‘Atiku’s concept of restructuring is understandably vague’ – Osinbajo replies his predecessor in an explosive letter

‘Atiku’s concept of restructuring is understandably vague’ – Osinbajo replies his predecessor in an explosive letter

Nigeria’s Vice President, Yemi Osinbajo, has replied his predecessor and presidential aspirant, Atiku Abubakar, who criticised his stance on restructuring.  

Osinbajo who spoke within the U.S. about restructuring not being Nigeria’s main downside mentioned, “It is about managing sources correctly and offering for the individuals correctly, that is what it is all about”.

Atiku Abubakar who is additionally a former vice chairman nonetheless mentioned Osinbajo bought it mistaken, “It is a shock that the Vice President would take such a place and, particularly, fail to understand the connection between Nigeria’s faulty construction and its underperformance,” he mentioned.  

The vice chairman has now replied Abubakar in a signed letter addressed to the edito of PREMIUM TIMES.  

Learn the complete letter under.

Pricey Editor,

Kindly allow me a response to a bit in your publication, titled “Osinbajo bought it mistaken on Restructuring,” written, we’re advised, by my illustrious predecessor in workplace, Alhaji Atiku Abubakar.

First, let me say that I actually would have anticipated Alhaji Abubakar to a minimum of get the complete textual content of my feedback earlier than his public refutal of my views. However I perceive; we’re in that season the place every part is seen as honest recreation! He quoted me as saying that “the issue with our nation is not a matter of restructuring… and we should not permit ourselves to be drawn into the argument that our issues stem from some geographic re-structuring”.

Sure, I mentioned so.

Because the quote exhibits, I rejected the notion that geographical restructuring was an answer to our nationwide issues. Geographical restructuring is both taking us again to regional governments or rising the quantity of States that make up the Nigerian federation.

As all of us might recall, the 2014 Nationwide Convention really really helpful the creation of 18 extra States. And I argued that, with a number of States struggling or unable to pay salaries, any additional tinkering with our geographical construction wouldn’t profit us.

We should always somewhat ask ourselves why the States are underperforming, income and improvement smart. I gave the instance of the Western Area (comprising much more than what is now often known as the South West Zone), the place, with out oil cash, and utilizing capitation tax and revenues from agriculture and mining, the federal government funded free training for over 800,000 pupils in 1955, constructed a number of roads, farm settlements, industrial estates, the primary TV station in Africa, and the tallest constructing in Nigeria, whereas nonetheless giving up fifty % of its earnings from mining and minerals for allocation to the Federal Authorities and different areas.

I then argued that what we required now was not geographical restructuring however good governance, trustworthy administration of public sources, deeper fiscal Federalism, and a transparent imaginative and prescient for improvement.

On the problem of deeper fiscal Federalism or restructuring, I defined how the then Lagos State Authorities, led by Asiwaju Bola Ahmed Tinubu, determined to combat for better autonomy of States.

As Lawyer-Normal on the time, it was my responsibility and privilege to guide the authorized group towards the then Federal authorities, in our arguments on the Supreme Courtroom. I’m certain that Alhaji Atiku Abubakar would bear in mind these instances on better autonomy for States that I cite under, as he was Vice President of the Federal Republic of Nigeria on the time.

On the Supreme Courtroom, we received a number of landmark selections on restructuring Nigeria by deeper fiscal federalism, some of which our late converts to the concept, now want to rating political factors on.

It was our counter-claims alongside these of different littoral States, that first addressed so comprehensively the problem of useful resource management. We agreed with the oil producing States that that they had a proper to regulate their sources. We argued, although unsuccessfully, that the Ports of Lagos had been additionally a useful resource, which ought to allow Lagos State, within the worst case, to be paid the derivation proportion for proceeds of its pure sources. Years later, we additionally filed an motion on the Supreme Courtroom arguing that the Worth Added Tax, being a consumption tax, ought to solely belong to the States.

On the problem of who, between the Federal and State governments, ought to have authority to grant constructing permits and different improvement management permits, the Supreme Courtroom, by a slim majority, dominated in our favour. It held that, even with respect to federal land, States had unique authority to grant constructing or different developments management permits.

In 2004, we created 37 new native governments in Lagos State. We believed that we had a Constitutional proper to take action and that in any occasion, a State ought to have a proper to create its personal administrative items. A number of different States joined us and created theirs.

