Teaching Comparative Government and Politics

Thursday, June 05, 2008

Civil society in Nigeria

A business group has proposed a formula for sharing state revenues that it hopes will reduce corruption and end eternal arguments about who gets what.

If you can get through all the abbreviations, the proposal is basically that the national government and the states split revenues evenly. That the states split their share evenly with local governments, and so on down the line. There is also a proposal here to resolve the issue of adequate sharing with the south-south region that produces oil and suffers from environmental degradation. The NACCIMA (see below) also suggests that lower levels of government check on the sharing process of the bodies "above" them. It will all depend upon greater transparency than exists now.

The recommendations extend beyond revenue sharing. Details in the article.

This was written by Omoh Gabriel, Business Editor for Vanguard (Lagos).



I'll be interested in seeing how other groups (especially the powerful figures in the national government) respond.

Organised Private Sector Backs 50 Percent Resource Control

"THE Organised Private Sector (OPS) has thrown its weight behind resource control, calling for a new revenue allocation formula that will give the federal and state governments 50 per cent share each of the federation account.

"This is one of the several submissions made by The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) to the Federal Government to mark President Umaru Yar' Adua's one year in office.

"The sharing of the proceeds from resources between the federal, state and local governments should be 50:50.

"This will reduce the over dependence of states on Federal Government. The state governments should also share with relevant local governments on 50:50 basis, and local governments with wards, wards with communities, communities with families and families with their individual stakeholders...

"Apart from crude oil and gas, all minerals, hydro-electric power stations, sea ports, airports, coal power stations, sales or consumption tax like Value Added Tax (VAT) should all be included as resources that should be controlled under derivation principle...

"For resources derived from the Niger Delta Region, 20 per cent should be given to the Niger Delta Region before the 50:50 formula is used to divide between Federal Government and state and local governments including states and local governments in the Niger Delta Region.

"This 20 per cent to Niger Delta should begin in 2009, rising by 5 per cent per year from 2010 until 50 per cent is achieved...

"Federal Governments and state governments from other areas will not receive less than they currently get because the additional volume of crude oil and gas that will now be produced (when militancy/restiveness is reduced and sustainable peace is maintained in the Niger Delta) will more than compensate for what will be due to the Niger Delta..."




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