Nigeria’s House of Representatives Proposes Creation of 31 New States Amid Fiscal Concerns

In a controversial legislative move, Nigeria’s House of Representatives Committee on Constitution Review has recommended the creation of 31 new states across the country. If implemented, the proposal would increase the number of states from 36 to 67, a significant restructuring of Nigeria’s federal system. Deputy Speaker Benjamin Kalu, chair of the review committee, presented the report at a plenary session on Thursday, stirring both excitement and concern across the nation.

The recommendation is seen as a response to long-standing agitation for greater representation and regional autonomy. However, economists and constitutional experts have cautioned that the creation of additional states will come with immense fiscal and administrative costs that could exacerbate Nigeria’s financial woes.

Proposed New States by Geopolitical Zone

The full list of proposed states is as follows:

North Central:

• Benue Ala State (from Benue State)
• Okun State (from Kogi State)
• Okura State (from Kogi State)
• Confluence State (from Kogi State)
• Apa-Agba State (from Benue South Senatorial District)
• Apa State (from Benue State)
• Federal Capital Territory, Abuja, as a state

North East:

• Amana State (from Adamawa State)
• Katagum State (from Bauchi State)
• Savannah State (from Borno State)
• Muri State (from Taraba State)

North West:

• New Kaduna State (from Kaduna State)
• Gurara State (from Kaduna State)
• Tiga State (from Kano State)
• Kainji State (from Kebbi State)
• Ghari State (from Kano State)

South East:

• Etiti State
• Adada State (from Enugu State)
• Urashi State
• Orlu State (from Imo State)
• Aba State (from Abia State)

South South:

• Ogoja State (from Cross River State)
• Warri State (from Delta State)
• Bori State (from Rivers State)
• Obolo State (from Rivers and Akwa Ibom States)

South West:

• Toru-Ebe State (from Delta, Edo, and Ondo States)
• Ibadan State (from Oyo State)
• Lagoon State (from Lagos and Ogun States)
• Ijebu State (from Ogun State)
• Oke-Ogun and Ife-Ijesha States (from Ogun, Oyo, and Osun States)

Fiscal Implications: More States, More Costs

Economists have raised red flags over the financial sustainability of such a large increase in administrative units. Nigeria’s existing fiscal challenges, particularly its dependence on federal allocations to support states with limited internally generated revenue, would be worsened by the establishment of new states. The creation of additional executive, legislative, and judicial structures, along with extensive bureaucracies, would significantly increase recurrent expenditures.

Revenue Allocation Challenges

Nigeria’s revenue-sharing system already faces substantial pressure due to horizontal imbalances that create disparities in resource distribution among states. Many states rely heavily on federal transfers to sustain basic operations. The addition of 31 new states could aggravate these imbalances, leading to further fiscal strain at both state and federal levels.

Fiscal analysts suggest that the existing revenue-sharing formula is inadequate to meet the needs of such a restructured federation. Without reforms to improve revenue allocation, newly created states may struggle to maintain financial stability.

Experts Call for Reforms Before Expansion

To mitigate the potential fiscal challenges, experts have outlined a series of recommendations:

1. Economic Viability Assessment: Conduct in-depth studies to ensure any new state can generate enough revenue to sustain itself without excessive reliance on federal allocations.
2. Revenue Allocation Reform: Adjust the revenue-sharing formula to reduce disparities and promote equitable distribution of resources.
3. Promotion of Fiscal Discipline: Enhance internally generated revenues across all states through economic diversification and stricter financial management.
4. Clarification of Responsibilities: Clearly define roles and responsibilities among federal, state, and local governments to prevent inefficiencies and duplication of functions.

A Long Road Ahead for Constitutional Amendments

The process of creating new states is governed by stringent constitutional requirements under Section 8 of the 1999 Constitution. These requirements include the approval of a two-thirds majority in both chambers of the National Assembly, endorsements from state legislatures and local governments, and the successful completion of referendums. Political analysts predict that achieving consensus will be difficult, given the competing interests at play.

The debate over state creation is expected to intensify as lawmakers, governors, and civil society groups deliberate on the economic and political ramifications. This proposal, if enacted, would mark one of the most significant changes to Nigeria’s political structure in nearly three decades.

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