“RETHINKING OUR FUTURE: THE NEED FOR TRUE FEDERALISM AND ECONOMIC RENAISSANCE”
Being text of the lecture delivered by the Governor of Bayelsa State, His Excellency Senator Douye Diri, on the occasion of the 64th Founders’ Day of the University of Nigeria, Nsukka, on Wednesday, October 9, 2024 at the Princess Alexandra Auditorium and Unity Hall, Nsukka Campus, Enugu State.
PROTOCOLS
1. Distinguished scholars, members of the UNN academic community, ladies and gentlemen. It is indeed my profound honour to be a guest lecturer at this 64th Founders’ Day celebration of the University of Nigeria in Nsukka.
2. On behalf of the Government and People of Bayelsa State, I thank the leadership, faculties and students of this great institution for your kind invitation.
3. This bespoke event provides a platform for us to interrogate a subject that has been on the front burner of our national discourse.
4. I have elected to speak on the topic, “Rethinking Our Future: The Need For True Federalism and Economic Renaissance.” Federalism is a very touchy subject that concerns our corporate existence as a country. Referring to true federalism in the topic, as against federalism, is a deliberate distinction. It highlights the significant differences between the global principles of federalism and the actual practice of federalism in Nigeria.
5. The fact that "true federalism" has become a lexicon that reverberates across our socio-political landscape underscores the defective nature of the governance structure that we operate in Nigeria. In the context of Nigeria, the term "true federalism" has become a rallying cry for those seeking autonomy, resource control, addressing issues of marginalization and good governance. It is about moving away from a system that can properly be described as "unitary federalism" or a "federation without federalism."
6. It is a reoccurring decimal that grimly reveals cracks in our relationship as a people. On October 1, 1964, one of our independence heroes and, of course, the founder of this great institution, Dr. Nnamdi Azikiwe, asked: “Is Nigeria, four years after independence and a year after becoming a republic, still a group of tribes or is it a nation?" Six decades later, we are still grappling with the answer.
7. We should be concerned that the misgivings of ethnic nationalities and minority interests about the inequities and disequilibrium that defined the political paradigm at the time still persist.
8. For the avoidance of doubt, I wholeheartedly support the Nigerian state and its continuous unity and existence. However, I recognise that, like any nation, we strive for a more perfect union. A union where diversity is celebrated, equity ensured and opportunities are accessible to all.
9. Our gathering today is therefore not merely another day for lectures or political rhetoric. As I look on the faces of each of you, I see not only the potential of a generation, but the weight of dreams deferred. The weight of a system that has, for too long, failed to harness the energy and creativity of old, and puts at risk the promise of the very future that sits before me now.
10. As a student, I too dreamt. I dreamt of a Nigeria where opportunity was not a rare gift but a birthright; where young men and women could aspire, innovate, and thrive, without being held back by systemic failures. For our dreams to take flight, we must confront a harsh reality; Nigeria, as it stands today, cannot deliver the future the vast majority of our people desire and deserve.
11. I am driven to speak out on these crucial matters because Nigeria has reached a pivotal point, a crossroads that demands wise decision-making to determine the nation's destiny and secure a prosperous future. We must engage in such frank conversations about how to create a more perfect union, one that embraces our diversity while pursuing common goals. It is through dialogue and collaboration that we will pave the way for a brighter future for all Nigerians. As former United States President John F. Kennedy wisely stated in his Inaugural Address in Washington, D.C. on January 20, 1961, “Let us never negotiate out of fear, but let us never fear to negotiate.”
12. Federations typically result from complex historical, political and cultural developments. One of the earliest examples is the United States, precisely during the American Revolutionary War. The necessity for collaboration and unity in defence and trade among 13 separate colonies led to the formation of federated states. They did so entirely of their own volition by negotiating the union.
13. In sharp contrast, the colonial authorities did not give federating units the choice to remain sovereign or negotiate their membership of Nigeria. Our union was designed primarily to serve British administrative and economic interests, forcing together vastly different ethnic, cultural, and religious groups. Thesituation was further complicated by successive military incursions that washed off almost all appearance of a federal state in order to exercise absolute control. This succeeded in laying the groundwork for the tensions that have continued to plague Nigeria's unity.
