Posted Wed, Oct 30, 2024 11:59 AM

Strengthening State Assemblies for Sustainable Business Reforms in Nigeria

Strengthening State Assemblies for Sustainable Business Reforms in Nigeria

Introduction

Nigeria operates under a federal system of government, structured into three tiers: the Federal, State, and Local Governments, as established by the 1999 Constitution (as amended)[1]. This system was designed to address the country’s vast and diverse population of the country, making it necessary to adopt a governance framework that reaches the grassroots level.

The Constitution clearly delineates the powers assigned to each level to ensure that each tier of government fulfils its purpose without conflicting with others. The Federal Government has exclusive control over matters listed in the Exclusive Legislative List, while both the Federal and State Governments share authority over matters contained in the Concurrent Legislative List. For issues not covered in either list, often referred to as residual items, legislative authority is vested in the State Legislature, as affirmed by various judicial rulings.[2]

At the federal level, the legislature is bicameral, comprising the Senate and the House of Representatives. In contrast, State Legislatures operate under a unicameral system, consisting solely of the State House of Assembly. These State Assemblies are tasked with law-making and providing oversight of the State Executive's actions. However, despite their critical role in governance, many State Assemblies have not fully lived up to their potential due to a combination of factors.

In this article, I will explore the importance of strengthening State Legislatures as a catalyst for economic advancement in Nigeria. I will also examine the barriers currently hindering the effectiveness of these legislative bodies and propose strategies for overcoming these challenges to promote sustainable growth across the country.

The Critical Role of State Assemblies in Governance and Economic Development

The role of nation and state institutions in African prosperity is crucial as it provides the framework and mechanisms for economic growth, development, and social stability. Strong institutions are necessary for ensuring the rule of law, enforcing property rights, and promoting accountability and transparency in governance. These institutions create an enabling environment for businesses to thrive, attract investments, and foster domestic economic activities. Additionally, effective national and state institutions can enhance public service delivery, promote social cohesion, and reduce inequalities, thereby fostering inclusive growth and development.[3]

State Assemblies, as the legislative arm of government at the subnational level, play pivotal roles in shaping the socio-economic landscape of their regions. Through their legislative and oversight functions, State Assemblies have the potential to drive sustainable economic growth, enhance transparency, and ensure accountability within the state’s governance structure.

The primary function of State Assemblies is to make laws on items contained under the concurrent legislative list as contained in the first column in Part II of the Second Schedule to the 1999 Constitution of the Federal Republic of Nigeria as Amended. This involves the passage of bills that, once signed into law, regulate various aspects of life within the state. These laws have the potential to create an enabling environment for businesses to thrive, establish legal frameworks that protect investments, and promote socio-economic development.

State Assemblies craft laws that address specific local needs and challenges, such as infrastructure development, education, and collection of taxes and because of the autonomy of each state, State Assemblies can tailor legislation to meet the unique economic conditions of their state. This flexibility allows states to address their distinct developmental goals and attract investment by creating business-friendly environments.

Over the years, we have seen states take legislative actions to improve the ease of doing business in their states. An example of this is the passing of various state investment promotion laws that establish the State Investment Promotion Council to drive investments to the state and improve the internally generated revenue of those states.

Another vital role of the state assemblies is their oversight role on the state executive council; in most countries, including Nigeria, the legislature is constitutionally mandated as the institution through which governments are held accountable to the electorate. Such oversight functions include scrutinising and authorising government revenues and expenditures and ensuring that the budget is properly implemented. The constitutional power to approve budgetary appropriation gives the legislature political influence to shape governance, and possibly carry out reforms that lead to national development[4].

Oversight ensures that the laws passed are implemented effectively, public funds are used appropriately, and government policies are aligned with the overall development goals of the state. Through committees, public hearings, and investigative reports, State Assemblies can hold the state executive accountable, preventing corruption, abuse of power, and mismanagement of resources.

Oversight is particularly crucial in fostering transparency within government institutions. When State Assemblies perform their oversight function effectively, they help create a governance culture that values accountability and discourages impunity. This, in turn, builds public trust in government institutions, making the state more attractive to investors who seek stable, transparent, and predictable environments for business operations.

