Restructuring Nigeria with a cutlass – the Wike way
‘’Restructuring Nigeria’’ is a quandary. There is no concord on the complexion or dimension which the re-engineering of Nigeria should take. There has been a cacophony of arguments, but one opinion which a good number of Nigerians hold is that the orbital states that make up the country should determine, manage and control their own resources. This is reasonable.
It will be duplicitous to argue that the present complex is sustainable or rewarding. It is clearly not. We have been on this tenuous scaffolding for decades without measurable progress. Really, it makes no moral sense that the accruals from certain states are prodigalised among other states which seem not to be making efforts to become financially viable. What this system has created is indolence and a predilection for sponging off the federal government.
States naturally should be self-sustaining and competitive. What is the sense in creating states that end up sticking their proboscis deep into the national wealth bank, running it down with every gulp? This charade has effectuated stunted development across the board. While the productive states do not have enough for developmental projects and have to borrow in deficit, the beneficiaries of the ‘’papa-dash-me system’’ cannot drive themselves to growth. Both the giver and the taker are suspended in a loop of unrealised potential.
States should be able to compete on the basis of innovation, education and productivity. No state in Nigeria – whether in the north or in the south – is economically unviable. But the current arrangement is sapping them of the needed oomph to drive their development.
For example, Zamfara is the state with the highest gold deposit in Nigeria. This is in addition to other minerals which are in commercial quantity — asbestos, columbite, chronite, iron ore, manganese, marble, lithium and tantalite. This alone is enough to make the north an affluent region.
Other states in the north as well are rich in mineral resources. Adamawa has nentonite, gypsium, Kaolin and magnesite; Borno is blessed with bentonite, clay, diatomite, gypsium, hydro-carbon, kaolin and limestone; Kebbi is weathly in gold; Kaduna is endowed with amethyst, asbestos, clay, flosper, gemstone, gold, graphite, kaolin, hyanite, mica, rock crystal, ruby, sapphire, sihnite, superntinite, tentalime, topaz and tourmaline; and Kano is opulent in gassiterite, copper, gemstone, glass-sand, lead/zinc, pyrochinre and tantalite.
As a matter of fact, it is an exertion of ignorance and bigotry to say the north brings nothing to the national till. The north is blessed with tremendous resources enough to be self-sustaining. But the defective system is also holding it down. Most of the mineral resources in the north are unquickened – because of the flawed structure. So, it is only logical to say, all are victims of the impaired set-up.
According to a report by Economic Confidential, a financial intelligence magazine, six states – Lagos, Rivers, Kaduna, Ogun, Oyo, and Anambra generated more internal revenues than 30 other states put together in 2020. The report says eight states are insolvent.
The report says: ‘’Lagos remained steadfast in its number one position in IGR among the states with a total revenue generation of N418bn compared to FAA of N299bn which translate to 139% in the 12 months of 2020. It is followed by Rivers state which generated IGR of N117bn compared to its FAA of N198bn representing 58%; Ogun with N50bn compared to FAA of N88bn representing 57%; Kaduna State with N50bn compared to FAA of N124bn representing 40%; Oyo with IGR of N38bn compared to FAA of N127bn representing 29.7% and Anambra generated N28bn compared to FAA of N94bn representing 29.6%. The total internally-generated revenues of the six most viable states in 2020 at N695bn as computed by Economic Confidential was more than the entire IGR collected by the remaining 30 states put together which was less than N600bn.’’
Why should any state in Nigeria be in the red – when all of them have the latent capacitance to be economically fecund? It is lucid that the present complex discourages innovation and retard the development of the states. So, should there be a tilt towards economic independence by the states? I think so but within the bounds of the constitution.
Nyesom Wike, governor of Rivers state, asserting the right of his state to collect Value Added Tax (VAT) did a derring-do no doubt.
In August, a federal high court in Port Harcourt issued an order restraining the Federal Inland Revenue Service (FIRS) from collecting VAT and Personal Income Tax (PIT) from the state, and directed the Rivers government to take charge of the process.
