On
June 27, 2011, we stated that creating additional state is not economical
because it will increase the cost of governance in the country without any
increase in the revenue base of the nation.
Unfortunately,
the just-concluded National Conference has recommended the creation of
additional 18 states.
This
will bring the number of states in the country to 54. Just last week, the
Senate President said he is committed to seeing through state creation. Here is
what I said then.
When
on May 27 1967, General Yakubu Gowon announced the 12-state structure for
Nigeria, it was to solve a perceived political problem threatening the
continued existence of Nigeria as a single entity.
It
was a political solution to the threat of secession. Gowon was humble enough to
point out the economic consequences the nation was faced with if the action was
not taken. He had said: “The consequence of these illegal sets has been
the
increasing deterioration of the Nigerian economy.
“It
has also led to increasing loss of foreign confidence in the ability of
Nigerians to resolve the present problems. This has been reflected in the
stoppage of the inflow of much badly needed additional foreign investment, it
has put a brake on economic development so essential to the well-being of the
common man and the ordinary citizen whose only desire is for peace and
stability to carry on his daily work.
“The
main obstacle to future stability in this country is the present structural
imbalance in the Nigerian federation. This is why the item in the Political and
Administrative Programme adopted by the Supreme Military Council last month is
the creation of states as a basis for stability.”
The
much desired unity, economic development and inflow of foreign investment have
continued to elude the country several decades after the first shot at state
creation. Ever since then, the politics of state creation has not taken into
account the ability of these states to sustain their existence.
Of
the 36 states in the country, only Lagos, Rivers and perhaps Kano states, can
through internally-generated revenue pay their bills. Others have to wait for
the monthly federal allocation for them to pay their bills.
The internally-generated
revenue of the existing states in the country cannot even pay the monthly wage
bill of teachers in the various states. Some local governments are known to
have generated not more than one million naira in a year.
In
the face of this, the Senate President is quoted as saying that more states
will be created in the life of the seventh National Assembly. Senate President,
David Mark, was quoted last week to have said that the National Assembly
remained committed to amending the 1999 Constitution to give room for the
creation of more states in Nigeria.
Senator
Mark, who gave the assurance in his home town, Oturkpo, maintained that state
creation was a certainty because the National Assembly was confident that the
creation of more states would enhance development and bring government closer
to the people.
It
will appear that the Senate President is oblivious of the cry of Nigerians
against the high cost of governance in the country that has robbed the people
of the much needed funds for development. Creation of more states will further
raise the already high cost of governance in the country.
When
new states are created, the membership of the National Assembly will increase
by the proportion of the increase in the number of states. Each additional
member of the National Assembly will bring additional cost to the nation.
By
CBN Governor Sanusi Lamido Sanusi’s revelation recently, the National Assembly
spends 25 per cent of the overhead cost of running the Federal Government. When
more states are created, the National Assembly overhead will jump to 30 or 40
per cent of total overhead. This certainly is not economical for the nation.
Each
of the states to be created will become a new cost centre to the federation
account. The newly created states will need fresh civil service of their own, a
legislature, governor, aides to the governor, commissioners, local governments
etc. All these are new cost centres to the federation.
At
the moment, both the federal and state governments spend close to 70 per cent
of their annual budgets on salaries and cost of running the government. There
is little or nothing left for infrastructure and other social services. The
result is the high level of under-development in the country.
As
at last week, existing state governments are crying out aloud that they cannot
pay the N18,000 minimum wage approved for civil servants by the Federal
Government. They thus call for a new revenue allocation that will allocate more
resources from the federation account to them.
The
big issue is: Why are Nigerian politicians not talking of how to develop more
revenue channels to increase available resources for distribution but just how
to share what is available by accident of nature? Revenue allocation became contentious the very
day General Gowon set in motion the machinery for state creation.
In
his May 27, 1967 speech he said: “As these states are established, a new
Revenue Allocation Commission consisting of international experts will be
appointed to recommend an equitable formula for revenue allocation taking into
account the desires of the states.”
As
new states are created, new revenue allocation formula is evolved. The irony is
that as more states are created, the share of the states from the federation
account diminishes.
Because
politicians feel the big purse is always there to grab from, they continue in
the agitation for state creation to placate the undiscerning citizenry, knowing
full well that these states are not viable.
Nigeria
does not need additional states.
Creating
unviable states will create more economic problems for the nation. In fact,
Nigeria should be thinking of consolidating the existing states by collapsing
them into the present six geo-political zones.
This
will allow for a true federalism to emerge as each zone will have to develop
its internal resources to empower and develop the area in their jurisdiction,
not the creation of additional states that will be perpetual liability.
Vanguard
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