Should Tinubu Begin State Resource Control Reforms Now?

State resource control is a major debate in Nigeria’s federalism conversation. It would give states greater authority and revenue from resources within their borders, including oil, gas, solid minerals and possibly VAT. At present, the Federal Government retains broad control over key natural resources and shares revenue through FAAC. Supporters argue that stronger fiscal federalism would make states more productive and accountable. They say states could invest more directly in infrastructure, electricity and agriculture, while developing local resources such as lithium, gold and commercial farming. They also believe it could ease long-running tensions in oil- and mineral-producing communities. Critics warn that many states may lack the capacity to manage complex oil and mining operations. A transition could also widen the gap between resource-rich and poorer states unless the revenue-sharing formula is redesigned. Full resource control would require constitutional amendments and broad agreement among the National Assembly and state assemblies. A gradual approach could begin with solid minerals, higher derivation for producing states and clearer state participation in resource licences and joint ventures. What should come first: higher oil derivation, state control of solid minerals, or greater VAT autonomy?

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