Restructuring: Why States Should Stop Relying On FG, Generate Funds On Their Own – Kaduna Reps Member
*Insists every state in Nigeria has potentials to generate own revenue, thrive independently
By JACOB ONJEWU DICKSON
Member representing Zango Kataf/Jaba Constituency in the House of Representatives from Kaduna State, Rt Honourable Amos Gwamna Magaji is backing regional or state governments in Nigeria, generating their own funds instead of depending on federal allocations.
In an exclusive interview with our correspondent, he hinged his argument on several key points.
Pointing out the historical context and regional autonomy, he said that at independence in 1960, Nigeria operated a regional system with the Northern, Eastern, and Western regions, each led by a premier.
“The constitution provided these regions with substantial control over their resources.
“This system allowed regions to develop based on their strengths and resources, fostering competition and regional growth,” he said.
On resources potentials, he said that Nigeria is endowed with abundant resources, including water, minerals, and a significant pool of human capital.
” Every State in Nigeria has the potential to generate its own revenue and thrive independently.
“Despite this wealth of resources, many states have become overly reliant on federal allocations, which has stifled initiative and innovation at the state level,” he decried.
On dependency and complacency, he explained that the reliance on federal allocations has led to complacency among state governments.
“Many state leaders do not prioritize developing independent revenue streams or crafting robust economic programs.
“This dependency reduces the incentive for states to harness their resources effectively or to develop tailored economic policies that could drive local growth and development,” he said.
He was however, optimistic of potentials for regional growth and healthy competition that will boost the country’s economy.
*If states were required to generate their own funds, it would likely stimulate competition and innovation. Regions would be motivated to leverage their unique resources and capabilities to boost their economies.
“This could lead to significant regional development, as states strive to outperform each other, creating a more dynamic and diversified national economy,” he assured.
Citing examples of successful regional models, he recalled that the early post-independence era in Nigeria, saw significant achievements in regional development.
“For instance, the western region under Premier Obafemi Awolowo made strides in education and infrastructure development, becoming a model of regional success.
“Other countries with federal systems, such as the United States, have demonstrated how state autonomy in financial matters can lead to diverse and robust economic landscapes,” he pointed out.
He was optimistic that being creative in funds generation would enable states to generate their own income and the strain on federal resources would be reduced.
“The federal government could then focus more on national issues such as security, foreign policy, and major infrastructure projects.
“This would also ensure a more equitable distribution of national resources, as states that generate more would not have to subsidize those that rely heavily on federal allocations,” he explained.
Honourable Magaji listed some benefits of state-level fiscal autonomy to include, enhanced accountability, localized economic policies, diversification of the country’s economy, amongst others.
“State governments would be more accountable to their citizens if they rely on locally generated revenues. This could lead to more transparent and efficient governance.
“States can tailor economic policies to fit their unique contexts, leading to more effective and sustainable development strategies.
“Encouraging states to develop their own revenue sources can lead to economic diversification, reducing the country’s overreliance on oil revenues.
“A greater focus on internal revenue generation can foster a more entrepreneurial culture within states, encouraging innovation and local business growth,” he explained.
According to him, some challenges and considerations that are important are, ensuring that states develop the capacity to effectively manage and harness their resources.
“This includes investing in human capital and institutional frameworks.
“Measures must be taken to ensure that less resource-rich states are not left behind, perhaps through inter-state collaborations and federal support for critical projects,” he stressed.
He noted that however, reforms may be necessary to clearly define the powers and responsibilities of states regarding resource management and revenue generation.
“In conclusion, supporting regional or state governments in Nigeria to generate their own funds can drive sustainable development, foster regional competition, and reduce dependency on federal allocations. By doing so, Nigeria can fully leverage its abundant resources and human capital, leading to a more prosperous and dynamic nation,” he assured.