14. Consequently, we must rethink our future and build a political culture where the promise of federalism is not a mere illusion of unity, but a powerful catalyst that drives our passion for success and unlocks untapped potential.
15. We cannot pretend that our economic circumstance at this point is friendly. I, therefore, invite us to rethink our future, and ensure our economic renaissance.
16. I am reminded, in this moment, of a great son of the Niger Delta and Ijaw nation, Isaac Jasper Adaka Boro, who pioneered minority rights activism in the country and whose revolutionary journey began in this very university. On record, Boro was President, Student Union Government in this great institution during the 1964/65 session. It was here that Boro was instilled the ideals of federalism. He believed in a Nigeria where no people, state or tribe would be subjugated or denied its rightful share of the nation's wealth.
17. Like Boro, I, too, have spent my life advocating for the rights of my people, the Ijaw people of the Niger Delta. As a founding Executive Council member of the Ijaw National Congress (INC), I have championed the cause of resource control and geo-political autonomy, which are core principles of federalism.
18. I have witnessed how the centralisation of power in Abuja has left our oil-producing communities impoverished, despite being the backbone of Nigeria’s economy. I have seen firsthand how the current system has deprived my people of their God-given resources and stifled the development of our land.
19. Perhaps, at this point, it will be instructive to consider the paradox and injustice surrounding our country’s Land Use Act of 1978. Section 1 says: “Subject to the provisions of this Act, all land comprised in the territory of each State in the Federation are hereby vested in the Governor of that State and such land shall be held in trust and administered for the use and common benefit of all Nigerians in accordance with the provisions of this Act.”
On the other hand, Section 12 (1) of the same Act states: “It shall be lawful for the Governor to grant a licence to any person to enter upon any land which is not the subject of a statutory right of occupancy or of a mining lease, mining right or exclusive prospecting licence granted under the Minerals Act or any other enactment, and remove or extract therefrom any stone, gravel, clay, sand or other similar substance (not being a mineral within the meaning assigned to that term in the Mineral Act) that may be required for building or for the manufacture of building materials.” Effectively, taking back with one hand what was given with the other.
20. What meaningful and sustainable prosperity can we achieve when states are denied control over their resources? Who better understands the needs of our people than the state governors, who reside with them and receive regular reports on their challenges? This is not merely about economic development; it is also about social justice. When states thrive, Nigeria will thrive.
21. We are all aware of the ongoing conversation around the issue of autonomy of Local Governments. My concern over this sensitive subject is beyond the question of autonomy and more about the rationale for their creation. The current system, which allocates funds based on the number of local governments, puts some states, especially Bayelsa, with just eight, at a disadvantage. This disparity arises because states with more local governments receive a larger chunk of resources, regardless of their specific requirements or financial strength.
22. Since the Constitution exclusively recognises states and the federal government as federating units, the federal government's creation of local governments constitutes an aberration, undermining the principles of federalism and state autonomy. The Constitution's clear delineation of federal and state powers renders the federal government's creation of local governments incongruous, as local governance falls within the purview of state authority. My take to addressing this issue is enforcing states’ autonomy to create local government areas tailored to their unique needs and financial capacity to fund them.
23. Another contentious issue is the 13% derivation formula for oil-producing states, which is obviously for us 87% deprivation. We firmly believe that God, who blessed our lands with oil reserves, did not intend for our people to suffer environmental degradation without commensurate benefits.
24. The 13% derivation falls short of justice and equity, considering: Environmental devastation, Health hazards, Economic disruption, and Cultural heritage destruction that the Niger Delta region suffers.
25. But this is not just the story of the Niger Delta. This is the story of all federating units in Nigeria - each shackled by a system that hinders their growth and potential.
WHAT THEN IS FEDERALISM?
