http://odili.net/news/source/2011/may/27/818.html

[size=14pt]Nigerian federalism is fraudulent - Tinubu, Aregbesola, Fashola [/size]

Tunde Odesola


The leadership of the Action Congress of Nigeria has described the country's federalism as anti-people.

Leaders of the party, who spoke at an induction ceremony held in Osogbo for all ACN's legislators, nationwide, on Thursday, said the country's federalism ran counter to development.

The leaders, who spoke at the ceremony included the National Chairman of the party, Chief Bisi Akande; a former Governor of Lagos State, Asiwaju Bola Tinubu; Osun State Governor, Mr Rauf Aregbesola, Lagos State Governor, Mr Babatunde Fashola, and the National Secretary of the party, Dr Usman Bugaje.

A cross-section of the leaders called for a review of the constitution to reflect the desires of the citizenry.

In his paper entitled, Leadership and party supremacy, Akande said, "The twin major ingredients of cohesion and discipline are leadership and ideology.

"Ideology represents objectives while leadership provides social influence that motivates people to serve.

"We are constantly promising Nigerians to effect a measured change from what Peoples Democratic Party had fraudulently been doing in the past 12 years."

Tinubu said the Federal Government had no solution to the myriad problems besetting the country, stressing that the government at the centre was perpetrating corruption via the country's federal structure.

The National Secretary of the party, Dr Usman Bugaje, said only the ACN was capable of providing the template for Nigeria's greatness, stressing that the party would continue to work out the political salvation of the country.

Tinubu contended that it was wrong for the Federal Government to unilaterally fix a minimum wage for the 36 states of the country.

Tinubu explained that it was wrong of the Federal Government to unilaterally operate the Excess Crude Account, sell national properties and institutions without giving the proceeds to the state governments.

He said, "The country's Constitution was not written, debated and adopted by the generality of Nigerians. It was the military that wrote it without inputs from the generality of Nigerians. Sovereignty, in our constitution, was taken from the people and given to the Federal Government."

Fashola called for a new allocation sharing formula, which would see the Federal Government receiving 35 per cent of the country's monetary resources while the states take 42 per cent and local government takes 23 per cent.

Like Tinubu, Fashola faulted the Federal Government for fixing the minimum wage for all states, saying that the action negated productivity and creativity.


Fashola, who explained that the minimum wage of blue collar jobs could be fixed, however, argued that it is difficult to fix the wage of white collar jobs.


Supporting the clamour for the establishment of state police, Fashola described the present arrangement wherein the Federal Government controls the police as an aberration.


He said the creation of state police was a veritable avenue of providing mass employment to teeming Nigerian youths, adding that it was wrong of the Federal Government to keep the money charged on Value Added Tax.

@NLers
1- I thought true federalism was all about federal units generating their own income and then paying taxes to the center, What I am seeing here is a desire to continue depending on the FG for revenue, this is quite strange comming from advocates of true federalism??

2- Another strange desire I noticed in this articule is a desire to keep VAT but share the revenue generated by others, I think is is just plain contradictory  and selfish,

What do you guys think

The governors forum is also in support of this. Including Peter Obi of Anambra. So isn't really just the ACN alone calling for this

DaLover:

http://odili.net/news/source/2011/may/27/818.html

@NLers
1- I thought true federalism was all about federal units generating their own income and then paying taxes to the center, What I am seeing here is a desire to continue depending on the FG for revenue, this is quite strange comming from advocates of true federalism??

2- Another strange desire I noticed in this articule is a desire to keep VAT but share the revenue generated by others, I think is is just plain contradictory  and selfish,

What do you guys think

Wether by ommission or commission , you thought wrong. "True federalism" , as applicable to the agitations of Nigerians themselves, fundamentally involves the devolution of power away from the centre to grant more developmental autonomy to States and regions. There are other issues but this is the central gist . Most of what the ACN have stated in this article are common sense utterances entirely in line with the sincere practice of the type of "true federalism" that can assist rapid development for Nigeria. I really don't see how, for example, you can have a problem with the justified request for more money for State use in the allocation sharing formula when a wasteful centre pays Senators 4 times the $400, 000 salary of Obama.

