Editorial
Towards Achieving Fiscal Federalism
For the umpteenth time, calls for a Fiscal Federation reverberated in various parts of the Nigerian State recently, have the familiar disgusting ungainliness of some selffish politicians, not withstanding. This time, however, virtually all states within the South-South geopolitical zone, which resources largely account for the country’s economic survival are united in calls for a truly Federal System of government that guarantees them management of their endowments.
With the opportunity afforded by the on-going public hearing convoked by the National Assembly towards reviewing the 1999 Constitution, the states have been agitating for a review of, among others, provisions under Sections, 44 (3) and 162-168 of the constitution.
Joining Rivers and Cross River States, Akwa Ibom and Bayelsa States, added their voices to the collective protest and demanded a constitutional relief that allows them control of their natural resources and the abolition of the current revenue allocation formula, enhanced by the vexatious provisions.
Section 44 (3) of the 1999 Constitution States, Notwithstanding the foregoing provisions of this section, the entire property in, and control of all minerals, mineral oils and natural gas in, under or upon any land in Nigeria or in, under or upon the territorial waters and the Exclusive Economic zone of Nigeria shall be managed in such manner as may be prescribed by the National Assembly.
By this singular provision, the oil producing states argue, they have been denied the inalienable right to manage their own economic resources, which, based on their persistent protests, negates the essence and spirit of a Federal System of government.
Even more worrisome are provisions in Section 162-168 which dwell predominantly on Federal revenue, and allocations.
Section 162 (10, a-c), for instance, states “For the purposes of subsection (1) of this Section,” revenue means any income or return accruing to or derived by the Government of the Federation from any source and includes
(a) Any receipt, however described arising from the operation of law;
(b) any return, however described, arising from or in respect of any property held by the Government of the Federation; (and) any return by way of interest on loans and dividends in respect of shares or interest held by the Government of the Federation in any company or statutory body.
Added to these is the obnoxious land use Act with its audacious annexation of all lands and resources there-in, there under and even above their land for the Federal Government, proceeds of which are distributed to all other states based on population, equality of states, internal revenue generation, land mass, terrain as well as population density.
Not only does the provision smack of natural injustice, it inadvertently appeals to communism as against the Federal System Nigeria today subscribes.
These protests are not new, but they have been overtly ignored by successive governments and the National Assembly, which membership, largely weighed in favour of the benefiting majority, who very frequently out-votes the Minority States whose natural resources are shared on daily basis.
But it must be said, and clearly too, that the refusal to heed to wise counsel has at various times threatened the peace and unity of the Nigerian State. Again failure to do the right thing has variously bungled the opportunity to correct obvious cases of injustice. The movement from Civil protest to armed militancy by youths of the Niger Delta area. Now, is yet another opportunity for the National Assembly to tinker with the statusquo and decide whether Nigeria needs the Federal System or not.
We are aware that a true Federation must be one of choice by all the Federating units who also work and agree on basis of such partnership. But sadly, since that is not the case with the Nigerian example, it will be everything but just to continue the way we have gone over the years, pretending that it was a consensus among all units in the first place.
The Tide believes that the right option is to embrace a Fiscal Federation that encourages healthy competition, research, ingenuity and hard work among the Federating Units and not the type of federalism that makes several units dependent on the spoils of a few.
This is why we support wholly the calls for resource control provided that the federating units pay to the centre, the prescribed taxes and earnings as may be decided upon by the National Assembly. We say so not because it affects Niger Delta more today, but that it could affect Kano or Ogun or any other state more tomorrow.
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Editorial
No To Political Office Holders’ Salary Hike
Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has unveiled a gratuitous proposal to increase the salaries of political and public office holders in the country. This plan seeks to fatten the pay packets of the president, vice-president, governors, deputy governors, and members of the National and State Assemblies. At a time when the nation is struggling to steady its economy, the suggestion that political leaders should be rewarded with more money is not only misplaced but insulting to the sensibilities of the ordinary Nigerian.
