Press Releases

How To Achieve True Federalism For National Growth - Fashola
…As Lagos hosts South West’s Zonal Public hearing on Constitutional Review

Dec 14, 2009 - Lagos State Governor, Mr Babatunde Fashola (SAN) on Monday called for the adoption of a federal arrangement that enables diversity to thrive, promotes competition as the bedrock and basis for national growth, while demonstrating concern and support for those who are not endowed with competitive abilities by supporting their abilities rather than limiting the abilities of those who can compete.

Governor Fashola who made his position known at the opening ceremony of the public hearing by the South West Zone of the Senate Committee on the review of the 1999 Constitution added that: “In very simple words, that document must recognize our diversity. It must seek to build on that diversity as a source of strength that promotes us and not to limit us by constraining us”.

Continuing, the Governor said: “That Constitution must recognize that even though we are 36 States, we are many mini nations, occupying the territory of Nigeria. That document must recognize that we speak different languages. We live in different terrains. We have different strengths and weaknesses and that we cannot do the same thing at the same time to the same efficiency”.

While contending that no man is perfect and as such cannot produce anything perfect in the sense that it will meet unanimous approval, Governor Fashola said what will be acceptable would be a document that truly seeks to promote the greatest good for the greatest number of Nigerians.

He urged all Nigerians to resolve to pursue the Constitution review exercise with the sole purpose of making the Nigerian federation truly federal in name and in content by evolving amendments that will entrench fiscal and political federation as the twin pillars on which Nigeria’s democracy will be built and its national economy developed.

Governor Fashola lamented that the major regressive factors in the country’s history are the centralist tendencies which were entrenched during her many years of military dictatorship.

He added that the country’s best can only be attained when considerable leeway is guaranteed to each group to develop its own way and at its own pace and to profit reasonably from its own efforts, natural endowments and other situational advantages.

The Lagos State Governor added that this must be done with due regard for other groups in the nation and the need to empower the Federal Government to engage in those activities which by their nature must be carried out collectively.

He identified the demarcation of executive and legislative functions and distribution of accruable revenue between the States and the Federal Government in such a way to advance every consistent component into an equitable, secure and progressive future as one of the challenges which the Committee will contend with.

In his words: “I believe that once we resolve this policy standpoint, controversies about resource control, revenue allocation, local government, regulation and taxation of intra state trade and commerce, management of highways and waterways, organization of the police and the court system and so many other issues will become much easier”.

He also recommended that the Federal Government which ideally should act on behalf of the States in those areas where the State have agreed to act collectively through the Federal Government should not take more revenues than the States on whose behalf she acts.

Governor Fashola added that in the process of accounting for revenues accruing to the Federation, the lines of distinction have become blurred, calling for the provision for an Accountant General for the Federation who accounts for the States and the Federal Government for revenues accruing to the Federal republic, while the Accountant General of the Federation just like his counterparts in the States limit his role to the share of the Federal Government revenues.

“In the area of political federalism, issues like intra city rail, Drivers License, transportation on water ways, tourism, power generation, transmission and distribution, security, especially State Police are issues that readily come to mind. The present unitary structure is indisputably a major reason why expected and possible progress has not been easily achievable in those areas”

“Apart from the fact that States that have judicial and legislative arms need to have capacity to enforce laws made by the States under its residual powers, the overload of all these responsibilities clearly cannot be best managed from Federal ministries based in the capital in Abuja”

“Increased States participation in power generation and distribution: issuance of Drivers’ License, to mention but a few, will bring a harvest of diverse opportunities and choices to the table to make these challenges easily surmountable”, Governor Fashola submitted.

He also called for the amendment of some provisions of the Constitution which have been enacted as decrees and have restricted the federal intent of the Nigerian Constitution.

“There is therefore the need to amend section 162(2) of the 1999 Constitution to extend the concept of derivation to all revenues flowing in the Federation Account, adding that in this case, the formula for sharing centrally collected revenue like Companies’ Income Tax, Custom, and Excise Duties and Education Tax would recognize the principles of derivation, having regard to the location of the person, property, activity or transaction which have been subjected to tax”, he emphasized.