True federalism is certainly not about "federal units generating their own income and then paying taxes to the center " because that notion bypasses the responsibility of the FG to disburse National income fairly and in a fiscally responsible manner that aids development.  You don't really seem to understand (or are deliberately pandering to mischief) with your grossly erroneous take of what you assume "true federalism" to be so one cannot expect you to view what the ACN have said objectively. It is funny you are quick to misinterprete what is written while ignoring the laudable issues stated in the article like the clamour for State policing, the wrongness of the FG fixing minimum wage without recourse to the financial ability of States to comply , the call for a review of the allocation sharing formula, etc . Clearly you are not interested in a fair assessment of issues. That is why , with all due respect, what you write below is rubbish not worthy of discussion by anyone who knows the genuine developmental needs of Nigeria that will not be aided by myopic protectionism and feudal thinking.

Another strange desire I noticed in this articule is a desire to keep VAT but share the revenue generated by others, I think is is just plain contradictory  and selfish,

What do you guys think

Gbawe:

Wether by ommission or commission , you thought wrong. "True federalism" , as applicable to the agitations of Nigerians themselves, fundamentally involves the devolution of power away from the centre to grant more developmental autonomy to States and regions. There are other issues but this is the central gist . Most of what the ACN have stated in this article are common sense utterances entirely in line with the sincere practice of the type of "true federalism" that can assist rapid development for Nigeria. I really don't see how, for example, you can have a problem with the justified request for more money for State use in the allocation sharing formula when a wasteful centre pays Senators 4 times the $400, 000 salary of Obama.

True federalism is certainly not about "federal units generating their own income and then paying taxes to the center " because that notion bypasses the responsibility of the FG to disburse National income fairly and in a fiscally responsible manner that aids development.  You don't really seem to understand (or are deliberately pandering to mischief) with your grossly erroneous take of what you assume "true federalism" to be so one cannot expect you to view what the ACN have said objectively. It is funny you are quick to misinterprete what is written while ignoring the laudable issues stated in the article like the clamour for State policing, the wrongness of the FG fixing minimum wage without recourse to the financial ability of States to comply , the call for a review of the allocation sharing formula, etc . Clearly you are not interested in a fair assessment of issues. That is why , with all due respect, what you write below is rubbish not worthy of discussion by anyone who knows the genuine developmental needs of Nigeria that will not be aided by myopic protectionism and feudal thinking.

It is definately obvious that your support for ACN ensures that you see no wrong in anything done, maybe you have heard the saying that he who plays the piper dictates the tune, how can you be talking of monthly stipends from the federal government and at the same time want to be in total control of your affairs, can't you see the folly of your ways. At a time when reasonable minds are saying that dependence on centrally shared revenue is the source of our problems, our laziness, our lack of productivity.

Wether by ommission or commission , you thought wrong. "True federalism" , as applicable to the agitations of Nigerians themselves, fundamentally involves the devolution of power away from the centre to grant more developmental autonomy to States and regions.

Gbawe are you telling me you don't know the relationship between money and power in the context of political relationships. If the federal gevernment makes the money and shares it to the states and you expect the giver to relinquish power to the taker, what a dreamer you are?

ACN leaders claim to follow the doctrine of awolowo in everything apart from fiscal reponsibility, I got the following quote from an article on Awolowo http://www.nigerianbestforum.com/generaltopics/?p=11775

Chief Awolowo, according to Osuntokun, advocated fiscal federalism, “that is to say, each part of Nigeria should keep the bulk of its revenue while contributing to maintain common services at the centre”. The Action Group (AG) was formed in 1950. Awolowo was the Premier of Western Region from 1852 to 1959 when he yielded the position to his deputy, Chief Samuel Ladoke Akintola. Awolowo became Leader of Opposition in the Federal House Representation in Lagos. In 1963 he was arrested, tried and jailed for treasonable felony. He was released in August 1966 and a year later was appointed Vice-Chairman of Federal Executive Council and Federal Commissioner for Finance in the military government of General Yakubu Gowon.

Are you telling me that you cannot see a shift in mindset of these Awolowo followers, is this not hypocrazy, all this is because they still have their eyes on ND oil, if the supposedly most educated set of people in the country are still set on lazily leeching of the ND oil, then what hope for the rest of us (the other 5 underdeveloped regoins),

Clearly you are not interested in a fair assessment of issues.

Clearly it is you who refuses to see the big picture, and that is you can not ask for all the goodies that come the federalism and not want to work for it, expecting to control your own police, set your worker salaries, etc and depend on the FG for pay for it.

what you write below is rubbish not worthy of discussion by anyone who knows the genuine developmental needs of Nigeria that will not be aided by myopic protectionism and feudal thinking.

