Headlines
CBN former governor Soludo calls for total restructuring of Nigeria’s federalism
- Says it’s impossible to build a 100-storey building upon the foundation of an old bungalow
BY KAZIE UKO
As Nigeria celebrates 59th independence anniversary today, former Governor of Central Bank of Nigeria (CBN) Prof Chukwuma Charles Soludo has called for the complete restructuring of Nigeria’s foundation, if she were to cater for her estimated 400 million population, by 2030.
Prof Soludo spoke at this year’s Independence Day edition of The Platform, a public policy analysis programme of the Covenant Christian Centre, Iganmu, Lagos.
The former CBN governor in his speech, ‘Economic and Institutional Restructuring for the Next Nigeria,’ likened the foundation, the 1999 constitution, upon which present day Nigeria is built as that of an old bungalow, describing it as too weak to sustain Nigeria of the future.
“Our summary message is that an alternative glorious future – the next Nigeria for 400 or 752 million Nigerians – is possible. It is a future without oil but powered by our greatest asset – human capital plus technology, and which guarantees security, prosperity and happiness.
“But transition to that future requires a new foundation as it is impossible to try to build a 100-storey building upon the foundation of an old bungalow,” he said.
According to Soludo, who was recently appointed into President Muhammadu Buhari’s Economic Advisory Council (EAC), in designing the new foundation for Nigeria of the future certain critical elements will have to be put into consideration.
These include what he termed a Productive Progressive Constitution (PPC) that creates a competitive federation; devolution of powers that unbundles Abuja and loosens its choking stranglehold on the economy; a fiscal federalism that promotes competition, innovation and hard work; a new judicial structure and performance that brands Nigeria as a country of laws with the best judiciary in Africa; and a new developmental politics with citizens power.
A call for restructuring…
Elaborating on the foregoing Soludo said: “The PPC should define a new Fiscal federalism that is consistent with devolution of powers and which alters the incentives faced by economic and political actors, thereby unleashing the competitive spirit, hard work, innovation and efficiency which are the hallmarks of prosperous economies of the future. Fiscal relations affect the behaviour of firms, households and governments and hence economic activity.
“The local government system should be scrapped from the Constitution. A federation has two federating units and not three – each state should decide on appropriate local government system for it.
“Section 162 of the 1999 Constitution needs to be scrapped and replaced with a fiscal arrangement that is consistent with devolution of powers.
“We also need to abrogate the Land Use Act of 1978, the Solid Minerals Act, as well as the various Petroleum/Gas Acts and amendments, and return the right of ownership, control and exploitation of these assets to the federating units as proposed by the APC Committee on restructuring, led by Gov El-Rufai (Kaduna State). In turn, they should pay appropriate taxes to the federal government.”
Prof Soludo said a prosperous economy, in the 21st century, was not sustainable without a sound and efficient judicial system adding that Nigeria would need a progressive and practical new structure that can deliver justice to citizens and businesses at the shortest possible time.
“As a layman, we wonder why Nigeria can’t have state or zonal appeals and supreme courts over local and state matters or why state election matters should go to federal courts in a federation.
“The PP Constitution should provide for specialised courts, especially commercial courts. Nigeria needs to invest heavily on the judiciary – infrastructure with cutting edge technology as well as continuous upgrading of knowledge/skills of judges.
“Our judiciary should be part of our brand. Let’s do what it takes to brand Nigeria as a nation of laws. For example, London could not have become an international financial centre without efficient judicial system or thousands of contracts in the world indicating London as the jurisdiction for adjudication/arbitration.
“Can we at least target to be the number one legal jurisdiction in Africa? With AfCFTA, businesses will relocate to more friendly environments since they will have access to all African markets. As Africa’s largest economy, we ought to have its best judiciary.
“Furthermore, we need to consciously deploy law as an instrument of socio-economic transformation by enacting relevant laws to unleash competition and enterprise as well as progressive regulations for the future economy. Our ministry of Justice should have a new job description that is developmental,” he expounded.
The cup is half full, not half empty…
Notwithstanding the mirage of problems besetting the country after almost 60 years of nationhood, Soludo chose to look at the issues from a rather positive angle.