26. As a student of political science, I am keen to engage eminent scholars on this critical subject. However, the concept of federalism has transcended its scholarly confines and as such it is not just an academic discourse, but a political and everyday conversation in Nigeria.
27. K.C. Wheare who is known as “dean” of modern comparative federalism research in his 1946 book, “Federal Government,” defined federalism or federal government as: “the method of dividing power so that general and regional governments are each within a sphere co-ordinate and independent”. In our context, the ‘general’ is equivalent to the federal government while the ‘regional’ applies to the states.
28. A report in The Guardian of December 1, 2023, published from a lecture titled, “If federalism is the answer, what is the question,”another authority in Political Science, Eghosa Osaghae, a Professor of Comparative Politics and incumbent Director-General at the Nigerian Institute of International Affairs, describes federalism as “a system of government that combines regional autonomy, resource control, and participatory governance, allowing geo-political zones to manage their resources and develop according to the unique needs within the framework of a unified polity.” He submitted that federalism provides for the management of diversity and the promotion of inclusivity.
29. By this definition, I understand that to fully realise its objectives, the federal structure empowers its constituent units to exercise significant control over their human, economic and natural resources. This autonomy enables the formulation and implementation of policies specifically tailored to the unique characteristics and developmental needs of each federating unit, hence they are driven to leverage their comparative advantages. This competitive balance not only maximises local potential but also strengthens a broader national fabric.
CONSIDERATIONS:
30. Notwithstanding our rich cultures, abundant resources, and distinctive state/regional strengths, our country has long wrestled with the bountiful promise of federalism, regrettably, without much success. For decades, the centralisation of power has strangled the unique potential that lies within each geo-political zone/state, hindering a true economic renaissance.
31. I must emphasize at this point that no state in Nigeria is disadvantaged in terms of natural or human resource. The bane has always been a faulty system that prioritises federal allocation to states, which has discouraged innovations, growth and development.
32. Is the current structure of dependence on the centre for federal allocation healthy? Every month, we go cap-in-hand to Abuja begging for allocation in the name of Federation Account Allocation Committee (FAAC). My question is, is this healthy? Let us not be held hostage by federal allocations. They may fill our coffers but they also drain our creativity, leaving us with a deficit of innovative ideas that impede our forward momentum.
33. Fiscal federalism, a missing component in our current structure, offers federating units the authority to flex their economic muscles thus able to express their cultural and political identities within a national framework. This would ease the tensions that arise from the feeling of marginalisation, as each state would have the autonomy to address its own challenges without undue interference from the center.
34. Therefore, federalism in its ideal form is the key that unlocks the door to a prosperous, competitive, and self-sustaining Nigeria, where each federating state harnesses its strengths and comparative advantages to spur economic renaissance.
35. The centre need not fear losing its pivotal strength. It will become more formidable, better focused and concentrate on foreign policy, defence and currency, thereby restoring Nigeria’s pride of place in Africa and the international community. This will become possible when the federating units, the states as it were, are stronger and more productive.
36. Do we settle for stagnation? Or dare to re-imagine our collective destiny; shedding the weight of outdated constraints to build a more just, inclusive, and vibrant nation worthy of our highest potential?
37. For instance, the clamour for state policing has been a contentious issue for years, particularly in the face of unprecedented security challenges in the country. In an authentic federal structure, federating units would address their peculiar security situations inwardly with support from the centre where necessary.
38. As the chief security officer of my state, I have only marginal input over the security command and control structure. We are all aware of the humbling response of a police officer to the directive of the Lagos State Governor that he takes instructions only from above. I think these situations need to be addressed.
The kind of security challenges we see today are truly unprecedented and some people still say if states have police they will use it against political opponents. But, even today, it is happening. Anybody with access to our police uses it the other way. Recent developments in Rivers State during the local government election and the Bayelsa situation in Bassambiri community during the 2023 governorship election, where the police was used against the people, are cogent examples. So, for me, we have to think a second time. As Chief Security officer of a state, I have no input in the national security structure. If internal security was unbundled from the centre, I and other governors would be more effective in this role.
