Revenue allocation must be on the basis of even progress and need

CONTINUED FROM LAST WEEK

Speech delivered by Chief Obafemi Awolowo as Federal Commissioner for Finance to the Conference of Finance Commissioners of the Federation in Kano on 23rd February, 1970.

Before I leave this topic, there is a popular illusion about industrialisation which I would like us to recognise with a view to discarding it. Any time public discussion turns on the question of reducing or abolishing unemployment, there is a common tendency among all of us to regard industrialisation as the most effective (if not the only) means of achieving the desirable goal. But the reality of the situation is that, whilst industries, if properly planned, could only provide employment for a total of about 220,000 workers within the next twelve years or so, a properly planned agriculture can, by contrast, provide equally remunerative employment for at least 6,000,000 workers within the next five years. It is well to realise, before it is too late, that, for the next thirty years, manufacturing industries cannot cater for as many people as agriculture can, within the same period. It follows then that, if it is the ardent and burning desire of those of us now in the vanguard of public life in Nigeria to serve our age and, at least, the next generation, faithfully and fruitfully, our area of concentration, as between manufacturing and agriculture, must ipso facto be agriculture.

THE SIXTH IS RAPID DEVELOPMENT OF OUR SYSTEMS OF TRANSPORTATION. On the basis of the old Regions, there is one mile of road to less than two square miles of territory in the East, one mile to about three square miles in the West and Mid-West, and one mile to about 13 square miles in the North. Furthermore, the riverine areas of the East, West, Midwest, and Lagos have, up till now, received little or no attention at all in the matter of waterway development. The areas of heavy concentration in road and waterway development, from now on, are, therefore, clear beyond dispute. But only a nationally orientated revenue allocation system can correct the existing glaring imbalance in the regional development of our transportation systems.

For the avoidance of misunderstanding, I would like to stress that whilst the Northern and riverine areas of the country, for economic and social reasons which we do not need to go into here, lag very much behind in transportation development, and should therefore be given special attention henceforth, the crucial point must not be overlooked that the areas of convergence for most of our transportation activities in the country are those adjacent to the ports at Port Harcourt, Calabar, Sapele, Warri, Escravos, Lagos, and Apapa. It follows from this fact that the development of those roads, within the areas of the Midwestern, Eastern, Western, and Lagos regions, which give access to the ports, is of common concern to all the states in the Federation. For, any transportation deficiency in these areas is bound to constitute time-wasting, labour-wasting, and capital-wasting bottlenecks of the worst order.

THE SEVENTH IS PUTTING THE FEDERAL GOVERNMENT IN SUFFICIENT FUNDS TO ENABLE IT NOT ONLY TO PERFORM ITS ALLOTTED FUNCTIONS IN THE NATIONAL INTEREST, BUT ALSO TO COME READILY TO THE AID OF ANY STATE IN NEED. There is need for all the governments of the Federation to agree to pursue the six preceding objectives, and to make detailed and scientific plan for their implementation. Granting that this is done, it is believed that, unlike now, each State would be in a position to perform its functions effectively, and justify its existence to the people under its jurisdiction, without undue anxiety.

But if perchance, any State fell on an evil day, it should be the duty of the federal government, acting as the accredited agent of all the other states, to come to the aid of such a needy State, without delay. To this end, the federal government should be provided with enough funds. It will not be easy in the beginning to estimate how much this will be. But as time goes on, experience will guide us. It was the good fortune of those of us here gathered to keep the coffers and manage the finances of our great country, during the darkest and most trying period of its history. It may still being calculated – in thirty months of civil war, without in formulating the principles which will, in future, guide allocation of revenue among the Governments of the Federation. In any case, it is the duty of every citizen of this country, who has any worthwhile opinion to offer on this vital but knotty problem, to do so with the sole desire of creating a new Nigeria which will be worthy of the sacrifices which its loyal citizens had made of late, and which will incline all erring citizens to repent their past misdoings, as well as refrain from falling into the same error in the future. It is for all these reasons that I have deliberately chosen this opportunity, which may well be the last we have before the next exercise in revenue allocation begins, to stimulate your thoughts on this very important issue.

The objectives which I have outlined to you are very lofty. For Nigeria, they have to be. An underdeveloped nation which could afford to spend well over £300m – the figures are still being calculated – in thirty months of civil war, without borrowing a penny from abroad, without buying a single item of military equipment on credit from anyone, without receiving a gift of any kind from abroad, and without being economically weakened and prostrate in the process, can do practically anything if it makes up its mind to do it and plans well for it accordingly.

CONTINUES NEXT WEEK

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