Additional reports by Oluwadamilola Ojetunde and Victoria Nwaziri

The sharing of N12.84 trillion, (12,846,756,475,008.90) to 774 local governments in the country shows gross marginalisation of some states and inequality in the distribution of the nation’s wealth.

The money was the total monthly allocation from the federation account to local governments from January 2007 to March 2017.

Despite the fact that Udi Local Government Area (LGA) in Enugu State is more populated (by 291 persons) than Bagudo LGA in Kebbi State, the latter receives a higher allocation from the federation account.

Based on the 2006 census, the population of Udi is 238,305 while Bagudo’s is 238,014. Between January 2007 and March 2017, Bagudo received N17, 760,612,529.61 from the federation account — higher than Udi with N17, 423,721,536.36.

That Bagudo received N336 million more than Udi over a 10-year period seems insignificant but the disparity in allocation widens when the states are compared.

Just as Udi is ahead of Bagudo in population, Enugu State is also more populated than Kebbi State by 11,296 people. However, Kebbi has 21 LGAs while Enugu has just 17 LGAs.

The 17 LGAs in Enugu received N274.9 billion from the federation account, representing 2.14 percent of the total allocation to all the LGAs in the country, while the 21 LGAs in Kebbi with lesser population have been allocated N326.1 billion, representing 2.54 percent of the total allocation to LGAs over the 10-year period.

The N51 billion gap in allocation between Enugu and Kebbi is significant enough for those in Enugu to ask why the state is being treated differently in the distribution of national income.

Both states were created on August 27, 1991, by Ibrahim Babangida, the former Military Head of State. Enugu was carved out of Anambra State while Kebbi was created from Sokoto State.

This unequal distribution of the nation’s wealth through the LGAs is replicated across several states, with states in the South-East being the most short-changed.

Niger and Anambra States were created on the same day in 1976. Niger has 25 LGAs while Anambra has 21 LGAs.

In 10 years, the 25 LGAs in Niger received N413.8 billion from the federation account, representing 3.22 percent of total allocations to LGAs. But Anambra received a far lower allocation of N334.6 billion, representing 2.6 percent of total allocation to all LGAs. However, Anambra population’s of 4,177,828 is bigger than Niger’s, which is 3,954,772.

The case of Anambra is unfair when compared with other states that have almost equal population but have a far higher allocation on the basis of LGAs.

Jigawa State, which was created from Kano State in 1991, has a population of 4,361,002 with 27 LGAs. The LGAs in the state have been allocated N408.4 billion in 10 years.

But Rivers state, with a population of 5,198,716 and just 23 local governments, received N397.8 billion — far lesser than Jigawa that has a lower population.

Rivers’ neighbour, Akwa-Ibom  State, received 441.6 billion, representing 3.44 percent of total LGAs allocation, but Akwa-Ibom has just a population of 3,902,051; it also has 31 LGAs.

What is the justification for Akwa-Ibom to have 31 LGAs and receive more allocation while Rivers with higher population has only 23 LGAs with a lower allocation from the federation account?

However, having more LGAs does not mean a state will have more allocation. The 20 LGAs in Lagos State have been allocated more money from the federation account than any other state, except Kano.

The 20 LGAs in Lagos received N704.4 billion from the federation account, representing 5.8 percent of the total allocation to LGAs.

The population of Lagos is 9,113,605 — a little lower than Kano with a population of 9,401,288, according to the 2006 census.

Although Kano has more than twice the LGAs in Lagos, the total allocation to 44 LGAs in the state is N728.7 billion, representing 5.67 percent of the total allocation to all the LGAs in the country.

The difference in allocation between Kano and Lagos is just N24 billion over the 10-year period despite the fact that Kano has more than twice the number of LGAs.

This case of allocation between Lagos and Kano is not the same as that of other states with similar population and different number of LGAs.

Anambra State is more populated than Niger State but Niger gained N79 billion more than Anambra in the allocation to LGAs from the federation account.

SKEWED FEDERAL SYSTEM

The country’s earnings are kept in the federation account. Every month, this money is shared by the three tiers of government.

The sharing among the federating units is vertical — the federal government takes the lion share of 52.68 percent, states follow with 26.72 percent while the local governments receive the remaining 20.60 percent.

Each month, the Federation Account Allocation Committee (FAAC) determines how much from the federation account is to be shared, depending on how much the country makes for that particular month.

However, the imbalance and unfairness are observed in the horizontal sharing of the 26.72 percent allocated to the 36 states and 20.60 percent to the 774 local governments from the federation account.

Just as the analysis of the sharing of 20.60 percent from the federation account among the local governments has shown much disparity and unfairness, the sharing of 26.72 percent of the states also uses the same template of local governments.

The implication is that states which have fewer numbers of people are getting more money from the federation account than states with higher population.

These exploitative conditions were created by military administrations that exhibited blithe disregard for due process and equity in the creation of states and local governments. States and local governments were created at the discretion of military leaders.

States and local governments were arbitrarily created by military dictators, starting with the creation of first 12 states out of the four regions of the country on May 27, 1967, by Yakubu Gowon, the former Head of State.

Murtala Mohammed increased the states to 19 on February 3, 1976, with the addition of Federal Capital Territory, Abuja.

Ibrahim Babangida created two states on September 23, 1987, and another nine states on August 27, 1991, bringing the total number of states to 30.

Sani Abacha increased the states to 36 on October 1, 1996.

These structures of states and local governments created by the military have remained unchanged since the return of democratic rule in 1999.

A CASE FOR RESTRUCTURING

Efforts to redress the imbalance in the creation of states and local governments have been thwarted mainly by states favoured by the current federal system, while others that are marginalised in the creation of states have been demanding for more states and local governments to increase their chances of receiving more allocation.

The national conference of 2014 recommended the creation of 18 more states, which will bring the total states in the federation to 54, in addition to a certain number of local governments.

Creation of more states and local governments are unlikely because the existing states are not viable and most of them cannot function with the monthly allocation from the federation account.

But if the present structures are retained, the unfairness and inequality in the allocation of money to the federating units will continue.

A new kind of agitation for the restructuring of the federation is now gathering momentum with the persistent call for Nigeria to return to fiscal federalism.

A true federal system will enable states or regions to have more autonomy and control their resources, rather than depending on the monthly allocation from the federation account. This will be similar to the political arrangement before the creation of states and local governments when Nigeria had only four regions.

The promoters of restructuring have not clearly articulated whether the country will return to a regional system with the present six geo-political zones or maintain the current 36 states where each state will have more autonomy and resource control.

But the argument for restructuring is sensible and it is pivotal for development in the country. There will not be the need for the monthly allocation from the federation account and no state will be short-changed in the sharing of the allocation. Each state will develop according to its own pace.

With this restructured Nigeria, those in Udi LGA in Enugu State will no longer wonder why Bagudo LGA in Kebbi State will be getting more money from the federation account despite Udi having more population.

And the only way Bagudo will be getting more money than Udi in a restructured Nigeria is if its people work harder than those in Udi, rather than the currently unjust ‘feeding bottle’ federalism.