Clearly you have no dignity or shame? how can you want to keep your revenue (VAT) generated as a result of your resources (Population) and expect to share the revenue generated by the natural resources of other states,

I think the fact that they are publicly calling for restructuring and total reform of the federation is a good first step. We should encourage that.

I agree that giving the FG a pre-determined 35% is not good enough, but that is about the same thing as States paying 35% tax on their collected revenue. The amount may be too high, but the real issue is to determine who has the right to collect these taxes from revenue within each state in the first instance.

Income and revenue currently goes to the FG directly, then shared down to the states monthly. I think that encourages federal corruption, gives us a central government with too much power, essentially rubbishing our federalism claims.

To make our "True Federalism" work, We need to go the VAT way with ALL INCOMES. We currently have the FG with too much control over finances and National revenue. That is the issue.

EX: Shell Oil company should be paying State taxes in it's state of domicile e.g Lagos or Delta. Same should apply to ALL INCOMES generated within a State, including Personal income.

There is no need for the FG to control Oil revenue or any revenue accruing from companies operating in individual Oil states or ANY state at all, rather, they should tax the income of those companies federally based on pre-determined percentages, while the State does the same by taxing their profits/revenue and the LG can access fees and property taxes.

The same system should apply to individual income, Property/Real Estate, Capital gains e.t.c  Also Excise duties and fees should be accessed this way. I see no reason why the FG should collect duties at a port owned by Lagos or Rivers state, or say the city of ONNE( if we adopt vibrant independent City Governments )

The FG shouldn't also lay claim to the income of the Kano Water Corporation or Adamawa Tourism revenue. All FG owned companies should be transferred to the State for Privatisation. Let private companies run Industry then pay taxes to government. EX: The NNPC issue should be resolved in that manner.

Now, Nigeria can have an agreement among its constituent units on what percentage of their State income should be contributed to the Federal Account. It should be based on pre-determined percentages, So a richer state will definitely contribute more Naira than a poorer one. But the contribution must go from state to FG and not FG to state.

Also, Federal Civil service expenditure and Grant to poorer States or for National services like Parks, Primary education funding and grants, Federal Emergency Management Large Federal infrastructual Projects and the Military should come from the account administered by the FG through Legislative oversight based on receipts from federal taxes and state contributions to the FG account.

Individual citizens and companies should be taxed by both Federal and State Governments where applicable(some States may decide not to collect state individual taxes) while LGs can rely on sale taxes, property taxes and local fees to run their government.

Governments need to focus on overseeing regulations and attracting businesses to their States, LG or Region -whichever one we adopt.

BTW, State Police is a no-brainer really, what we currently practice is a joke.

Kilode?!:

I think the fact that they are publicly calling for restructuring and total reform of the federation is a good first step. We should encourage that.

I agree that giving the FG a pre-determined 35% is not good enough, but that is about the same thing as States paying 35% tax on their collected revenue. The amount may be too high, but the real issue is to determine who has the right to collect these taxes from revenue within each state in the first instance.

Income and revenue currently goes to the FG directly, then shared down to the states monthly. I think that encourages federal corruption, gives us a central government with too much power, essentially rubbishing our federalism claims.

To make our "True Federalism" work, We need to go the VAT way with ALL INCOME. We currently have the FG with too much control over finances and National revenue. That is the issue.

EX: Shell Oil company should be paying State taxes in it's state of domicile e.g Lagos or Delta. Same should apply to ALL INCOME generated within a State, including Personal income.

There is no need for the FG to control Oil revenue or any revenue accruing from companies operating in individual Oil states or ANY state at all, rather, they should tax the income of those companies federally based on pre-determined percentages, while the State does the same by the taxing their profits/revenue and the LG can access fees and property taxes.

The same system should apply to individual income, Property/Real Estate, Capital gains e.t.c  Also Excise duties and fees should be accessed this way. I see no reason why the FG should collect duties at a port owned by Lagos or Rivers state, or say the city of ONNE( if we adopt vibrant independent City Governments )

The FG shouldn't also lay claim to the income of the Kano Water Corporation or Adamawa Tourism revenue. All FG owned companies should be transferred to the State for Privatisation. Let private companies run Industry then pay taxes to government. EX: The NNPC issue should be resolved in that manner.

Now, Nigeria can have an agreement among it's constituent units on what percentage of their State income should be contributed to the Federal Account. It should be based on pre-determined percentages, So a richer state will definitely contribute more Naira than a poorer one. But the contribution must go from state to FG and not FG to state.