39. Notwithstanding the fact that we do not have control of the federal conventional security apparatus, Bayelsa has emerged as one of the safest states in Nigeria. This is because we have created a state security outfit - the Community Safety Corps - that incorporated both the Bayelsa Volunteers and Bayelsa Vigilante; a community-focused approach to law enforcement, empowering and allowing them to engage directly with residents. This has been effective in curbing crime and criminality by monitoring neighborhoods, gathering intelligence and providing immediate responses to incidents in collaboration with the conventional federal security agencies, which we support with logistics.
40. Whereas we have done well, lack of effective control continues to hinder our operations. There is no gainsaying that security is key to economic activities and harnessing the resource in our various states.
ECONOMIC RENAISSANCE
41. As I stressed earlier, no state in Nigeria is deficit in natural resources. In any case, ending Nigeria’s reliance on oil is now inevitable, especially with the recent climate deal from Conference of Parties (COP28) emphasisingthe need to transition away from fossil fuels to cleaner energy.
42. Although crude oil has defined our economic trajectory for decades, we must explore the wealth of other untapped resources that exist in our respective states. Each of Nigeria’s federating units/states possesses unique resource and attributes that can drive economic renaissance in their respective domains. These include but not limited to;
a. Granite, limestone, salt, glass-sand here in the South-Eastern States
b. Gold, uranium, lithium in the Northern States
c. Gold, limestone, granite in the Western States
d. Gemstone, marble, talc in the Middle Belt States
e. Zinc, glass-sand, clay, salt in my own geo-political zone, the South-South States.
43. It is interesting to note that globally, the annual trade volume of gold is approximately 5,000 tons, valued around $300 billion. This is according to the World Gold Council. Gold plays a significant role in various industries: around 50% of global demand comes from jewelry manufacturing, while it is also essential in electronics for its high conductivity and corrosion resistance. Moreover, central banks and nations accumulate gold as a hedge against inflation and currency fluctuations, using it to strengthen their foreign reserves.
44. Let us imagine the transformational economic benefits if states with comparative advantage in gold deposits claim just 10 per cent of the global market. This would translate to $30 billion at today’s rate.
45. Similarly, annual trade volume of uranium is approximately 80 million pounds (valued around 5billion dollars), while approximately 600,000 tons of lithium carbonate equivalent (LCE) is valued around $15billion. This projection is true for other mineral resources available in different states of the federation.
46. Beyond mineral resources, Nigeria is also blessed with arable land to grow several cash, food and industrial crops as well as fruits, fisheries and aquaculture that can drive the economy of various states.
47. The economic renaissance we seek is not a distant dream. Rather, it is within our grasp. It is time to embrace this vision and forge a new path – one where every federating state can stand tall, secure in its ability to generate wealth, create jobs, and contribute meaningfully to the collective prosperity of our nation.
COMPARATIVE ADVANTAGE
48. The South-East states have always been a land of innovation and enterprise, where the resilient spirit of trade and technological ingenuity permeates every fiber of the geo-political zone. This zone could fully exploit its comparative advantage in commerce, trade, and technology.
49. The South-East is already known for producing different goods, including automobiles. Places like Nnewi, fondly called the "Japan of Africa" and Aba have the full potential to become global hubs for manufacturing and technological innovations. A decentralised structure would allow the geo-political zone to make policies that attract international investors, establish functional export zones, and leverage their proximity to the Atlantic Ocean for shipping and trade.
50. In a well-structured federal system, states can form mutually beneficial partnerships, leveraging their unique strengths to boost economic growth. This collaborative approach allows states to capitalize on their comparative advantages, fostering co-dependent relationships that drive prosperity.
51. For instance, Bayelsa could supply gas to power industries in the South-East states, while those states utilise Bayelsa's seaports, creating a win-win situation. This synergy can be replicated across various states, unlocking numerous opportunities for cooperation.
52. In essence, by embracing co-dependent partnerships, states can unlock their full potential, driving growth and prosperity for all. The economic impact of such a shift would be monumental, generating employment, reducing poverty, and placing Nigeria at the forefront of technological advancement in Africa.
