Renowned lawyer and former President of the Nigerian Bar Association, Dr. Olisa Agbakoba, SAN, has emphasized the need for Nigeria to devolve powers to all three governments to promote efficiency and development.
According to Dr. Agbakoba, Nigeria’s over-centralization is a major obstacle to national development. “Everything is decided in Abuja to the great detriment of National development,” he noted.
Dr. Agbakoba cited the Tax Reform bill as an example of how overcentralization can hinder progress. While acknowledging that the bill is good for revenue generation, he pointed out that the distribution formula has sparked opposition, particularly from Northern Nigeria.
“The North may have a reasonably arguable case,” Dr. Agbakoba said. “We have always distributed revenue with clear principles. So, the North asks why the revenue sharing formula in the proposed Tax Reform bill is not the same as that for sharing oil revenue?”
To address this issue, Dr. Agbakoba advocated for the devolution of revenue collection to the states. “The North, for example, has the capacity to generate massive revenue from mechanization of Agriculture, but it has not, as there are no strong incentives.”
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Dr. Agbakoba emphasized that the redistribution of power across the three levels of government is crucial for Nigeria’s development. “My honest opinion is that it is more than past time to devolve political and economic power from Federal to state and also from State to local government.”
He also stressed that consumption tax should go to the states where the revenue is generated. However, Dr. Agbakoba acknowledged that the North has raised concerns about changing the system, which needs careful review.
Dr. Agbakoba questioned the Federal government’s control over matters such as marriage, drivers’ licenses, and basic primary and secondary education. “When one looks at the 98 items of power, it is plain that we, as a matter of first principles, need to distribute power more evenly and effectively and efficiently across the three arms of Government.”
He added that the most pressing matter in Nigeria is governance, relating to the redistribution of power across the three levels of government. “In this way, Revenue Sharing will switch to Revenue generation for development.”