What makes the proposal even more opprobrious is the dire economic condition under which citizens currently live. The cost of living crisis has worsened, inflation has eroded the purchasing power of workers, and the naira continues to tumble against foreign currencies. The majority of Nigerians are living hand to mouth, with many unable to afford basic foodstuffs, medical care, and education. Against this backdrop, political office holders, who already enjoy obscene allowances, perks, and privileges, should not even contemplate a salary increase.
It is, therefore, not surprising that the Socio-Economic Rights and Accountability Project (SERAP) has stepped in to challenge this development. SERAP has filed a lawsuit against the RMAFC to halt the implementation of this salary increment. This resolute move represents a voice of reason and accountability at a time when public anger against political insensitivity is palpable. The group is rightly insisting that the law must serve as a bulwark against impunity.
According to a statement issued by SERAP’s Deputy Director, Kolawole Oluwadare, the commission has been dragged before the Federal High Court in Abuja. Although a hearing date remains unconfirmed, the momentous step of seeking judicial redress reflects a determination to hold those in power accountable. SERAP has once again positioned itself as a guardian of public interest by challenging an elite-centric policy.
The case, registered as suit number FHC/ABJ/CS/1834/2025, specifically asks the court to determine “whether RMAFC’s proposed salary hike for the president, vice-president, governors and their deputies, and lawmakers in Nigeria is not unlawful, unconstitutional and inconsistent with the rule of law.” This formidable question goes to the very heart of democratic governance: can those entrusted with public resources decide their own pay rises without violating the constitution and moral order?
In its pleadings, SERAP argues that the proposed hike runs foul of both the 1999 Nigerian Constitution and the RMAFC Act. By seeking a judicial declaration that such a move is unlawful, unconstitutional, and inconsistent with the rule of law, the group has placed a spotlight on the tension between self-serving leadership and constitutionalism. To trivialise such an issue would be harum-scarum, for the constitution remains the supreme authority guiding governance.
We wholeheartedly commend SERAP for standing firm, while we roundly condemn RMAFC’s selfish proposal. Political office should never be an avenue for financial aggrandisement. Since our leaders often pontificate sacrifice to citizens, urging them to tighten their belts in the face of economic turbulence, the same leaders must embody sacrifice themselves. Anything short of this amounts to double standards and betrayal of trust.
The Nigerian economy is not buoyant enough to shoulder the additional cost of a salary increase for political leaders. Already, lawmakers and executives enjoy allowances that are grossly disproportionate to the national average income. These earnings are sufficient not only for their needs but also their unchecked greed. To even consider further increments under present circumstances is egregious, a slap in the face of ordinary workers whose minimum wage remains grossly insufficient.
Resources earmarked for such frivolities should instead be channelled towards alleviating the suffering of citizens and improving the nation’s productive capacity. According to United Nations statistics, about 62.9 per cent of Nigerians were living in multidimensional poverty in 2021, compared to 53.7 per cent in 2017. Similarly, nearly 30.9 per cent of the population lives below the international poverty line of US$2.15 per day. These figures paint a stark picture: Nigeria is a poor country by all measurable standards, and any extra naira diverted to elite pockets deepens this misery.
Besides, the timing of this proposal could not be more inappropriate. At a period when unemployment is soaring, inflation is crippling households, and insecurity continues to devastate communities, the RMAFC has chosen to pursue elite enrichment. It is widely known that Nigeria’s economy is in a parlous state, and public resources should be conserved and wisely invested. Political leaders must show prudence, not profligacy.
Another critical dimension is the national debt profile. According to the Debt Management Office, Nigeria’s total public debt as of March 2025 stood at a staggering N149.39 trillion. External debt obligations also remain heavy, with about US$43 billion outstanding by September 2024. In such a climate of debt-servicing and borrowing to fund budgets, it is irresponsible for political leaders to even table the idea of inflating their salaries further. Debt repayment, not self-reward, should occupy their minds.
This ignoble proposal is insensitive, unnecessary, and profoundly reckless. It should be discarded without further delay. Public office is a trust, not an entitlement to wealth accumulation. Nigerians deserve leaders who will share in their suffering, lead by example, and prioritise the common good over self-indulgence. Anything less represents betrayal of the social contract and undermines the fragile democracy we are striving to build.
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