One of the biggest challenges facing Nigeria’s federal structure is the overdependence of states on the Federation Account Allocation Committee (FAAC). This monthly sharing of oil revenues has created a dangerous cycle where most governors rely on Abuja for survival, instead of driving growth within their own states.
Prince Adelaja Adeoye captured this truth bluntly: “As an elected governor in Nigeria, the first thing you must do is go full force driving investments, entrepreneurship, and revenue, to cut dependency on the FAAC, which an undemocratic President can use to hold you by the balls. Look at Osun State for instance!”
The Problem With FAAC Dependence
- Unstable Revenue: FAAC allocations fluctuate with global oil prices, leaving states vulnerable.
- Political Manipulation: Centralized revenue sharing gives the President and federal government undue influence over state governors.
- Weak Development Drive: States become lazy, waiting for handouts rather than driving internal growth.
The Path Forward: Investments and Entrepreneurship
If Nigerian governors want to truly empower their states, they must build economies that can stand on their own. Here’s how:
- Attract Private Investments – Governors should create investor-friendly policies, reduce bureaucracy, and improve security to bring in capital.
- Promote Entrepreneurship – By supporting local businesses and SMEs, states can generate jobs and diversify income.
- Boost Agriculture and Industry – Nigeria’s states are blessed with unique resources. Instead of importing food and goods, governors should invest in local production.
- Leverage Technology – Tech hubs, innovation centers, and digital skills can generate revenue outside oil and federal allocations.
Lessons from Osun State
Osun State’s financial struggles highlight the danger of depending too heavily on FAAC. Without aggressive local revenue generation, states will always be financially weak and politically vulnerable.
Conclusion
True federalism thrives when states are strong, self-sufficient, and innovative. Nigerian governors must break the FAAC addiction by driving investments, entrepreneurship, and internally generated revenue (IGR). Only then will they protect their states from political manipulation and ensure sustainable growth.
