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 lever