The epochal judgment compelled the FIRS to file a stay-of-execution application. But the court declined to grant the application.
It is judicious that our laws are tested on matters of this character. Already some states like Lagos and Adamawa are mulling following the Rivers example. I believe this will only precipitate economic restructuring and push the states to be forward-thinking and innovative.
However, there seems to be some politics to the Rivers’ feat. Wike’s politics has always been belligerent, caustic and brash. The governor, by his utterances on the case, appears to be foe-fighting. By making infantile statements like, ‘’Rivers VAT not for Abuja people’’, and threatening to seal off FIRS offices in the state, the governor is betraying his real intentions. This may not be about Rivers people, but about Wike’s personal agenda.
I do not think any rational Nigerian will resist a process that will spur the development of the states, but Wike should desist from seeking ‘’restructuring’’ with a machete.
By Fredrick ‘Mr OneNigeria’ Nwabufo
Twitter/Facebook/Instagram: @FredrickNwabufo
Your discourse is fantastic, but; your conclusion is absurd. A new era is born. This is a constitutional issue and the judicial process of straightening things out is ongoing. Let us all be civil in our comments and not be rash. The outcome of the judicial process shall make us to know whether we are operating a federal system or not. Not withstanding the outcome of the judicial process, sometime, someday; most Nigerians shall be grateful to Gov. Wike for taking this bold step for the purpose of fast forwarding the issue of “fiscal federalism”. I am happy that he is not using “Boko Haram approach”.
I believe that Nigeria needs more of bold minds like Gov. Wike of Rivers State. It’s needless branding his approach to restructuring as “restructuring Nigeria with cutlas”. Let the ongoing judicial process determine the legality of his stance or prove him wrong. Personally, I feel that his approach is the type that works in Nigeria because it seems that discussions are increasingly producing less results in this country. I will really prefer that the States take charge of their VAT collections.
It is absurd that you acknowledge Gov. Wike has done the right thing how come you use such word as machete. Secondly you acknowledge that what he has gone to court to do is right, why should the people in Abuja not Rivers State be the beneficiaries. I think it has come to that time that people should recognize boldness tenacity and courage and not colour such with their feelings which are obviously biased.
What you wrote are some how imbalance? First, Gov Wike, take a bold steps strengthening what the Federal government or presence Govt are practicing, how can a State Govt gave ordered to destroyed hundreds of dollars of beers, in the name of Sharia law, and still want to participate in the revenues sharing formula through that same beer which are been produced here in Southerners Regions? you the writer are you quite understood yourself? Don’t you see the clear evidence that, that Kano generated ₦2.8b and federal govt returned the same amount of money to them, while coming to this side the FIRS collected trillions naira but Federal Govt gave those states a little, the presence Govt are rubbing Paul to paid Peter. Stop being myopic and unreasonable Mr. Fredrick be a good ambassador for your people. Northerners are not contributing anything to the grows of this country “Nigeria” instead what they are contributing are bandits and terrorists, and hating Southerners with passions when it’s comes to be a President. I don’t expect you to say something good about Wike style govt, but the Bible advice us there is a time to keep quiet and a time to speak, hence, this a good time for you keep quiet if you have not received wisdom to know what is happening.
Your view is the direction we actually need to be talking about and taking. Each state has the capacity to be self sufficient but the present structure as operated in Nigeria is the cause of economic retardation. Imagine what would happen to the Naira, if each state becomes economic sufficient and competitive?
Yes, Wike is brash or as some may say “lack political finesse”. In my view, he is the kind of political leader that is needed in an insane society like Nigeria. The likes of Mr. Kingsley Moghalu can’t operate adequately in our society. We need people like (or better) that have the intelligence and rascality of Wike for now to get Nigeria out of this present logjam.
Governor Wike is the presidential material we need now. Other governors are either docile or simpletons. I wish Wike to wake up and rule this country, i will campaign for him with the same dexterity we used to campaign for Buhari that has failed us all completely.