The Anti-Corruption and Research-Based Data Initiative (ARDI) has called on President Bola Tinubu to urgently review and address longstanding imbalances in Nigeria’s federal policies, particularly the quota system, federal character principles, and derivation formulas. In a statement issued on Monday by ARDI’s Chairman, Board of Trustees, Ifeanyi Ozigbo, the group stressed the need for comprehensive reforms to ensure fairness, equity, and justice for all regions of the country.
ARDI highlighted the negative impact of these policies, which it claims have fostered inequality and hindered national progress. The organization argued that the quota system, federal character principles, and the current derivation formula have contributed to a growing divide between Nigeria’s North and South, with the policies favoring one region over the other.
“The Anti-Corruption and Research-Based Data Initiative is calling on President Bola Ahmed Tinubu to review existing inequitable policies such as the quota system, federal character principles, and the non-derivation sharing formula,” Ozigbo stated. “These policies have fostered inefficiency, encouraged laziness among governors, and hindered hard work, especially in the South.”
The group also raised concerns about the proposed tax reform bills, which it said could potentially reduce revenue from the Federation Account. It specifically pointed to the proposed VAT sharing formula, which appears to favor metropolitan cities and resource-rich regions, causing anxiety among Northern states about the potential impact on their revenue.
ARDI acknowledged grievances in the South regarding policies such as the quota system and federal character principles. The group argued that these policies often prioritize less qualified individuals from certain regions, sometimes at the expense of more qualified individuals from other areas. The promotion practices within the civil service were cited as a major example of such inequalities.
On the issue of derivation, ARDI criticized the current allocation formula, which it said unfairly limits oil-producing states to just 13 percent of derivation funds despite bearing the brunt of environmental degradation caused by oil extraction. The group proposed an increase in the derivation percentage to at least 60 percent to address these environmental concerns and promote a more equitable distribution of resources.
“Increasing the percentage of derivation funds will not only address the environmental devastation faced by oil-producing states but also ensure fairness in the revenue-sharing process,” ARDI stated.
The statement emphasized that all Nigerian states possess valuable natural resources and that a fair and comprehensive derivation formula would encourage innovation and efficient use of resources across the country.
ARDI concluded its statement by urging President Tinubu to prioritize consultations with all regions, especially the North and South, to foster healthy competition among the federating units. The group called for a fairer federation, one that respects and addresses the concerns of all regions, and urged the president to act swiftly to correct these systemic imbalances.
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