Editorial
Still On Fiscal Federalism
Former president of the Nigeria Bar Association and a Senior Advocate of Nigeria, Chief Olisa Agbakoba, recently expressed popular sentiment among reputable Nigerians, when he backed his determination to institutionalise a truly Fiscal Federation in post golden jubilee Nigeria by sending a bill to the National Assembly.
With a title: “An Act to Alter the Constitution of the Federal Republic of Nigeria, 1999…” Agbakoba has appealed to the Seventh National Assembly to amend the Constitution to reflect true federalism with the Federal Government wielding limited powers and responsibilities.
In the Bill, Agbakoba, among others, is seeking for the devolution of powers from the centre to the federating units in items such as health, education, agriculture, commerce and industry, transportation, prisons and police, housing and property development, land administration and management, including the mining of the minerals therein, among others.
Agbakoba’s logic, we believe, is in tandem with some of the yearnings of President Goodluck Jonathan’s Presidency, which we are aware, is currently consulting stakeholders on a whole range of issues in his proposed Constitutional amendment. The president’s proposal is said to include between 30 and 50 amendments in the provisions of the Constitution, encompassing the six-year single tenure for president, and governors, abolition of joint state-local government accounts, constructive true federalism, removal of prison management from the exclusive list, and new revenue allocation formula, among others.
The Tide agrees with both Agbakoba and Jonathan, among several other notable Nigerians, that a true federation cannot merely allocate pitance in funds to the federating units, and keep a bulksome without consciously devolving more powers to them. The truth of the matter is that the quasi federal system Nigeria operates today is not delivering the required dividends to the people because the centre is too heavy, indolent and corrupt.
We believe that many Nigerians are united over the need and the push to revert to the status quo ante and make Nigeria live the true meaning of a federal state, as in pre-1966 Nigeria. This is because, among politicians, labour leaders, lawyers, businessmen, human rights activists and other professionals, the direction is the same: There is a glaring awareness that ensuring fiscal federalism would be the yawning imperative Nigeria cannot do without, not only for socio-economic and political stability, but for the much-sought-after rapid development.
The Tide holds that the present concept of federal arrangement is retrogressive and lacks competitiveness. In fact, it is a direct opposite of what the founding fathers envisioned for the country at birth.
The concept of fiscal federalism was first introduced in Nigeria in 1946, following the adoption of the Richards Constitution. The period 1947-52 marked the beginning of the recognition of sub-national governments during which financial responsibilities were devolved to the three regions-North, West and East.
At independence in 1960, these three regions were clearly autonomous and controlled their primary resources, and thus, were able to generate ample revenue individually. From 1960 to 1966, the same constitution gave the federating regions so much powers that left the central government with barely 15 per cent of the nation’s earnings.
It was this system, as provided for in the nation’s constitution, that laid the foundation for the rapid socio-economic development witnessed in the regions during the First Republic. Unfortunately, that giant stride that could have put the country firmly in the league of developed nations of the world, was jettisoned as soon as the military took over the reins of governance, using the civil war as justification for the revision of that fiscal formula.
Today, there are 36 states and the Federal Capital Territory (FCT) with a near status of a state and 774 local governments recognised by the Constitution. If ethnic-based resource control, which has for years powered calls for a sovereign national conference is unacceptable, then the only choice left is to use the existing states and local governments as the federating units.
The Tide believes that Jonathan can rework Nigeria by the mock federal arrangement, which has been variously and derogatorily described as ‘lopsided’, ‘quasi’ federal structure to function like a truly federal system of government in which the federating units control their resources and pay taxes to the centre. That way, the Federal Government focuses on such exclusive issues as national security and defence, foreign policy, currency minting and monetary policy, among other limited concurrent responsibilities.
If Jonathan achieves these, in addition to ensuring 24-hour uninterrupted power supply, then, Nigeria is on the threshold of history, and indeed, transformation.
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.
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.
Editorial
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