeria in the sixties noting that the call for restructuring was as a result of lopsided and unitary system of government imposed by the military government on Nigeria
“before the discovery of oil in 1958, royalties from minerals were wholly owned and managed by the regions of derivation.” He said.
He maintained that federalism if adopted by the Nigerian government would reduce wastage and cost of governance.
Buttressing his claims, the professor said “One of the problems of Nigerian economy is wastage of resources. Good money is wasted on wrong things. Federalism is going to aid Nigerian development to move faster and wastages will be reduced for instance in federal ministry of housing, houses are built in the states and why should one leave FCT Abuja, come down to a state to supervise houses constructed, they will lodge in a hotel for the period they will stay and collect per diem as well. But if that was devolved to the state and the corresponding resources needed given to them, you will find out that less would be spent to realise same project.
“Also in the area of health , if there is an outbreak in a state. The cost of sending people from the Federal ministry of health to ascertain the level of the case in the state could be saved if the state is empowered to use their resources and manpower to tackle the menace.
“In Education, why Education Trust Fund ETF? Where as the money meant for education should be allocated straight to schools and the EFCC can see how the monies were expended in the school. But why setting up another structure were you have the director general and all that money that should be channeled to education form bureaucracy, as long as that continued the money can not be enough.”
Onwiudiokit however allayed fears that adoption of federalism would weaken the center and paralyz some economically non viable states stressing that every state in Nigeria can survive on its own since each state has land and natural resources that can be exploited.
He added that devolving powers to states would breed healthy competition among states which in turn would aid development faster
The Professor maintained that when federalism was practiced in Nigeria, tin bauxite, cocoa, groundnut etc., in the Northern and Western regions were exploited solely for the benefits of the North and West adding that the East and the South have their own natural resources
that can also be exploited to their own benefit.
The Don also advocated for creation of state police saying that such would curb the security issues ravaging the country as the police officers would be conversant with the terrain and identify those who pose as security threats in the area.
In his remarks, the Vice Chancellor (VC), Professor Enefiok Essien (SAN) commended the 70th Inaugural lecturer and said the topic was apt and timely as it addressed one of the contemporary issues in the country.
Essien noted that although fiscal federalism has been re-echoed severally as a guaranteeing factor for social and political stability in the country, yet no administration has gotten the political will to adopt it as a constitutional mechanism of governance.
