Before The Confab Resumes …A Case For Improved Derivation

When the National Conference resumes plenary early next month, after a forced recess, it would still be faced with one of the most thorny issues that informed a dialogue of the kind. It will discuss, and if possible, fashion a final recommendation on the report of its Committee on Devolution of Power.
Under this are issues such as resource control, derivation principle, revenue sharing formula and the development and exploitation of mineral resources nationwide. Let’s not forget, conference had favoured fiscal federalism with states as federating units.
This means all issues must be tailored towards actualizing true federalism in its proper sense; quasi-independence of federating units, resource development and control, and internal security, among all others.
However, the evolution of states in Nigeria and their dependence on hand-outs from the central government must first be put in context, if we are to appreciate the real and apparent road-blocks to actualising fiscal federalism.
From independence when Nigeria had the Northern, Western and Eastern regions, to post-civil war’s 12 states, the country today has 36 states, created not based on economic viability but mainly frivolous yardsticks that tilt towards total dependence on oil and gas produced exclusively in the Niger Delta region.
Among the yardsticks are landmass, population, political integration and essentially reward, for political and military tin-gods. This is without consideration of the challenges in years after oil and gas.
Ironically, every state in the federation has the potential to identify, develop and control its own resources, be it mineral or agriculture. Before the discovery of oil in commercial quantities more than 50 years ago in Oloibiri, each of the regions developed their resources and enjoyed between 50 and 100 per cent control.
Even today, there are states of the federation that are rich in gold deposits and other solid minerals, which if developed, could check the total dependence on oil. These are reluctant to do so, content with the monthly allocations they get from the central government, which enjoys near total control of all mineral resources.
Section 44(3) of the 1999 Constitution, as amended states: Notwithstanding the foregoing provisions of this section, the entire property in and control of all minerals, mineral oil 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”.
This is against the dictates of true Federalism. It was however, fashioned to draw resources that would feed states who contribute little or nothing to the allocation table. Another road-block is the Land Use Act which vests all lands in the control of government.
Therefore, all the debates and horse-trading that characterised the last days of the conference are tilted in favour of a status quo that compensates indolence, laziness and greed, instead of long-suffering, productivity, environmental degradation and infrastructural deficit.
How else can one explain the stiff-neck opposition to review of the derivation formula from 13 per cent to 18 per cent? For how long shall the oil-bearing states and communities be made to bear the brunt of oil and gas exploitation and production, sacrifice their once arable lands and lose their traditional occupations of fishing and farming, and yet, depend on a paltry 13 per cent for environmental remediation and pollution control.
These were part of the fears minorities expressed since the amalgamation of the Northern and Southern Protectorates by Lord Fredrick Luggard in 1914. It was for the same concerns that the colonial powers convoked conference after conference, and issued report after report to assure minorities of their protection and economic survival.
More than 100 years after, the same fears that informed their reluctance to be part of Nigeria still remain unaddressed, with their economic rights daily violated with impunity by others, simply depending on numbers.
Where good conscience, equity, justice and fair-play have roots, the Federal Government should concern its-self with efforts geared towards regular remediation of the environment as a means of restoring the people’s traditional means of livelihood-fishing and farming.
Another is to encourage aggressive agricultural pursuits, since it is now almost certain that oil and gas have expiry dates. And not too far way. This means, the people’s capacity to build alternatives must be enhanced through technology-driven education, provision of standard infrastructure like good roads, water and electricity to drive manufacturing and industrial concerns.
All these and more, including basic healthcare, education and economic empowerment cannot be achieved with a paltry 13 per cent derivation. This is a constant source of frustration not only among the affected states and their political elite but indeed, the youth of the affected areas.
Unfortunately, it was that same frustration that led to the Niger Delta militancy resulting in a drastic drop in national earnings from crude oil production. During the insurgency, the militant youth disrupted production of oil in several flash-points that almost grounded the federation.
It was to check that steady drift into economic precipice that the Umaru Musa Yar’Adua presidency pronounced the amnesty package. And with that, Nigeria’s earnings from oil improved, and today accounts for more than 70 per cent of national revenue.
What is wrong with one who contributes over 70 per cent revenue requesting to enjoy only 18 per cent? Whose interest is it should the Niger Delta insurgency resume on account of the open injustice some Northern delegates seek to pursue.
On the last count, some Northern delegates at the conference even insisted on the appropriation of 5 per cent as reward for the destruction unleashed on the North East region by the terrorist group Boko Haram. To them, if Niger Delta militants must enjoy amnesty, the Northern region must be compensated in some way, even if the Boko Haram has severally refused to heed the call to down arms and embrace dialogue.
Unfortunately, such delegates still tie their likely support for improved derivation formula to the appropriation of 5 per cent of national earnings to rebuild the North East and other zones in the North. This is without consideration of the fact that the affected areas bring little or nothing to the federation revenue allocation table, except pick monthly hand-outs. If the Boko-Haram chooses to reign supreme on account of the people’s loud silence, should other zones be made to pay?
The just struggle of the oil-bearing Niger Delta which systemic denial resulted in militancy, is quite unlike the Boko Haram terrorist siege, and should never be so equated. One is an economic hub seeking its due, while the other is a beggar having a choice.
As the conference resumes therefore, commonsense and good conscience must prevail among the delegates, and without further bickering, endorse the 18 per cent derivation recommended since the last days of the Olusegun Obasanjo Presidency, but truncated by that National Conference’s third term agenda.
If 18 per cent was okay in 2006, shouldn’t it be reviewed upwards eight years on? Should it be subjected to such bitter debate capable of disrupting the conference?
The federating states of Nigeria must see the urgency to diversify and be productive. They must pursue economic independence to complement their political relevance. The days are gone when one state will not only depend on the resources of the other but will even dictate how such states’ resources should be administered.
In a true federation, states are the producing units and control their various resources. They merely pay taxes and contribute towards common needs like national security, currency and maintaining the national army, among other basic needs.
My Agony is that a lot of premium is placed on numbers and not quality of contribution to the commonwealth, which is why beggars not merely have choices, they decide what others must get.

Soye Wilson Jambo

Justice Kutigi