Current Challenges Facing State Assemblies and Strategies for Strengthening the State Assemblies

Lack of Financial Autonomy

One of the key challenges facing State Assemblies in Nigeria is their financial dependence on the executive branch. This financial dependence often hampers the effectiveness of these assemblies, as they lack the autonomy to initiate and sustain independent legislative activities. In many states, budget allocations for the legislature are controlled by the executive, making it difficult for the assemblies to operate without influence or pressure from the state governors.

This lack of financial autonomy undermines the independence of the legislative process, allowing the executive branch to dictate legislative priorities and stifle oversight functions. To truly strengthen the legislative arm of government, it is critical to advocate for financial autonomy. With independent funding, State Assemblies will be better equipped to function efficiently, carry out their legislative and oversight duties, and contribute more meaningfully to state development. Despite efforts made under the 4th and 5th Alteration to the 1999 Constitution, there Is still yet to be a full implementation of the financial autonomy of the state assemblies and this has made it difficult for them to be truly independent.

Capacity and Expertise

Because of the political nature of the office, another significant challenge facing State Assemblies is the limited capacity and expertise among many of their members. Legislators often need more technical knowledge and experience to draft effective laws, engage in meaningful debates, and perform their oversight functions efficiently. The legislative process requires specialised skills in areas like policy analysis, budgeting, law-making, and sector-specific knowledge, but many Assembly members come into office without adequate expertise, especially considering that the academic qualification for running for the office of a member of the House of Assembly is at least a school certificate level or its equivalent[5].

This knowledge gap can lead to an inability to influence the state’s socio-economic direction. To address this, continuous capacity-building programmes are essential. These programmes should focus on enhancing members' legislative, oversight, and policy analysis skills. Partnerships with academic institutions, civil society organisations, and international bodies could provide specialised training to Assembly members, ensuring they are better equipped to meet the challenges of their roles. An increase in the qualification requirement of the office to at least an undergraduate degree can also help improve the expertise of the Assemblies.

Political Influence and Partisanship

Political influence and partisanship often impact the decision-making processes within State Assemblies. In many cases, the legislators could prioritise political allegiances or personal interests over the needs of the state. This partisanship can lead to legislative gridlock, poor governance, and a failure to pass laws that promote economic growth and public welfare. Furthermore, the concentration of power within political parties often results in state assemblies being reduced to rubber stamps for executive policies, eroding the checks and balances that are fundamental to democratic governance.

Reducing political interference in legislative processes is crucial for the integrity and effectiveness of State Assemblies. This can be done through the strict enforcement of codes of conduct and mechanisms to promote non-partisanship in legislative functions to help reduce undue influence and refocus the legislative agenda on the needs of the people.

Conclusion

Strengthening State Assemblies is crucial to fostering sustainable business reforms and economic development in Nigeria. Financial autonomy, continuous capacity building, and political neutrality are all critical strategies for achieving this goal. By addressing these challenges and adopting the proposed strategies, State Assemblies can become more effective in driving legislative reforms that improve the ease of doing business and contribute to overall state development.

Stakeholders, including policymakers, civil society, and the private sector, must work together to build stronger State Assemblies, ensuring that they are well-equipped to lead legislative reforms and promote accountability in governance.

[1] Constitution of the Federal Republic of Nigeria (1999, as amended). Part I

[2] Togun v. Oputa (No. 2) (2001), 16 NWLR Pt. 740, Page 597, at 644, A.G Federation v A.G Lagos State(2013) 16 NWLR(Part 1380) 249 SC.

[3] Lambert, E., & Deyganto, K. O. (2023). The role of nation and state institutions in Nigeria’s economy: An empirical review. Journal of Economics and Sustainable Development, 14(15), ISSN 2222-1700 (Paper), ISSN 2222-2855 (Online).

[4] Tom, E. J., & Attai, A. J. (2014). The legislature and national development: The Nigerian experience. Global Journal of Arts, Humanities and Social Sciences, 2(9), 63-78. European Centre for Research Training and Development UK. Retrieved from http://www.eajournals.org.

[5] Constitution of the Federal Republic of Nigeria (1999, as amended). S 106.

Khadijat Akewushola is the  Lead,  State Assemblies Business Environment Roundtable (SABER), Ernest Shonekan Centre