Editorial
States’ Viability Index: Matters Arising
Since May 27, 1967 when regions paved way for states in the evolution of Nigeria’s political history, following military intervention, the second tier of government has remained a dominant feature in governance and public administration in the past 52 years of our nationhood. From 12 states in 1967 to 36 in 1998, the issue of state creation, a brain-child of the military has continued to dominate national discourse, and may remain so except for a serious re-structuring of the country.
Up till the administration of President Goodluck Jonathan, some ethnic nationalities and federating units still feel marginalized in the Nigerian project as evident during the defunct National Constitutional Conference where persons from certain parts of the country virtually staged walkouts in protest while demanding for new states.
While the clamour for states continues, though the agitation has dropped in the past four years of President Muhammadu Buhari’s administration, advocates for states perhaps have resolved to adopt the waiting game while strategising on the next line of action.
In what appears to be a twist in states creation and their viability, a recent report entitled: Annual States Viability Index (ASVI) showed that 17 out of 36 States in Nigeria are insolvent, unviable in 2018, as their Internally Generated Revenue (IGR) was far below 10 per cent of their receipts from the Federation Account Allocation in the year under review.
By implication, more than half of the federating states will be bankrupt, if revenue from the central fund dwindles at any time or period as the economy of such unviable states cannot sustain them.
A report released by the National Bureau of Statistics (NBS) revealed that only Lagos and Rivers States can stay afloat if federally-shared revenue were to cease, in case of unforeseen circumstances. This scenario, indeed, portends grave, clear and present danger in the socio-political and economic well-being of the federating states.
Whereas the simple option may be to merge some states to make them viable as the way forward, The Tide thinks that such path may not be readily achievable in the present political reality of the country.
As uncomfortable as that reality may look, the way forward is for the states to diversify their economy and explore ways and means of boosting their revenue base through Internally Generated Revenue (IGR). The truth is that the financial obligations of States keep increasing in geometrical proportion while their revenue generation profile remains virtually static. Infact, in some cases, their revenue dwindles year in, year out. The right path to follow is to explore and exploit the natural and human endowments within their domains.
It is unbelievable and indeed, unacceptable that going by the NBS report, States like Kebbi, Taraba, Adamawa, Bornu, Ekiti, Nasarawa, Katsina, Ebonyi and Gombe oscillate between N4 billion and N6 billion monthly as their IGR whereas their financial obligations range between N15 billion and N25 billion per month.
It is, therefore, advisable and imperative that states must overhaul their sources of IGR through Pay-As-You Earn (PAYE) Direct Tax Assessment, road taxes, and other revenue generating Ministries, Departments and Agencies (MDAs) to remain afloat, especially in this era of the new National Minimum Wage regime.
Any state worth the name should be able to raise its revenue profile and stop lamenting its poor revenue base. While we subscribe to an urgent review of the national revenue sharing formula in favour of states and local government councils, it is our candid opinion that the second and third tiers of government are not just doing enough to shore up their IGR as the current reality demands.
The Tide is of the view that the states must learn to depend less on the central government or go cap in hand begging for internal or external loan facilities to run their affairs. The era of insolvency and bankruptcy should be over for good.
The unviable states should discover the winning formula in IGR generation as evidenced in Lagos, Rivers and probably Delta States. They should not just exist in paying salaries of civil servants and other political office holders who merely constitute an infinitesimal percentage of their citizenry.
Other basic amenities such as potable water, basic education, affordable health services, good roads, electricity, security and decent housing should as well be given due priority as dividends of democracy to the electorate who gave the public office holders at the state level their mandate in trust.
In all, no state in Nigeria should be bankrupt.
Editorial
Checkmating ‘One-Chance’ Menaces In PH
Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
Editorial
Making Rivers’ 2026 Budget Count
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