The Federal authorities’s response was to grab the funds meant for our native governments, thus strangulating States like Lagos, which had created new native governments. We challenged this on the Supreme Courtroom. The courtroom held that the President had no proper underneath the Structure to withhold or seize funds meant for the States. The allocations weren’t a present of the Federal Authorities to the States. They had been the Constitutional proper of the States and native governments.

The courtroom additionally agreed that States had a Constitutional proper to create native governments, pursuant to part 8 of the Structure, however that the creation remained inchoate till the Nationwide Meeting, by decision, amended the prevailing record of native governments to seize the newly created LGs.

In response, we created by State Regulation, Native Council Improvement Areas (LCDAs), to accommodate the newly created Native Authorities Councils till such a time because the Nationwide Meeting would full the method. However the Lagos State Authorities took up the problem to re-engineer its income service, making it autonomous. With revolutionary administration, tax assortment in Lagos turned extra environment friendly, and tax revenues continued to develop geometrically. At the moment, the State earns extra IGR than 30 States of Nigeria put collectively!

Additional, we contested the makes an attempt of the then Federal Authorities to create supervisory authority over the Funds of Native Governments by the signing into regulation of the Monitoring of Income Allocation to Native Governments Act, 2005. The Supreme Courtroom additionally dominated in our favour, hanging down many provisions of the regulation that sought to offer the Federal authorities management over native authorities funding.

I’ve been an advocate, each in courtroom and out of doors, of fiscal Federalism and stronger State Governments. I’ve argued in favour of State Police, for the straightforward purpose that policing is a neighborhood perform. You merely can not successfully police Nigeria from Abuja. Solely just lately, in my speech on the Anniversary of the Lagos State Home of Meeting, I made the purpose that stronger, extra autonomous States would extra effectively eradicate poverty. So I don’t consider that geographical restructuring is an reply to Nigeria’s socio financial circumstances. That will solely lead to better administrative prices. However there will be little doubt that we want deeper fiscal Federalism and good governance.

Alhaji Atiku’s concept of restructuring is understandably imprecise, as a result of he seeks to cowl each side of human existence in that definition. He says it means a “cultural revolution”. After all, he doesn’t hassle to unravel this concept. He says we want a construction that offers everybody an alternative to work, a non-public sector pushed economic system. Sure, I agree. These are essential pillars of our Financial Restoration and Progress Plan (ERGP), together with our Ease of Doing Enterprise Programme.

If, nonetheless, this is what he describes as restructuring, then it is clear that he has combined up all the problems of good governance and diversification of the economic system with the argument on restructuring.

Good governance entails, inter alia, transparency and prudence in public finance. It entails social justice, investing within the poor, and jobs for younger individuals; which explains our College Feeding Programme, offering a meal a day to over 9 million public college kids in 25 States as of at the moment. Our NPower is now using 500,000 graduates; our TraderMoni that will probably be giving microcredit to 2 million petty merchants; our Conditional Money Transfers giving month-to-month grants to over 400,000 of the poorest in Nigeria. The plan is to cowl 1,000,000 households.

Surprisingly, Alhaji Atiku leaves out the elephant within the room – corruption. And the way grand corruption, fueled by a rentier financial construction that advantages those that can use political positions or entry to both loot the treasury or get favorable concessions to complement themselves. This was a foremost half of my displays the Minnesota City Corridor assembly.

In arguing for good governance, I made the purpose that our best downside was corruption. I identified that grand corruption, particularly the unbelievable looting of the treasury by merely making large money withdrawals in native and overseas forex, was the primary travesty that President Buhari stopped.

I confirmed the OPEC figures from oil revenues since 1990. In 4 years from 2010 to 2014 the PDP authorities earned the very best oil revenues in Nigeria’s historical past, USD381.9billion. Against this the Buhari Administration has earned USD121 billion from Might 2015 to June 2018, lower than 1/3 of what Jonathan Administration earned on the similar interval in that administration’s life. Regardless of incomes a lot much less, we’re nonetheless in a position to make investments extra in infrastructure than any authorities in Nigeria’s historical past. The distinction is good governance, and financial prudence.

Within the last evaluation, restructuring in no matter form or type, won’t imply a lot if our political leaders see public sources as an extension of their financial institution accounts. This, I consider, is the actual concern.


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