Reconfiguration: beyond crude oil, by Ita Benedict

By Ita Benedict

Nigeria’s history with federalism and economic development is complex.

Before the discovery of oil in the Niger Delta in 1957, Nigeria operated a federal system that allowed regions to develop at their own pace.

This system enabled regions to explore their economic potentials and generate revenue internally.

For instance, the Northern region taxed cows, which contributed to their internally generated revenue.

However, the discovery of oil significantly altered the country’s economic landscape.

Oil revenue became the primary source of income, leading to a decline in regional economic development.

The Niger Delta region, where the oil is primarily extracted, has not benefited significantly from the oil wealth.

The resistance from the North to the tax reform bill suggests a reluctance to embrace economic self-reliance.

Despite having abundant resources, including californium, a prized mineral used in nuclear applications, the North has not adequately explored these resources.

The current tax system also has inconsistencies. For example, the North receives VAT revenue from states that sell alcohol, despite banning alcohol consumption in their region.

The tax reform bill aims to address these issues and promote economic fairness.

The President’s commitment to passing the tax reform bill is a step in the right direction.

This bill has the potential to correct the anomalies in the current tax system and promote economic development in all regions.

As Yakubu Dogara, former Speaker of the House of Representatives, noted, this bill presents an opportunity for the North to look inward and develop its economic potentials.

The success of this bill depends on the President’s ability to effect economic and political reforms that align with fiscal federalism.

His activism in pursuit of a truly federal system, as seen in his past efforts to create additional local government areas and generate electricity independently, suggests that he may be committed to this cause.

Ultimately, the President’s ability to secure a fair and equitable country, where all states can develop their economic potentials without undue interference, will determine his legacy.

Can he reinvent his image and work towards a better future for Nigeria? Only time will tell.

For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook