AN ASSESSMENT OF FEDERALISM AND RESOURCE CONTROL IN NIGERIA’S FOURTH REPUBLIC: A CASE STUDY OF THE OBASANJO ADMINISTRATION

CHAPTER ONE INTRODUCTION 1.1 Background to the Study The issues of federalism and resource control have remained highly relevant in Nigeria’s political landscape, especially since the inception of the Fourth Republic in 1999. Federalism in the Nigerian context involves the distribution of powers and resources between the central government and constituent states, with the intention of promoting national unity while preserving regional independence. Resource control involves the rights to possess, manage, and distribute natural resources within the federation. This issue is particularly sensitive due to Nigeria’s heavy reliance on oil revenues, primarily sourced from the Niger Delta. Nigeria’s federal structure, established at independence in 1960, considered the country's ethnic, religious, and cultural diversity, which exists across different geographic zones with unequal resource distribution. The evolution of federalism has been shaped by key historical developments, including military coups, the Nigerian Civil War (1967–1970), and the transition to civilian rule. The 1999 re-introduction of democracy ushered in the Fourth Republic and brought with it a new constitutional order aimed at resolving long-standing grievances and creating a more balanced relationship between regional autonomy and national cohesion (Adeleye, 2019). During this democratic era, significant efforts were made to redefine the roles of the federal and state governments, particularly regarding revenue allocation and resource governance. The return to democratic governance marked a shift in Nigeria’s federal arrangement and highlighted the need to address persistent concerns about equitable resource sharing and fiscal federalism. The 1999 Constitution incorporated revenue sharing formulas to allocate resources among federal, state, and local governments (Akindele, 2017). Nonetheless, debates over resource control persisted, especially regarding oil exploitation in the Niger Delta region. This area, rich in petroleum resources, has remained central to debates around control and distribution. Communities in the Niger Delta continue to demand increased autonomy and control over their natural resources, often citing environmental degradation and socio-economic marginalization (Obi, 2018). Numerous political and legal initiatives have been introduced to address these issues, leading to constitutional amendments and court decisions meant to clarify resource ownership and revenue sharing principles (Ukiwo, 2020). Discussions about federalism and resource governance are deeply intertwined with Nigeria’s ethnic and regional dynamics, often resulting in political disputes and obstacles to national unity. Issues such as corruption, mismanagement, and inefficient revenue allocation continue to hinder effective resource governance and national development (Ikelegbe, 2016). These challenges also have broad socio-economic implications that negatively impact sustainable development and the welfare of people in resource-rich areas. Thus, this study seeks to critically examine federalism and resource control during Nigeria's Fourth Republic, focusing specifically on the administration of President Olusegun Obasanjo. 1.2 Statement of the Problem Like most post-colonial African nations, Nigeria is a political creation influenced by colonial rule. Understanding its administrative and political systems is crucial, especially considering the complexities of governing such a diverse nation with numerous ethnic and linguistic groups. Nigeria has experienced cycles of military and civilian rule, each affecting the trajectory of resource management and fiscal federalism (Adeleye, 2019). However, issues surrounding resource management remain contentious, primarily due to ambiguity in constitutional provisions and legal guidelines on ownership and revenue sharing. This lack of clarity often results in prolonged legal cases and political disagreements (Ukiwo, 2020). Although the judiciary has made efforts to clarify these concerns, implementation and enforcement remain problematic. Another layer of complexity arises from the interplay between federalism, resource control, and the country’s ethnic and regional politics. This often exacerbates political tension and challenges efforts at achieving national integration (Ikelegbe, 2016). Disparities in resource allocation have fostered perceptions of inequality and exclusion among various groups. Consequently, it is essential to investigate the dynamics of federalism and resource control during Nigeria’s Fourth Republic, using President Obasanjo’s administration as a case study. 1.3 Research Questions The following questions guide this study: i. What was the impact of federalism on resource allocation during President Obasanjo’s administration? ii. How did President Obasanjo's resource control policies affect intergovernmental relations and cooperation between federal and state governments during the Fourth Republic? iii. What were the economic implications of resource control policies on Nigeria’s national development under President Obasanjo? iv. What challenges did the Obasanjo administration face in implementing resource control policies at the federal level? 1.4 Objectives of the Study The primary objective of this study is to explore the issue of federalism and resource control in Nigeria’s Fourth Republic, focusing on the administration of President Obasanjo. The specific objectives are: i. To examine the impact of federalism on resource allocation during the Obasanjo administration. ii. To assess the effect of Obasanjo's resource control policies on intergovernmental relations and federal-state cooperation. iii. To evaluate the economic consequences of these policies on Nigeria’s national development. iv. To identify the challenges faced by the Obasanjo government in executing resource control policies at the federal level. 1.5 Research Hypothesis The study is guided by the following hypotheses: H₀ (Null Hypothesis): Centralized control of resources by the federal government does not significantly affect regional tensions in Nigeria. H₁ (Alternative Hypothesis): Centralized control of resources by the federal government significantly affects regional tensions in Nigeria. 1.6 Scope of the Study This research focuses on federalism and resource control within the framework of Nigeria’s Fourth Republic, with specific emphasis on President Obasanjo’s tenure. Empirical emphasis is placed on analyzing the impact of federalism on resource allocation, evaluating the effects of resource control policies on intergovernmental dynamics, examining economic outcomes on national development, and exploring the administrative challenges encountered during implementation. 1.7 Significance of the Study This study is relevant to the Nigerian government and stakeholders involved in resource management. It offers insights into the complexities of federalism and resource control, particularly under the Obasanjo administration. By evaluating both successes and shortcomings of past policies, it provides valuable lessons for future policymaking in Nigeria’s diverse and resource-rich landscape. Additionally, the study is significant for understanding the evolution of Nigeria’s federal structure and the struggles for dominance among different regions. It aims to offer practical solutions to prevailing issues. Academically, it contributes to the growing body of literature on federalism, governance, and resource management in Nigeria. 1.8 Research Methodology The methodology explains the approaches and tools used in conducting the study. This research adopts a historical and descriptive method of inquiry. Data will be gathered primarily through secondary sources, including books, journals, magazines, internet materials, as well as national and international conference proceedings, both published and unpublished. 1.9 Definitions/Clarification of Terms Federalism: A system of governance where authority is constitutionally shared between a central government and regional governments. Resource Control: The process of managing, owning, and distributing natural resources within a federal structure. Fiscal Federalism: The financial aspects of federalism, focusing on how revenues are generated, shared, and spent across levels of government. Constitutionalism: Adherence to the principles and rules defined in a nation’s constitution, especially regarding governance and the rule of law.