Fiscal Federalism the Struggle for Resource Control
CHAPTER ONE
Objectives of Study
The objectives of study are as follows:
- To understand factors responsible for the agitation by some states to control their resources.
- To find out the impacts of the agitation by some states to control their resources.
- To find out whether resources control can halt to or rather minimize the recurring problem associated with Nigeria fiscal federalism.
- To find out whether resource control would either promotes centripetal or centrifugal forces in the Nigeria policy.
- To find out whether resources control would bring development to the federating units.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
Fiscal federalism or decentralization debate in the country has been the focus of public discourse for several years now. It is an issue that has for the first time in the history of Nigeria forced the Southern people (South-South, South-East and now South-West), to unite to „fight‟ for a common cause. The practice of federalism and resource control formed the focal at the 1957 Constitutional Conference in London and the 1958 Conference that led to the enactment of the 1960 Independence and 1963 Republican Constitutions. The 1960 Independence and the 1963 Republican Constitutions respectively enshrined some fundamental principles of fiscal federalism and resource control in view of the level of deprivation percentage accruable regions. In the course of the nation‟s political evolution, these constitutions were either suspended or repealed by the ruling military regimes and the country titled towards what looks like a unitary system but a very strong Federal Government. With the return of democratic governance and the contending developmental problems that the Niger Delta region had successively experienced, there has been a spontaneous call for the institutionalization of resource control and true federalism. Defined as the control and management of resources by states and local governments from whose jurisdictions the resources are extracted, all federal states and local governments from whose jurisdictions the resources are extracted, all federal states, from the Australia, Brazil, Canada, Ethiopia, Germany, India, Malaysia, Switzerland and United States of America have it enshrined in their constitutions. For instance, under the Canadian constitution, the provinces and federal government legislate on natural resources in which the provinces have substantial control over their own natural resources. In the US, states have power over their resources and are subject only to federal taxes and laws on strategic resources. Financial subordination makes mockery of federalism irrespective of how carefully the legal forms may be preserved. The states should not permanently remain dependent on the federal government for survival. In view of the relationship of the subject to Nigeria‟s continuous existence as indivisible entity, it has become necessary to undertake a comprehensive study of the subject from an historical perspective. The 1960 Independence and 1963 Republican constitutions not only granted greater fiscal autonomy to the regions, but also empowered them to compete with one another. This phenomenon has generally been misunderstood. The advocacy for resource control does not seek the exclusive control and ownership of mineral and other resources by the states. This advocacy is built upon the philosophy of justice that the federating states should have a deeper stake in the exploration and exploitation of mineral resources located within their territories. The 36 that together with the Federal Capital Territory make up the federation today have been reduced to beggars, because of their representative gathering every month at Abuja for monthly federal allocations. Only two states – Lagos and Rivers – can pay their workers without the federal intervention.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter deals with the method used in collecting data required in carrying out this research work it explains the procedures that were followed and the instrument used in collecting data.
SOURCES OF DATA COLLECTION
Data were collected from two main sources namely:
- Primary source and
- Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment, the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
POPULATION OF THE STUDY
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information for the study fiscal federalism and the struggle for resource control, the researchers randomly select 200 staff of national economic planning commission as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
INTRODUCTION
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
DATA ANALYSIS
The data collected from the respondents were analyzed in tabular form with simple percentage for easy understanding.
A total of 133 (one hundred and thirty three) questionnaires were distributed and 133 questionnaires were returned.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the challenges of fiscal federalism and the struggle for resource control.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenge of fiscal federalism and resource control
Summary
The issue of fiscal federalism and the share of the country’s resources has been a complex one among the multiethnic nations of the country, Nigeria. The fact that communities surrendered their sovereignty to become one of a confederating unit is not an impetus for more advantageous group to trample on their God given wealth. Being traumatized under a central system of share of resources that derogates their opportunity and right to ownership and development negligence, accompanied with unemployment and inequality, the people continue to remain poor and thus subservient to the aristocratic and opportunist rulers who continue to implement uncompromising resource sharing formula. In this regard therefore, and to complement existential realities, the down trodden minorities agitate for equitable distribution thought resource control and management.
Conclusion
The essence of true federalism is to allow component units of the federation achieve some significant measure of autonomy to manage their affairs. The federalist debate in Nigeria centres essentially on the need to understand the basis of the contract of true federalism and resource control. Despite the contrived arrangement as articulated by the ruling class, the systematic dysfunction has resulted in a series of violent, dramatic and traumatic inter-ethno regional confrontation, ventilating the essence of the debate (Ihejiamaizu, 2001). Political observers have argued that the agitation for resource control is a test case for the enthronement of true federalism for what made the regions strong in the first republic was their financial independence. Each region took care of itself and its needs of itself and its needs within the limits of its internal revenue resources.
Recommendations
No doubt, Nigeria cannot become a strong and united federation unless and until the constituent parts are sufficiently empowered by the enabling practices that conform to the principles of true federalism. It is the recommendations of this paper that:
- A major constitutional reform should be in place to make the states autonomous and truly independent. All manifestation of unitary system of government should be removed from Nigeria‟s federal structure by allowing the states the degree of freedom and autonomy consistent with federalism.
- There is need for review of the revenue allocation formula in order to increase the share of the federating units- the states- to facilitate the discharge of the additional responsibilities discharged to them. The derivation formula should be increased substantially from the current 13% to about 50% for the oil producing states, and the derivation principle should be extended to other resources including solid minerals and agricultural resources.
- An agreed percentage of tax or royalty should be paid by the states to the Federal Government. The federal Government should identify and repeal all legislations that encourage economic oppression, political repression and environmental pollution of the Niger Delta and other parts of the country. 4. The Federal Government should tie accruable fund from the federation account to specific development projects in the oil producing communities to prevent misappropriation. This will enable the oil producing communities to benefit more from the revenue allocated.
- The agitations for resource control should be settled through dialogue, diplomacy, superior argument and legal means instead of recourse to violence and militancy
Reference
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