Nigeria: Restructure or reconfigure (4), By Afe Babalola


UNDER a truly federalist state, fiscal autonomy and responsibility is granted to subnational governments, with state and local governments having adequate resources to perform their functions autonomously, such that no tier is subservient to the other. In Canada, for example, oil and gas resources are owned and controlled by the provinces.

Section 109 of Canada’s Constitution Act 1867 explicitly vests ownership rights to all lands, mines, minerals and royalties for oil and gas resources to the provinces in which they are derived. The oil-rich province of Alberta, for example, retains its oil wealth and pays a predetermined amount of contribution to the federal government. 

This is in far contrast to the current situation in Nigeria where the Federal Government exercises ownership rights and control over oil and gas resources found in different states, and in the reverse pays allocation to oil and gas-owning states. This warped model of federalism serves as disincentives…

Source: Vanguard Newspaper