Opinion
Sharing Of Revenues And Loots
A Political Bureau set up in 1987 to work out a political blueprint for Nigeria observed in its report that the allocation and sharing of revenue have been among the most contentious and controversial issues in the nation’s political history. Since 1946, various formulae had evolved, none of which gained general acceptance among the component units of the country.
There was a Philipson Commission on revenue sharing or allocation which was based on the principles of derivation and even progress. In 1951 there was another review of revenue allocation which retained the principle derivation but added the principles of needs, national interest and granted fiscal autonomy for the three Regions. In 1953 the principle of derivation was given greater emphasis, with revenues derived from import duties and excise tax going to he regions.
In 1958, a revenue sharing commission retained the principles of need, even development, derivation and fiscal autonomy, but introduced a Distributable Pool Account (DPA). That was the beginning of the slogan of sharing “national cake.” With the creation of Mid-Western region in 1964, the sharing formula was adjusted giving the North 42 percent, East 30 percent, West 20 percent and Mid-West 8 percent. Principle of land mass featured prominently.
With 12-state structure in 1967, the next revenue sharing formula was by Decree No. 15 of that year, whereby the old principles were retained, giving the Northern states the old region’s 42 percent and the six Southern states sharing what remained in the Distributable Pool Account. Decree 12 of 1970 reduced the sharing principles to two, based on population and equality of states. Revenue from export duties was reduced from 100 percent to 60 percent because of post-war reconstruction, justifying federal government’s monopoly.
In 1971 and 1975 radical changes took place, reducing revenue going to the states, with Decree No. 6 of 1975 making states’ share of oil revenue 20 rather than 45 percent. Aboyade committee (1977) recommendations were considered too technical and rejected. Okigbo Presidential Commission (1980) recommended 53 percent share for federal government but that was increased to 55 percent. Allocation to local governments was reduced to 8 percent from 10; states had 30 percent and 7 percent went into Special Funds.
Adjustments were made in 1981 by a revenue act, leaving federal government’s share unchanged, local governments share was increased to 10 percent; states’ share to 30.5 percent, reducing the Special Funds to 4.5 percent. Decree No. 36 of 1984 gave state governments 32.5 percent, reducing the Special Funds further to 2.5 percent.
Decree No. 49 of 1989 established the National Revenue Mobilisation, Allocation and Fiscal Commission, with mandate to mobilize and review public sector revenue, including disbursement, etc. With Decree No. 3 of 1991, revenue allocation formula was altered as follows: federal government 50 percent, state governments 25 percent; local governments 20 percent and special funds 5 percent. In less than 6 months this formula was changed to 48.5; 24 and 20 percents respectively for the three tiers of government.
The purpose of these citations is to emphasise the fact that the nation’s revenue sharing formulae have been quite unstable. The scrambles for creation of more states are associated with the desire to share or benefit from the proverbial national cake. The era of looting of the national treasury is associated with military rule. What is quite obvious in Nigeria’s political and economic history is that there are imbalances and lop-sidedness which give rise to instability and frictions. These issues have not been resolved.
The same instability and lop-sidedness that have characterised revenue sharing formula, coupled with deliberate looting of the nation’s resources, are also playing out in the sharing of recovered loots. The purported formula of “poorest of the poor” being used for disbursement of recovered loots tends to follow the same pattern of selectiveness and arbitrariness.
Who determines the “poorest of the poor” in each of the states of the federation? Would political and sectional interests not render the exercise of sharing of recovered loots unreliable and unfair? Even though international interests are involved in the loot sharing exercise, can there be any guarantee of transparency in the disbursement of the funds?
The most glaring indication of imbalance and lop-sidedness in the disbursement of recovered loots is the attitude towards the zones that produce the mineral oil which provided the revenue that was looted. Have various spurious formulae and principles not been used in the past in revenue allocation and sharing in Nigeria? To say the least, mineral oil producing communities are among the poorest and most marginalized people in the Nigerian federation. Mineral oil producing localities deserve a fair treatment.
Dr. Amirize is a retired lecturer, Rivers State University, Port Harcourt.
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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