From his NADECO days, Senator Bola Ahmed Tinubu has remained a consistent advocate of devolution of powers to the subnational entities. His struggles for fiscal federalism were not without a backlash. As Governor of Lagos State between 1999 and 2007, he created 37 new Local Government Development Authorities (LCDAs), which pitted him against the Obasanjo-led federal government. And in a show of federal might, the statutory allocations of the existing 20 LGAs in the state were withheld. Even after the Supreme Court had ruled otherwise, Obasanjo stuck to his guns. It was the successor administration of president Umaru Musa Yar’Adua that released the funds within a few days in office.
Restructuring of the country was a major plank of APC manifesto in the campaigns in 2015. However, when in January 2018, that president Buhari publicly expressed his firm view that Nigeria’s problems were more of process, and not structure, it gave fillip to the denials of the promise of restructuring by the party apparatchiks. But to defer to public pressure in the light of the approaching 2019 general elections, the Party quickly empaneled the Nasir el-Rufai-led APC Committee on True Federalism, which recommended fiscal federalism and upscaling of revenues distributable to the federating units, among other recommendations. The report was pigeonholed.
Be that as it may, it takes leadership with a philosophical conviction and strong political will to drive needed reforms. President Tinubu has shown signs that he fits the bill. Tactically, he was silent on it during the campaigns. But today, he has gone full blast. The presidential assent to the electricity (amendment) Act on June 8, 2023, is giant step towards reducing the functions in the exclusive legislative list. Thus, the new law has removed the federal government’s monopoly and decentralized electricity generation, transmission, and distribution. While recognizing the National Electricity Regulatory Agency (NERC) as the apex regulator until each state adopts the new Act, the law opens investments in the distribution and supply chains in the power sector and encourages a broad range of harnessing the renewable energy. Already, no less than 12 states have applied to set up their state’s electricity regulatory commission.
The Supreme Court judgment on July 11, 2024, which returned financial and administrative autonomy to the 774 local governments would remain one of the most enduring legacies of the present administration. That singular suit filed in May 2024 by the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, achieved what all the past three constitutional amendments could not because of the influence of the all-powerful governors who controlled their States Houses of Assembly. Specifically, the ruling recognized local governments as the third tier of government and declared payment of their allocations to joint accounts run by States as a gross misconduct. It also declared dissolution of elected officers of Local Governments and appointment of caretaker committees as illegal, and ordered that councils run by caretaker committees should not receive statutory allocations. Consequently, a three-month grace period was given to all States without elected officials to conduct Local Government elections or risk withholding of their LG allocations. The presidency has also declared that LGs will receive direct allocations from end of January 2025. And in anticipation, LGs are reportedly opening accounts in the Central Bank of Nigeria.
Perhaps, aligning with the 2014 Confab Report and growing insecurity across the country, President Tinubu endorsed and agreed with the state governors on the necessity of establishment of State Police across the states. As at the last quarter of 2024, all the 36 States and the Federal Capital Territory administration had submitted their reports to the National Economic Council on the establishment of state police. This policy shift, which is opposed by the Police hierarchy and is viewed with suspicion by a section of Nigerians, is in tandem with Mr. president’s avowed readiness to reform the Nigerian Police, stem the tide of insecurity, and strengthen the subnational governments to secure their domains.
The presidential approval of splitting of Nigeria College of Aviation Technology (NCAT), Zaria, Kaduna State, into multi-campuses across the six geo-political zones elicited healthy reactions. It has been noted that this policy will “ensure efficiency, national coverage and smooth operations.” Apart from the headquarters in Zaria that will serve the (Northwest), other campuses include: Ilorin, (Northcentral); Yola (Northeast), Akure, (Southwest); Ebonyi, (Southeast); and Osubi (Southsouth). While some pundits see the allocation of over 7 billion naira for its realization as a misplacement of priority, many noted that it will enhance access to training and education in the critical sector.
The creation of the Ministry of Regional Development by Mr. President is an eloquent declaration of his resolve to effectively coordinate the acceleration of empowerment and development across the geo-political zones. Under his watch, two development commissions: North West Development Commission (NWDC) and South East Development Commission (SEDC) were passed and signed into law. The two has joined the existing Niger Delta Development Commission and North East Development Commission (NEDC). Hence, establishment of more development commissions for the Northcentral, Southwest, and Southsouth are in different stages of legislative works. Invariably, no region should make claims of exceptional treatment as these are part of strategic measures to reduce the fiscal powers at the centre.
The tax reform bills, which have raised concerns and controversies, are aimed at encouraging production, protecting the poor and engendering competitive development. Although the bill that specifically reviews the percentages of allocations to states has been tinkered by political considerations, pulling off the changes in the tax administration would be the most potent instrument in demonopolizing the behemoth federal government. The states and LGs will have new impetus to innovate and implement changes and overtime, accountable leadership will take its pride of place in the engagement between government and the citizenry. However, President Tinubu would have the Nigerian Governors Forum to contend with, especially in the financial autonomy of the LGs. He does not need to succumb to a likely blackmail of using the funds for his re-election. Let the LGs breathe!