Waxing philosophical, he said: “Of course, Nigeria has a long list of problems, but adversity comes with opportunities. With a will to overcome, the problems should not stop us. Nor should a few thousands of miscreants – kidnappers, terrorists, internet scammers, bandits, drug barons, robbers, and treasury looters – define us.
“As we build the foundation for the next Nigeria, we must seize the narrative and sing a new song to rebrand Nigeria.
“As we bemoan the rising poverty and unemployment, we still remind ourselves that ours is still the largest economy in Africa and Nigeria as home to the most populous black nation on earth.
“When I hear about the 77 FBI list, I remember that Nigerians constitute the most educated and highest earning immigrant community in the US; when I hear about the drug barons, I remember that Alaba Market has the largest business incubator in the world; when the news about kidnappers, bandits and terrorists adorn the newspaper headlines, I remember the over 200 million law abiding and hard-working citizens; when I hear about the afrophobia and the stereotyping of Nigerians in South Africa, I recall that the richest black man and woman – Dangote and Mrs Alakija are Nigerians, or that Tony Elumelu foundation is empowering thousands of young African entrepreneurs or Allen Onyema/Air Peace recently took over the job of government by transporting hundreds of Nigerians from South Africa free of charge or that Glo communications is owned by our own Mike Adenuga or that the former Secretary General of the Commonwealth – Chief Emeka Anyaoku is a Nigerian, and yes, Nigerian banks – Zenith, GTB, UBA, Access, FBN, Union, etc have, since after banking consolidation, become our multinational corporations all over Africa, and that Nigerian investment banker, Adebayo Ogunlesi, bought Gatwick and other airports in the UK.
“When someone remarked that Obinwannne, the famed Forbes kid alleged scammer is from Nnewi, I quickly reminded him that Ibeto, Innoson Motors, Chikason, Coscharis, Emeka Offor, etc are also from the old Nnewi. When someone tells me that our youths are underperforming, I remind her of the youths at the Ikeja Computer village or that a young man from Anambra just invented a generator that runs on water or the young girls from Regina Pacis secondary school, Onitsha who won the global prize for innovation, and don’t forget that the patent for the world fastest computer belongs to Philip Emeagwali and that Jelani Aliyu from Sokoto, designed the Chevrolet Volt car.
“Or when anyone tells me that Nigerians can’t write, I mention our Nobel Laurette Wole Soyinka, Chinua Achebe, and yes, the new kid on the block- Chimamanda Adichie, etc.
“When I hear of the looting leaders of today, I remember the visionary and selfless leaders of yesterday – Nnamdi Azikiwe, Obafemi Awolowo, Ahmadu Bello, M.I. Okpara, Alex Ekwueme, Shehu Shagari, Sam Mbakwe, Aminu Kano, Balarabe Musa, Bola Ige, Lateef Jakande, Samuel Ogbemudia, and yes, former President (Olusegun) Obasanjo has earned his place in Nigeria’s history as a leader and statesman, etc.
“Of course, we won’t forget our footballers, athletes, musicians and Nollywood stars – all brandishing our green, white, green flag to the world.
“The list is long, and sometimes I wish that Wole Soyinka or Chimamanda would write a bestseller entitled: “Nigeria: The Counter Narratives”.
“The point here is that for every one big challenge, there are possibly more than ten opportunities out there. I believe that God has blessed Nigeria with everything to be the most prosperous home for the black race.
“We need to unleash the creative geniuses in our people by designing the appropriate institutions to power a 21st century economy without oil. The current National Assembly can choose to do something historic or continue to kick the can down the road, and hopefully a future parliament will come to the rescue.
“We have no other country but Nigeria and we must make it work. If God, in His infinite wisdom, decided to put us together thus far, there must be a reason.
“As Africa deepens its integration (starting with the AfCFTA), I dream of a future United States of Africa, and possibly with Nigeria as its California. I see our huge problems but I focus on the solutions. The choice is ours, and I believe that if we (together) choose to work hard at them, the next Nigeria of our dream is possible!”