Feature/OPED
Dysfunctional Federalism and the Centre Called Abuja
By Jerome-Mario Utomi
In the words of James Tar Tsaaior, Professor of Media and Cultural Communication, School of Media and Communication, Pan Atlantic University, Lagos, the circle looks harmless and innocuous’ but it is not. It is guilty of certain politics, inclusionary and exclusionary politics.
Every circle has its centre and margin, its core and periphery. The centre is the point of attraction because of its strategic position. Anything outside of the centre does not validly belong to the circle. It exists as a tangent, beyond its orbit or circumference.
It is interesting how the mathematical sign of the circle has become an idea for instituting cartographic domains, political hierarchies, economic zones and cultural categories in today’s global neighbourhood. These include the global North and South, the First and Third Worlds, the metropolis and the province, the centre and margin and the core and the periphery, among other binary oppositions.
Likewise, here, Abuja represents the centre. It is the capital city of Nigeria. It is in the middle of the political circle called Nigeria. The skyline of the city, which was built largely in the 1980s, is dominated by Aso Rock, an enormous monolith. It rises up behind the Presidential Complex, which houses the residence and offices of the Nigerian president in the Three Arms Zone on the eastern edge of the city. Nearby are the National Assembly and the Supreme Court of Nigeria.
The city overtly and covertly shares the above attributes of a centre.
In the spirit of the true federal system, Abuja and the federal (central) government, was originally meant to operate as a coordinating government and not as a controlling government and has the exclusive responsibility for the mutually agreed common national services.
But contrary to expectation, Abuja is guilty of certain politics as it presently ‘enjoys’ political obesity- welding much power to the detriment of the federating states. Laced with the spirit of command and control, and has asymmetrically cornered to itself responsibilities such as the Armed Forces, Nigerian Police, Citizenship, Customs, Central Bank of Nigeria/National Currency, Immigration, Foreign Affairs including Foreign Trade, National Education Standards, but not Educational Institutions (Primary, Secondary and Tertiary Levels, National Scientific, Technological and Industrial Goods Standards including Agricultural/Mineral Commodity Export Standards, Trunk A Roads or Interconnecting High ways of Nigerian Federation, among others.
Evidently, for the reason that the ‘constitution we inherited (1999 constitution as amended), from the military is as faulty as it is now outdated; and did not originate from “the people” but rather a product of imposition’, it made slanted provisions that mirrors government at the centre as both ‘captain and coach’ of other federating states thereby characterizing Abuja as a general surrounded by many lieutenants. This set the stage for the nation’s dysfunctional federalism.
Today, Abuja means different things to different people.
To some lazy state governors, who are clueless about increasing their state’s internally generated revenue (IGR), and depend solely on federal allocation, Abuja, means a ‘dispenser of goodness’.
For politicians outsmarted in their states, Abuja is the ‘wilderness of consolation and a desert of hope’. For those that lost elective positions in their states/constituencies, Abuja is the centre where the sweet phrase; ‘weep not child’ can only be heard via political appointments and contracts.
This inglorious disparity in the power-sharing arrangement has rendered as unabated the need for restructuring the relationship between the centre and the states to reflect true economic and political federalism that will allow for resource control by the varying states while paying the constitutionally stipulated taxes to the centre.
Compounding this present national challenge is the posture of President Muhammadu Buhari, who presently sees nothing to restructure in the political edifice called Nigeria.
To add context to the discourse, represented by the Executive Secretary, Revenue Mobilization, Allocation and Fiscal Commission, Alhaji Mohammed Bello Shehu, at the launch of Kudirat Abiola Sabon Gari, Zaria Peace Foundation which took place at Ahmadu Bello University Hotels, Zaria, Mr President said as follows; “Again, those who are discussing restructuring, my question is, what are you going to restructure? If you ask many Nigerians what they are going to restructure, you will find out that they have nothing to talk about.
“Some of them have not even studied the 1999 Constitution. The 1999 Constitution is almost 70 to 80 per cent the same with that of the 1979 Constitution.”
Unmistakably, there exist two reasons that qualify Mr President’s latest position on the state of the nation as a crisis and deeply troubling.
First, it is coming a few years after the same Mr President noted while delivering a nationwide broadcast on Monday, January 1, 2018, that ‘no human law or edifice is perfect. Whatever structure we develop must periodically be perfected according to the changing circumstances and the country’s socio-economic developments.’
Identifying those imperfections and catalysing the process of reforming this changing circumstance as muted by the president should be the preoccupation of all at the present circumstance.
The second concern is that Mr President is not alone in this deformed argument.
Recently, some Nigerians argued that President Buhari was elected by Nigerians and he is the symbol of the sovereign many talked about. Therefore, asking him to convoke a Sovereign National Conference for the purpose of restructuring Nigeria is to ask him to abdicate the high office of the presidency of Nigeria, that is, to surrender his powers, office to a group of elected or selected persons who now determine the tenor of the federation.
While this piece accepts the above reasoning is true, the argument is, however, plagued/deformed by its decision to remain silent or failure to remember that Mr President is also constitutionally empowered to demand from the national assembly via executive Bill, amendments of the constitution according to the changing circumstances.
In simple language, this is what Nigerians want/demand and will appreciate if Mr President performs this function at the most fundamental level.
Supporting this claim is a statement credited to the President-General of Ohanaeze Ndigbo, Prof. George Obiozor as it lays bare what Igbos and the generality of Nigerians demands.
He said in parts; fundamentally, what Ndigbo really want is some form of internal autonomy based on a restructured Nigeria.
Categorically stated, we are of the view that the federation of Nigeria must be a union of equals and the composite units must have the ability to stand without begging the centre for survival. That is a federal system of government with its characteristics of decentralization and devolution of power among the federating units”.
From the above reason flows yet another concern which has to do with justice. Globally, there exists a veiled agreement that justice has two different faces, one conservative of existing norms and practices, the other demanding reform of these norms and practices.
Thus, on the one hand, it is a matter of justice to respect people’s rights under existing law or moral rules, or more generally to fulfil the legitimate expectations they have acquired as a result of past practice, social conventions, and so forth.
On the other hand, justice gives us reason to change laws, practices and conventions quite fundamentally, thereby creating new entitlements and expectations.
While those of us who believe in the unity of Nigeria may not agree with the campaign of any group or ethnic nationality to dismember Nigeria, the truth must be told to the effect that the whole gamut of restiveness and resurgence demand for the dissolution of Nigeria stems from mindless exclusion, injustice and economic deprivation.
The best way to reverse this trend is to first acknowledge that the constitution we inherited from the military is as faulty as it is now outdated. And most importantly, we must make Abuja/the government at the centre shed some weight via power devolution. Call it restructuring, you may not be far from the truth!
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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