Renowned constitutional lawyer and former Nigerian Bar Association (NBA) president, Mr. Olisa Agbakoba (SAN), has sounded a serious warning to the Federal Government, saying that President Bola Tinubu’s economic reforms will not yield the desired results unless there is urgent political restructuring in Nigeria.
Agbakoba made this known in a recent detailed assessment titled, ‘Two Years Assessment of President Tinubu: The Political Governance Fundamental’. While commending the Tinubu administration for bold economic decisions like the removal of fuel subsidies and the deregulation of the foreign exchange market, he insisted that these reforms alone are not enough to transform Nigeria’s struggling economy.
According to the respected legal expert, the main problem lies in Nigeria’s over-centralised federal system, which he described as “90 per cent dysfunctional.” He explained that the country’s 36 states and 774 local governments rely heavily on the federal government for funding and direction, making them ineffective as engines of development.
“The local and state governments are largely ‘collection points’ for funds rather than active drivers of growth,” Agbakoba said. He stressed that a political system that is too centralised and bureaucratic suffocates economic participation and locks millions of Nigerians into informal, unproductive jobs.
Agbakoba warned, “Economic reforms operate within political systems. When those systems are fundamentally flawed, even the best policies deliver suboptimal results.”
He highlighted the plight of Nigeria’s informal sector, which employs the majority of the population but remains excluded from formal economic benefits due to weak governance and poor institutional support at local levels.
Focusing on agriculture, he criticised the federal government’s top-down approach to policymaking. “When policies are made in Abuja instead of the farming communities, they fail to account for local realities like climate, soil conditions, and access to markets,” Agbakoba explained. This disconnect, he said, prevents farmers—the backbone of Nigeria’s economy—from fully benefiting from government support.
To illustrate, Agbakoba pointed to countries like Spain, where decentralised governance allows regions and local governments to craft policies tailored to their unique economic strengths—such as olive oil and grape production. This model, he suggested, has driven local economic growth and could serve as an example for Nigeria.
While praising President Tinubu’s economic reforms as “necessary,” Agbakoba warned they are “insufficient” without broader political restructuring. He cautioned that the current approach risks widening inequality by benefiting only a small elite already embedded within the formal economy.
“We are building a 20-storey edifice on a cracked foundation,” he said. “Unless the governance foundation is fixed, Nigeria’s development agenda will remain stuck.”
Agbakoba described Nigeria’s political framework as a “capacity trap.” He explained that while the federal government is overwhelmed with responsibilities, state and local governments lack the power and resources to function effectively. This imbalance creates inefficiencies, excessive red tape, and discourages investments.
He called for a genuine restructuring of Nigeria’s governance system—a shift from what he termed the “unitary system disguised as federalism” to a true multilevel governance model. Each tier of government, he said, must have clear autonomy and responsibilities.
“Restructuring is not just a political issue—it is an economic imperative. Sustainable high-growth economies function through strong, active local governance. Nigeria cannot develop if only the federal level is working,” he noted.
Agbakoba urged empowering local governments to provide essential services, enforce contracts, and support business development. Doing so, he believes, will unlock the economic potential of millions currently excluded from formal opportunities.
He proposed a three-pronged approach to achieve this restructuring:
1. Executive orders to immediately devolve key responsibilities—such as driver’s licensing, local trade regulation, agricultural policies, and microfinance oversight—to states and local governments.
2. Legislative reforms to amend the constitution, creating distinct legislative lists for federal, state, and local governments, and ensuring fiscal federalism to empower subnational bodies financially.
3. Administrative restructuring so federal ministries focus on setting standards and policies while allowing states and local governments to handle implementation based on local priorities.
Agbakoba stressed that local governments must be constitutionally empowered to manage critical public services like education, healthcare, waste management, and market regulation—areas currently controlled by state governments.
Such reforms, he said, would help Nigeria develop multiple economic hubs across the country, reducing the excessive concentration of development in Abuja and a few major cities.
“The goal is to replace a system of rent-seeking and top-down control with one of broad-based economic participation and entrepreneurship,” he said. “When local governments function properly, when states are empowered, and when bureaucracies become facilitators rather than gatekeepers, Nigeria’s entrepreneurial energy will be unstoppable.”
Olisa Agbakoba ended with a warning to the Tinubu administration: “The government is at a critical crossroads and must embrace a paradigm shift in political governance. Without urgent restructuring, even the best economic reforms will fail to deliver.”