He also called for a removal of Local Governments from the first schedule to the Constitution as they are not federating units while the State should be free to determine the roles to assign to each Local Government in their respective States instead of the uniform prescription in the fourth Schedule to the Constitution.

Concerning a legal framework for State participation in Policing in Nigeria, Governor Fashola argued that since the Constitution gives States and Local Government Councils distinct and exclusive areas of legislative competence like regulation of land use, markets, motor parks, environmental sanitation, urban planning, physical development, traffic on roads within the States, it is most appropriate, if not legally imperative for States to be given legal wherewithal to enforce the legislation made by the State House of Assembly in furtherance of the Constitutional powers.

Governor Fashola said the proposed legal framework should provide a structure that makes the State Police contingent answerable to State Governments through the State Commissioner for Police.

On the need to accord a Special status to Lagos, Governor Fashola urged the Constitution review Committee to give effect to the policy broadcast of Late General Murtala Mohammed while proclaiming Abuja as the federal capital when said he it will be unfair to expect Lagos State to bear the heavy burden of sustaining the substantial investment in the area on its own; by according the State a special constitutional arrangement of a special status and dedicated funds necessary for the health and survival of the State and ultimately of the nation.

He also called for the Federal Government to comply with Section 163 of the 1999 Constitution by remitting funds collected from persons employed in the Armed Forces and the Nigerian Police including stamp duty as well as income tax collected pursuant to Capital Gain Tax, income or profits of persons other than companies as well as Stamp Duty from companies to the States from which the tax or duty was derived.

Governor Fashola also advocated the amendment or repeal of the Taxes and Levies (Approved List of Collection) Decree No 28 of 1998 which limits the States and Local Government on mode of collection and administration of taxes thereby interfering with the autonomy of the second and third tier of Government as well as the Value Added Tax Act.

He also called for a repeal of the National Sports Lottery Act, National Inland Waterways Authority Act as they encroach on the legislative competence of the states to regulate pools betting, lottery and competence of states to regulate activities of the State intra waterways.

He also called for an amendment of the provisions of Federal Highways (Use of Right of Way, Control and Prohibition of Advertising) Regulations 2005 and Federal Roads Maintenance Agency Act as amended because its provisions are in conflict with the Constitution which specifically provides that a Local Government shall be in control and regulation of outdoor advertising and hoarding.

He also lent the support of the State to the work done by the Justice Uwais panel on Electoral Reform and urged that the implementation of the core recommendations of the Panel that seek to guarantee the independence of the electoral umpire and their impartiality must be seen as the bedrock upon which the implementation of any amended constitution will stand.

While speaking, the Senate President, Senator David Mark congratulated Governor Babatunde Fashola (SAN) for the wonderful job he is doing in Lagos and urged him not be distracted by the various distractions that abound.

He also called for the provision of constitutional roles for traditional rulers because they have a lot to contribute.

Senator David Mark said the Senate is on the same page with Governor Fashola in terms of the reforms he is advocating in the country’ s laws, adding that Nigeria must always have free and fair elections.

While urging everyone to feel free to come forward with their viewpoints on what the new Constitution should look like, Senator David Mark said there are no fived positions on the amendments.

In his submission, Osun State Governor, Prince Olagunsoye Oyinlola who was represented by her Deputy. Erelu Olushola Obada called for the handing off of Agriculture, Education and other social services by the Federal Government to the States.

Prince Oyinlola also called for granting of fiscal autonomy to the states as it was with the independence Constitution of Nigeria, advocating that the new allocation formula should have Federal Government having 35percent, States 42percent while Local Government will have 23percent.

Earlier in a welcome address, the Senate leader who is also the Chairman of the South West Sub Committee, Senator Teslim Folarin emphasized that the National Assembly is determined to ensure a review of the Nigerian Constitution.

He disclosed that before March 2010, the electoral process would have been completed by the National Assembly.

The event was witnessed by Deputy Governor Princess Sarah Adebisi Sosan, Speaker of the Lagos State House of Assembly, RT Hon Adeyemi Ikuforiji, many distinguished Senators, traditional rulers from all parts of the South West including the Oba of Lagos, Oba Rilwan Akiolu I, pro-democracy groups and political leaders from all the States in the South West Geo- political zone.