Fiscal federalism key to prosperity – Enwegbara

Leading Management and Financial
Consultant, Mr. Odilim Enwegbara has said
that fiscal federalism remains the only key
way Nigeria can move into economic
prosperity.
Enwegbara stated this while briefing newsmen
on the just concluded National Conference in
Abuja.
He said political autonomy without fiscal
autonomy has failed Nigeria in the past
decades of its practice and is weakening the
current federal system in Nigeria.
Enwegbara who lauded the delegates at the
national conference for their dedication to
duty argued that states should be driven by
inward-looking economic system, dependent
on their internal generated revenues, IGRs as
their mainstay.
He further called for reintroduction of 1963
constitution which mandated every mineral
producing state to take 50 per cent of the
proceeds and contribute 50 per cent to the
centre for its development.
He faulted General Gowon, Buhari, IBB and
Abdulsalami that built the system.
He further argued that since offshore oil is an
exclusive economic zone under the convention
of the law of the sea, it should belong to the
sovereign state, while the onshore production
should belong to the states where the oil is
produced, with the state making a derivation
contribution of 50 per cent to federal
government.
“Political federalism is what we have been
practicing with fiscal federalism. Political
autonomy with fiscal autonomy is what
weakens federalism in Nigeria. If we want to
move forward, states should be driven by
inward-looking economic system, dependent
on their IGRs as their mainstay.
“Because each state controls its resources, it
moves at its own pace based on such factors
as human and natural resources endowment.
Resource control is important if oil
communities should be allowed to be involved
in oil production and protection,” he said.
According to him, resource control will helpful
if the mineral communities should be involved
in the exploration of the resources and
protection of the facilities.
The economist also recommended a clear
separation between foreign direct investment
and foreign private investment to avoid undue
exploitation of Nigerian economy and equally
called for support for the new auto policy to
encourage the indigenous companies.