A.S.S.U.R.E.D PROSPERITY AGENDA
53. In this awareness, we have taken a proactive approach in Bayelsa State to secure our future by diversifying our economy beyond oil. In this our second term, we have launched the A.S.S.U.R.E.D Prosperity Agenda, which prioritises seven key areas to drive growth and development.
Key Pillars of the A.S.S.U.R.E.D PROSPERITY AGENDA are:
A - Agricultural Revolution and Marine/Blue Economy:
With its vast coastline and access to major waterways, Bayelsa is poised to become a leader in Nigeria's blue economy. We are working to develop our fisheries, aquaculture, and marine industries.
The construction of the three senatorial roads to access the Atlantic Ocean at Koluama, Agge and Twon-Brass is a game-changer for Bayelsa State. These strategic infrastructure projects - federal roads conceived but neglected for over 60 years - will facilitate the seamless movement of goods and services, unlocking the vast potential of our coastal areas and bolstering our blue economy.
This would open up substantial opportunities for export, tourism, and shipping industries, contributing not only to the state's IGR but to Nigeria's economic diversification. By leveraging its waterways, Bayelsa can also enhance transportation and trade routes, making it a gateway for both domestic and international commerce.
S - Sports and Youth Development:
We are engaging our youth and intentionally developing their technical capacity and upgrading our sporting infrastructure. An ultra-modern stadium shall be completed before the end of our second tenure.
S - Security and Peace:
Enhancing security measures, combating crime, and promoting peace and harmony has made Bayelsa one of the most peaceful states in Nigeria and a conducive place for business and leisure.
U - Urban Renewal and Rural Development:
Similarly, we are transforming urban and rural areas with investments in infrastructure, housing, transportation, and water supply.
Infrastructural projects in Bayelsa's mangroves face substantial cost overruns due to the numerous challenges inherent in constructing within this fragile ecosystem. These challenges include unstable soil, high water tables, corrosive environments, remote locations and logistical constraints.
Far from being deterred, we are determined that high cost and difficult terrain will not be an excuse for not developing our state. Indeed, such significant and high-volume cost projects would have been prioritised and completed if they were within the purview of our state.
R - Robust Healthcare Delivery:
To enhance the quality of life of our people, we are investing in modern infrastructure to improve access to quality healthcare services.
E - Energy Generation, Economic Growth and Tourism:
Repositioning the economy for growth and sustainability through power generation, economic diversification, tourism and hospitality, entrepreneurship, and empowerment programmesremains a priority of my administration.
Between 2023 and 2024, Nigeria earned the coveted recognition as one of the highest exporters of natural gas in Africa. Interestingly, Bayelsa State has the highest deposit of natural gas in Nigeria, which places us in a vantage position to be an energy generation powerhouse. With the Electricity Act assented to by Mr. President Bola Ahmed Tinubu, GCFR, which is in tandem with the tenets of federalism, devolving to states the capacity to generate and distribute power, Bayelsa could provide sufficient electricity/power to stimulate industrial revolution, not just for local consumption, but across several states of Nigeria. Instructively, Bayelsa is among the first states that domesticated the law signed by President Tinubu to allow states to generate and distribute electricity.
D - Diversifying Education towards Innovation and Technology:
Our educational sector is being digitised to meet with contemporary standard, creating opportunities for innovation and technology for our youth. There has been a consistent improvement in our performance ratings, at the primary, secondary and tertiary levels by leveraging technology in the delivery of quality education. A good example is BayelsaPRIME (Bayelsa Promoting Reform to Improve & Modernise Education), a technology driven tool used to advance learning experience and supervision. Deliberately, we have moved our secondary education curriculum from just paper impact to skills acquisitions by our students with the establishment of tuition and feeding free Science, Technical and Vocational Colleges across the state. This is a new paradigm in the education system.
