ABSTRACT
This research study analyzes the
issues of fiscal federalism and resources control using the case of oil
producing Niger Delta Region. This argues that the practice of federalism in Nigeria Nigeria.
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF
THE STUDY
The nature and
condition of the financial relations in any federal system of government is
crucial to the survival of such system. This, in most, if not all federal
countries, one of the most constant sources of wrangles centres on the problem
of securing adequate financial resources. Resources control is a very vital
aspect of Fiscal federalism the very nature of Nigeria
The
issue of resources control has gained currency owing mainly to the large scale
ignoring of oil producing areas on which the wealth of the country is dependent
in the development efforts. Clamoring for resource control is a quest to true
and functional federalism or classic federalism. Perhaps by omission or
commission, the underlining principle behind resources control is
misrepresented and misunderstood in some quarters as being only in the interest
of the Niger Delta people.
The centre
stage that the resource control struggle now occupies in the national discourse
is of deserving compensation. What they have not realized is that resource
control or classic federalism is indeed a veritable path way to the nation’s
rapid socio-economic development because it is a wake up call for all Nigerians
to harness the opportunities in their immediate environment for our collective
greatness. This assertion is buttressed by the fact that it is only through
fiscal federalism of which resource control is an adjunct that we can upgrade
our economic base to a multi-product as opposed to its current mono-product
status.
The fact that
there has been a lot of politicization in the scheme of things cannot be over
emphasized. It is from this that the clamour for self determination by several
ethnic groups in Nigeria recently assumed unprecedented dimension when the
south-south governments called for control of the natural resources found in their
geo-political region. Before then, the Ijaw nation under Adaka Boro and
specifically the Ogbonis under the Ken Saro-Wiwa had at various times
undertaken progressive campaigns to halt the exploitation and plundering of
petroleum resources of the Niger Delta areas by successive governments in Nigeria
The aggressive
campaigns by the then president of the Movement for Survival of Ogboni people
(mosop). The late Ken Saro-Wiwa to halt the aforementioned problem most
especially the problem associated with the irrational exploration of crude oil
in the Niger Delta area earned Ken-Saro-Wiwa’s death as punishment for his
Mosop’s leadership for resource control. It is adequate to say that the
agitation for resource control by the south-south state is aimed at appropriating
resource located within their region. The advocates of resource control argued
from two factors, firstly, the underdevelopment of the Niger Delta area by
successive military government in spite of the bulk of wealth gotten from the
Niger Delta area to sustaining the whole country come from the area. It is
therefore, the argument of resources control advocates that despite the
irrational exploitation of crude oil in the Niger Delta area. There is nothing
to show for it in terms of development, whether infrastructural or human.
Secondly, the
proponents of resource control posited that the clamour to control resource by
the states is simply an attempt to entrench a classic federal system of
government in Nigerian politics. Although the control of resource agitated by
some states precisely the southern states does not go down well with some
eminent Nigerians hence the contesting states are not celebrating the supreme
court judgment on the suit field by Bola Ige the late slain Minister of Justice
and Federal Attorney General on the Interpretation of (section 162, subsection
1 of the 1999 constitution) that touches on the distribution of the country
revenue.
The issue of
resource control and derivation formular is not a new phenomenon in Nigeria Nigeria
When military
handed over political power to elected civilian in May 1999, the problem of
resources allocation sharing was still not resolve. The governments of Niger
Delta area stated making moves for resources control, a review of the
derivation formula, a true federalism and a national conference: These
agitation were later joined by the Nineteen (19) governors of the south.
It is from the
very perspective that they project will examine the impact of resources control
by the Niger Delta region on Nigeria fiscal federalism and also take a critical
look into all problem in demands with the aim of identity and proffer solutions
for the sake of co-existence and for the unitary of the nation.
1.2 STATEMENT OF RESEARCH PROBLEM
There is no
doubt that there is retardation of the progress of the Niger Delta Region and
Pauperization of its peoples. These situation have led to the wide spread
poverty with over 75% of the population on or below, the poverty line, poor
sanitation and waste disposal and pollution contributing to illness, absence of
electricity and pipe borne water supply and most especially, severe
environmental degradation which has an adverse communities impact from the
exploration and exploitation of oil and gas in the region as these constitute
part of the statement of problem.
There
was also deforestation and shortage of farmland which has resulted in high
level of unemployment as a result of oil exploration and the failure of the
federal government to listen to the clamoring and compromise with the struggle
for resource control by the people of Niger Delta Region as a quest for a true
and functional federalism with principle inherent in the spirit and letter of
Fiscal federalism and also the implication for the resources control shall all
cover our statement of problems.
