By Victor Adeoti
Prof. Olumide Ekanade of Redeemer’s University, Ede, Osun, has called for urgent reform of Nigeria’s fiscal federalism to empower federating units and geo-political zones to generate their own resources and drive economic growth.
Ekanade, a Professor of Economic and Social History, made the call while delivering the university’s 21st inaugural lecture in Ede.
The lecture titled “From Fiscal Federalism to Feeding Bottle Federalism: The Historical Dialectics of Nigeria’s Federal Finance and Its Accoutrements” examined what he described as the over-centralisation of fiscal powers in the Federal Government.
Ekanade stressed the need to prioritise productivity and wealth creation over revenue sharing.
According to him, granting relative autonomy and adequate tax powers to the geo-political zones will promote competition, innovation, diversification and economic efficiency.
“The most efficient government is that whose power to tax is equal to its duty to spend,” he said.
He explained that under such an arrangement, the zones would generate more funds and remit royalties to the Federal Government, thereby entrenching fiscal responsibility and encouraging sub-national units to think outside the box.
Ekanade noted that the current constitutional framework gives the Federal Government excessive control while limiting federating units’ capacity for revenue generation and service delivery.
He recommended pruning the Exclusive Legislative List to allow states and local governments assume greater responsibility for social services, infrastructure and taxation.
The don also advocated restructuring Nigeria along the six geo-political zones, citing shared historical, cultural and natural resource ties.
“If adopted, the zones will fund the Federal Government, not the other way round, as is presently the case.
“The Federal Government should focus on foreign policy, defence, security, currency, and import and export duties,” he said.
On regional equity, he called for an increase in Niger Delta derivation from 13 per cent to 50 per cent and the removal of offshore/onshore distinctions to promote fairness and self-reliance.
Ekanade further advised against the creation of more states, urging instead sustained development efforts to improve citizens’ material well-being through infrastructure and equitable access to socio-economic opportunities. (NAN)(www.nannews.ng)
Edited by Tayo Ikujuni
