Good People, my postulation that Nigeria must pursue development via a regional framework does not mean that we cannot still push for fiscal federalism (states keep their wealth but pay tax to the federal government). Yes, they’re not mutually exclusive which means you can have a state-level fiscal federalism and also a regional-based development.
As I noted, excluding about four states (Lagos, Delta, Rivers and Akwa Ibom), catalytic and transformal projects in Nigeria at state levels may be challenging as most states do not have the resources. From 2016 to 2022, Nigeria’s federal capital budget performance was less than 40% which means that even in the small budget we have for 220 million people, we cannot even execute all the components fully. At the state level, on average, that number is lower.
So, what is the solution? Let regions pool resources and execute projects which can benefit and transform them.
Take an example: in the United States, the states of New York and New Jersey are independent with full fiscal autonomy on the tenets of American federalism, yet, these two states co-developed their port system: “The Port Authority is jointly controlled by the governors of New York and New Jersey, who appoint the members of the agency’s Board of Commissioners”.
So, my proposal on a regional-based development does not mean we cannot still pursue fiscal federalism at the state level. Failure to pursue developments at regional level could lead to lost decades as most states have no capacity to execute any meaningful capital projects. If you expect Kano State’s budget, which is less than Imo State’s N592 billion, to do something huge, you are not paying attention.
And while Lagos with its close to N2 trillion budget can do whatever it wants to do, Imo State cannot dream big. However, if Imo and other Southeast states pool resources, they can build something catalytic for shared-development.
Good People, my postulation that Nigeria must pursue development via a regional framework does not mean that we cannot still push for fiscal federalism (states keep their wealth but pay tax to the federal government). Yes, they’re not mutually exclusive. As I noted, excluding… pic.twitter.com/REdqReImS3
— Ndubuisi Ekekwe (@ndekekwe) March 3, 2024