The Nigeria
Lastly, the
influence of the multinational corporations and the compradors on the
exploration of oil and gas in the Niger Delta Region is also one of the
problems of the research study. As some Greeks are praying the water should not
consume them as in the time of Biblical Noah or the Tsunami experience, the oil
companies are busy spending protective barriers of their oil rigs and
installation against ocean encroachment leaving their host communities to
perish.
1.3 Objectives of Study
The objectives
of study are as follows:
1.
To
understand factors responsible for the agitation by some states to control
their resources.
2.
To
find out the impacts of the agitation by some states to control their
resources.
3.
To
find out whether resources control can halt to or rather minimize the recurring
problem associated with Nigeria
4.
To
find out whether resource control would either promotes centripetal or
centrifugal forces in the Nigeria
5.
To
find out whether resources control would bring development to the federating
units.
1.4
Significance of the Study
1.
The principal and dominance significance of this
research study is that of the exposure of the members of the public to the
controversial issues associated with the problem of Fiscal federalism and
resource control. This is expected to raise consciousness and awareness of the
members of the public.
2.
More importantly, the project work will not only
look at the conflictual relationship that existed between federal and state
governments (Niger Delta states) but also to find or rather proffer solutions
that will in turn enhance cordial relationship for an enduring federalism.
3.
The study is desirable because of the overriding
need to understand the inherent difficulties in the operation of federalism in Nigeria
4.
It is also hope that the study will in no doubt
educate the public and various government authorities in their rights
economically and legally on the issues of fiscal federalism and resource
control.
5.
Since the ends of any social science research is
to proffer solution to a given social, economic and political problems, the
study therefore is very significantly pertinent in proffering solutions to the
problems associated or inherent in fiscal federalism and the struggle for
resource control by the Niger Delta region.
1.6
Limitation of the Study
The
limitations are built around its limitations, they are those factors inherent
in the research situation that might affect the results which the investigators
must recognize and acknowledge for the study. It shall also include the
examination of horizontal developments and antecedents of the Nigeria
The
major problem is that the information required is not easily come by as a
result of the official bureaucracy involved in collecting relevant government
materials.
1.6
Definition of Terms
Before going
into more rigorous and systematic aspect of this work, it is necessary and
imperative to begin by given operational definitions of certain terms or
concepts whose clarifications are basic to the understanding of the whole work.
The terms that are commonly used in this study are operationally defined as
follows:
a)
Federalism: This is the
method of dividing powers so that the central and regional governments are each
within its sphere coordinated are independents. It can also be seen as a
constitutional arrangement for the distribution of government authority by area
in other to maximize freedom of expression of cultural socio economic and
political attributes.
b)
Resource
Control:
This involves three major component of power, the right of a community or state
to raise fund, by way of tax or person’s services and material within its
territory. The exclusive rights to the ownership and control of resources both
natural are created within its territory.
The rights of
custom duties or destined for its territory excise duties on goods manufactured
in its territory. It can also be conceptualized as a strict adherence to the
principle of deprivation.
c)
Fiscal
Federalism: Fiscal
federalism can be described as financial governmental relations among the
different tiers of government in a federation. It is a consequences of
federalism that is concerned with the relationship among the various levels of
government with respect to the allocation of national review (National cake)
and the assignment of functions and tax powers to the constituent unit in a
federation.
d)
Derivation: Derivation
can be defined as revenues allocation principle by which certain amount of
finance is allocated to the component units of the federation based on the
revenue generated from the mineral resources of the area. It is seen as having
the inherent ability, due to its relationship to taxes and compensatory
features of overcoming the felling of alienation by members of any unit.
e)
Niger Delta Region: Niger
There are
differences between the south-south zone and the Niger-Delta region. While the
south-south zone is the geopolitical zone comprising of six (6) states which
have vested interest bordering more on the political. The Niger-Delta comprises
of nine (9) states. These nine (9) states which have come together are united
in the struggle or rather are united in the fight for the economic emancipation
of the region.
The nine (9)
states of the Niger Delta Region are: Abia, Akwa-Ibom, Bayelsa, Cross-Rivers, Delta,
Edo , Imo, Ondo and Rivers states.
REFERENCES
Anyanwu, J.C.
(1995). Nigeria Fiscal federalism: Concepts issues are sources of revenue for
federal, state and local governments organized by NCEMA, Ibadan
Kayode, M.O
(1993) “The National questions are Revenues Allocation: An Article firm of some
of the problems are issues” National question and Economic Development Nigeria.
Selectal Paper of the 1993 annual Conference of Nigeria economy.
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