Also, Federal Civil service expenditure and Grant to poorer States or for National services like Parks, Primary education funding and grants, Federal Emergency Management Large Federal infrastructual Projects and the Military should come from the account administered by the FG through Legislative oversight based on receipts from federal taxes and state contributions to the FG account.

Individual citizens and companies should be taxed by both Federal and State Governments where applicable(some States may decide not to collect state individual taxes) while LGs can rely on sale taxes, property taxes and local fees to run their government.

Governments need to focus on overseeing regulations and attracting businesses to their States, LG or Region -whichever one we adopt.

BTW, State Police is a no-brainer really, what we currently practice is a joke.

GBAM!!

Kilode?!:

I think the fact that they are publicly calling for restructuring and total reform of the federation is a good first step. We should encourage that.

I agree that giving the FG a pre-determined 35% is not good enough, but that is about the same thing as States paying 35% tax on their collected revenue. The amount may be too high, but the real issue is to determine who has the right to collect these taxes from revenue within each state in the first instance.

Income and revenue currently goes to the FG directly, then shared down to the states monthly. I think that encourages federal corruption, gives us a central government with too much power, essentially rubbishing our federalism claims.

To make our "True Federalism" work, We need to go the VAT way with ALL INCOME. We currently have the FG with too much control over finances and National revenue. That is the issue.

EX: Shell Oil company should be paying State taxes in it's state of domicile e.g Lagos or Delta. Same should apply to ALL INCOME generated within a State, including Personal income.

There is no need for the FG to control Oil revenue or any revenue accruing from companies operating in individual Oil states or ANY state at all, rather, they should tax the income of those companies federally based on pre-determined percentages, while the State does the same by the taxing their profits/revenue and the LG can access fees and property taxes.

The same system should apply to individual income, Property/Real Estate, Capital gains e.t.c  Also Excise duties and fees should be accessed this way. I see no reason why the FG should collect duties at a port owned by Lagos or Rivers state, or say the city of ONNE( if we adopt vibrant independent City Governments )

The FG shouldn't also lay claim to the income of the Kano Water Corporation or Adamawa Tourism revenue. All FG owned companies should be transferred to the State for Privatisation. Let private companies run Industry then pay taxes to government. EX: The NNPC issue should be resolved in that manner.

Now, Nigeria can have an agreement among it's constituent units on what percentage of their State income should be contributed to the Federal Account. It should be based on pre-determined percentages, So a richer state will definitely contribute more Naira than a poorer one. But the contribution must go from state to FG and not FG to state.

Also, Federal Civil service expenditure and Grant to poorer States or for National services like Parks, Primary education funding and grants, Federal Emergency Management Large Federal infrastructual Projects and the Military should come from the account administered by the FG through Legislative oversight based on receipts from federal taxes and state contributions to the FG account.

Individual citizens and companies should be taxed by both Federal and State Governments where applicable(some States may decide not to collect state individual taxes) while LGs can rely on sale taxes, property taxes and local fees to run their government.

Governments need to focus on overseeing regulations and attracting businesses to their States, LG or Region -whichever one we adopt.

BTW, State Police is a no-brainer really, what we currently practice is a joke.

I am in total agreement with this sweet post, except for some fine details like FG collecting individual taxes, and police, I believe community policing should be encouraged as it happens in the US, community police, state police and FG police, each with their jurisdictions, This is basically the type of federalism we crave for, The structural changes the ACN leadership is asking for is definately not possible without true fiscal federalism, All@of a sudden what was good for the geese is no longer good for the gander,

DaLover:


I am in total agreement with this sweet post, except for some fine details like FG collecting individual taxes,

I think FG will need to take some individual taxes, it could be a much lesser %. Unless we want to Practice a very loose Confederacy where Your only connection to the Central Government is through your Regional Government.

and police, I believe community policing should be encouraged as it happens in the US, community police, state police and FG police, each with their jurisdictions,

I totally agree. As long as we clearly define the differences between State, Community (city) and Federal laws.

This is basically the type of federalism we crave for, The structural changes the ACN leadership is asking for is definately not possible without true fiscal federalism, All@of a sudden what was good for the geese is no longer good for the gander,

At least ACN is talking and pushing the Conversation, that is what "fresh Air" PDP should be pushing for, they have the power to do these things and the numbers in collaboration with progressive opposition elements.

It will be sad if come 2015 we wake up to see that we wasted another 4 years protecting the interests of the Center-Must-Stay-Strong, Pro-Establishment Military-Politician hawks holding us back since 1966.