54. In an authentic federal set up where Bayelsa State has full control over our resources, we could massively scale-up our operations in the 7-Pillars of our A.S.S.U.R.E.D PROSPERITY AGENDA. That exactly will be a positive gain of the principles of true federalism.
55. Governors of the Niger Delta have frequently been trailed by the query: what have you done with the 13 per cent derivation fund? One may be tempted to ask, what has been done with the 87 per cent deprivation fund. For those familiar with our terrain, you know the cost of constructing roads in Bayelsa is different from that of the North.
56. Building a new federal framework in the country requires a multifaceted approach that empowers each state to reach its full potential. This can be achieved through Devolution of Power, which means states exercising more autonomy to make decisions and take actions that cater to their unique needs. By doing so, states can address local issues more effectively, foster innovation, and promote internal development.
57. Another crucial aspect is Fiscal Autonomy, enabling states to generate and manage their resources as well as make financial decisions that align with their priorities. This includes collecting and allocating revenue, investing in infrastructure, and providing essential services to their citizens.
58. A significant departure from authentic federalism in Nigeria's electoral process is the centralised control over elections. In contrast, most federal jurisdictions empower regional or state electoral bodies to conduct elections within their territories. What I advocate is a significant departure from the past and this also entails our elections. Our elections are highly centralised and today some people are still calling on the federal government to handle local government elections. That is not how it should be.
ELECTORAL PROCESS IN OTHER NATIONS
I. United States:
● State and local election officials manage elections.
● Federal Election Commission (FEC) oversees campaign finance and federal election laws.
● State supreme courts handle most electoral disputes.
II. Germany:
● Federal Election Committee oversees federal elections.
● State election committees manage state and local elections.
● Constitutional Court handles federal electoral disputes.
III. Australia:
• Australian Electoral Commission (AEC) oversees federal elections.
• State and territory electoral commissions manage state and local elections.
• State supreme courts handle electoral disputes, with few cases reaching the High Court.
IV. Canada:
• Elections Canada oversees federal elections.
• Provincial and territorial election management bodies handle provincial and territorial elections.
• Provincial and territorial courts handle electoral disputes.
V. Switzerland:
• Federal Chancellery oversees federal elections.
• Cantonal election authorities manage cantonal and municipal elections.
• Cantonal courts handle electoral disputes.
In the jurisdictions highlighted above:
● Regional electoral bodies have significant autonomy.
● State or provincial courts handle most electoral disputes.
● Federal supreme courts intervene only in exceptional cases.
59. Nigeria can learn from these examples, decentralising electoral management and dispute resolution to strengthen its federal system and promote states autonomy.
Benefits:
● Increased state control and accountability.
● More efficient electoral dispute resolution.
● Enhanced federalism and state autonomy.
● The strong institutions will provide checks and balances to the respective state government.
60. By doing so, we will unlock our comparative potential, unleashing innovation and entrepreneurship. The choice is clear: continue with a centralised system as practiced today or embrace (true) federalism.
61. Let us reflect on the profound words of the British author, C.S. Lewis, from his book titled “Mere Christianity”: “We all want progress. But progress means getting nearer to the place where you want to be. And if you have taken a wrong turning, then to go forward does not get you any nearer. If you are on the wrong road, progress means doing an about-turn and walkíng back to the right road and in that case the man who turns back soonest is the most progressive man… We are on the wrong road. And if that is so, we must go back.”
NIGERIA INDEED MUST GO BACK!
62. I urge us all to embrace this journey towards a new Nigeria, where each state's progress is the nation's progress. Let us build systems that support our collective dreams, leaving petty comparisons behind.
63. In closing, I paraphrase the great Emperor Haile Selassie’s Address to the United Nations General Assembly, delivered 6 October 1963, popularized by Bob Marley in his song: “Until the philosophy that holds one tribe, region or religion superior and another inferior is finally and permanently discre dited and abandoned, there will be no economic renaissance.”
64. We must embrace this truth and recognize that unity and respect for one another are fundamental to our nation's progress. Only then can we foster an environment of peace and collaboration, essential for our collective growth and economic renaissance.
65. Thank you.
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