“”Can Execute Orders Overide Act Of Parliament’? Nigerians Ask
President Bola Tinubu has signed an order directing that all oil and gas revenues owed to the government be paid directly into the federation account, in sweeping reforms aimed at boosting public finances, the presidency said on Wednesday.
Most Nigerians have commended president Tinubu for the bold steps in ensuring that monies due to the federation are paid inro appropriate accounts for development.
However, some Nigerians are raising concerns that the recent increase in funds to governors, resulting from the removal of fuel subsidies and the new directive of oil and gas revenues to the Federation Account, would mean more money going to the Governors.
But most Nigerians are unanimous in their submissions that the positive impact of increased allocations from the federation account has not been felt by the masses in most of the states.
The concerns are centered around the lack of accountability and the non-implementation of local government autonomy, which has allowed governors to maintain significant control over funds meant for local development.
While wielding enormous powers in their respective states, the governors more often than not allegedly abuse such privileges with brazen actions and decisions that go against the tenets of democracy.
The weight of governors’ powers is profoundly felt in the buildup to elections, as the country is experiencing, inclucing , for instance, the prominent roles they play in deciding ‘who gets what’ in the scheme of things, both at the state and federal levels.
Indeed, the 2023 fuel subsidy removal led to a substantial increase in the monthly revenue allocations accrued to state and local governments from the federation account, yet the masses have not felt the impact.
The 2023 States’ Annual Report of the Federal Account Allocation Committee (FAAC) obtained by the NAN showed that from January 2023 to May 2023 (fuel subsidy era), the 36 states received a total net allocation of N1.19 trillion. But from June to December of the same year when the president removed the subsidy, the FAAC disbursement to the 36 states doubled, rising from N1.19 trillion to N2.31 trillion, according to the records obtained from the Nigeria Governors’ Forum Repository.
Also, between January 2024 and June 2024, the FAAC disbursed a total sum of N2.16 trillion to the 36 states. During the period, the 20.6 per cent due to the 774 local government areas was equally paid to the states via joint accounts.
As it is today, no council chairman dares challenge the governor’s control of the local government funds. For instance, an attempt by the chairman of Ijebu-East Local Government Area of Ogun State, Wale Adedayo, last year to question the alleged diversion of N11 billion, which Governor Dapo Abiodun denied, was futile.
Specifically, under the law, the Nigerian National Petroleum Corporation keeps 30% of oil and gas profits for frontier exploration in inland basins. The presidency said those funds will now be paid into the federation account and appropriated by the government.
NNPC also retains 30% of oil and gas sales as operational costs and receives 30% of proceeds from Production Sharing Contracts. Under the new directive, all revenues under these arrangements will flow directly to the federation account, while the company will instead receive appropriated management fees.
Royalty payments, petroleum profit taxes and other statutory revenues previously collected and retained by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will also be paid directly into the Federation Account.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will likewise remit its revenues in full, with its cost of collection to be funded through appropriation.
Tinubu’s office said deductions enabled by the law had sharply reduced net oil inflows and contributed to fiscal strain across federal, state and local governments. The president also ordered a review of the law and established an implementation committee to enforce the changes.
While most Nigerians have continued to commend president Tinubu for the decisive action, the fears are growing on potential negative effects of more money flowing to governors for electoral malpratices like vote buying, financial muscle to rig elections and maintain their grip on power.
Besides, others contend that the president now has enough war chess to demand and effect political compliance from governors on any issues, including, defections, among others.
Also, recent political developments typfied by defections and realignments may have increased the influence of governors who have brazenly demonstrated their powers in outright dissolution of local government councils in states previously ruled by opposition parties as well as dissolving party structures to erect new ones comprising of their loyalists.
These developments have become the new normal even as they are instances where the governors, both past and current, have gone overboard in some of the actions they took.
Rivers state is currently engulfed in crisis between the governor and his godfather bothering allegedly on the management of available huge sums of money at the disposal of the governor
It would be recalled that the immediate past governor of Edo State, Godwin Obaseki, refused to inaugurate some members of House of Assembly who were not members of his party.
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Also, the governor of Plateau State, Caleb Mutfwang, shocked many when, just a few months after his inauguration, he started having issues with the state House of Assembly.
Another case was that of Kogi State, where the governor, Ahmed Usman Ododo, in what seemed as appreciation for the role his predecessor, Yahaya Bello, played in his emergence as governor, shielded the latter from arrest by operatives of the Economic and Financial Crimes Commission (EFCC).
At a time, the anti-graft agency went to the Abuja residence of the former governor to effect his arrest, but rather than submit to the operatives of the agency, the former governor reportedly sought the intervention of the governor, who was said to have driven to his house to offer some ‘protection.’
Even when Bello chose to submit himself for interrogation, still hiding under the governor’ s immunity, he elected to go with him, and because of that, the anti-graft agency declined attending to him.
Also, between 1999 and 2007, Bola Ahmed Tinubu, while serving as Lagos State governor, also demonstrated the unending powers of Nigerian governors.
It would be recalled that he removed his then deputy, Kofo Akerele Bucknor and replaced her with Femi Pedro, who he also replaced with Abiodun Ogunlewe, in a spate of eight years.
Both Bucknor and Pedro lost their seats clearly due to political disagreements with the then governor. The case of Pedro was more dramatic as he was impeached on May 10, 2007, weeks to the end of their tenure.
Infact, the ruling All Progressives Congress (APC), as part of crisis resolition mechanisms has continued to uphold the leadership of governors in their respecrive states. The governors have continued to exploit this privilege to their advantage. For instance, it has become a ritual for two-term governors to run for senatorial seats at the tail end of their tenure, with little or no pushback from members of their parties.
Governors are equally a force to reckon with in taking key national economic decisions. It is no surprise that they are members of the Federal Economic Council.
Prior to President Tinubu’s historic “subsidy is gone” pronouncement on May 29, 2023, the Nigeria Governors Forum (NGF) had called for fuel subsidy removal, a move some analysts believe emboldened the president to swiftly take such critical decision.
The concerns of most Nigerians are centered around the lack of accountability and the non-implementation of local government autonomy, inspite of efforts of the federal government, and this has allowed governors to maintain significant control over funds meant for local development.
While commanding president Tinubu for the bold step, the question of legality is being raised by some experts.
“I think the ideal thing would have been the president writing to the National Assembly to amend the PIA and not necessarily through executive fiat, since the act was the creation of the parliament. But, this is Nigeria, where anything can happen, particularly, under the present administration,” says an analyst.
