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Let the Third Tier Breathe: Implications of the Supreme Court Verdict

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Bayo Onanuga

By Bayo Onanuga

The Supreme Court judgement on July 11, granting financial autonomy to the 774 local councils and recognising them as the third tier of Nigeria’s governance architecture, was truly historic. It was perhaps the most remarkable judgement ever delivered by the apex court in recent times, as it used its power to interpret the law to give a different meaning to Section 162 of the Constitution.

Since 1999, governors have used this section to withhold and tamper with the funds federally allocated to the councils, using a joint account that has proven to be a honeypot of abuse.

 

Last Thursday, the Supreme Court described the payment of the allocations to the account as gross misconduct and scolded the governors for dissolving democratically elected councils and setting up caretaker committees.

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The court ruled that caretaker committees are illegal and that councils run by them should not receive the federal allocation.

 

Henceforth, the court ruled that the allocations should go directly to the accounts of the 774 local councils.

 

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Justice Emmanuel Agim, who read the lead judgment, said Nigeria runs a three-tier governance structure, where no one tier is subject to the whims and caprices of the other. He criticised the governors and the state assemblies for almost allowing the councils to go into extinction with their treatment of them.

 

The judgment was generally well received by Nigerians. According to reports, the verdict ignited jubilation by workers in some local councils as they sang the praises of the Tinubu administration.

 

However, some Nigerians have criticised it as an ‘assault’ on Nigeria’s Federalism as it has rewritten Section 162. My simple response to this school of thought is: Must we allow the law to stand still while the local councils die? The Supreme Court also said as much: Since the governors were using the section to perpetuate unconstitutional acts, the court must ensure that the constitution is not applied in a manner that supports its destruction.

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In acknowledging the verdict’s import, former vice-president Atiku Abubakar described it as a win for the people. In a post on X, Atiku wrote: “The court’s ruling is a step in the right direction and a major corrective action in greasing the wheels of national development across the country… The court’s verdict is in tandem with the core functions of the Supreme Court as an arbitration court between and among governments.”

 

President Bola Tinubu, whose government instituted the case, welcomed the Supreme Court’s decision, affirming the spirit, intent, and purpose of the Constitution regarding the statutory rights of local governments.

 

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“My administration instituted this suit because of our unwavering belief that our people must have relief, and today’s judgement will ensure that only those local officials elected by the people will control the resources of the people. This judgement is a resounding affirmation that we can use legitimate means of redress to restructure our country and economy to make Nigeria a better place to live in and a fairer society for all of our people.”

 

President Tinubu noted that the provision of some essential amenities and public goods, such as the construction and maintenance of roads, streets, street lighting, drains, parks, gardens, open spaces, and other residual responsibilities, including community security, has been abandoned owing to the emasculation of local governments.

 

He said the court’s decision to grant financial autonomy to the councils and restate other constitutional principles reinforced the effort to enhance Nigeria’s true federal fabric for the development of the entire nation.

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President Tinubu and his administration deserved the praise. President Tinubu has earned double appreciation as a defender of the local councils. As governor of Lagos, he sought the intervention of the same Supreme Court to establish the right of states to create councils in compliance with the provisions of the constitution. In a reverse role, as president, he has succeeded in seeking another intervention of the apex court to establish the right of the councils to survive and perform the role envisaged by the constitution.

 

Former President Muhammadu Buhari had sought to rescue the councils from the governors’ vice grip by using Executive Order 10, which he signed on May 22, 2020, to direct funds straight to the councils, the state legislature, and the judiciary. But the governors challenged his authority in a case filed at the Supreme Court. In a split judgment in 2022, the Supreme Court said President Buhari overreached his powers.

 

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In his lamentation, while signing the executive order, President Buhari said: “If the money from the Federation Account to the state is about N100 million, N50 million will be sent to the chairman (of local government), but he (the chairman) will sign that he received N100 million. The governor will pocket the balance and share it with whoever he wants to share it with. Then, the chairman of the local government must pay salaries. Go to hell with development. When he pays salaries, he will put the balance in his pocket. This is what’s happening in Nigeria.”

 

President Tinubu, his successor, sought to combat the problem constitutionally by suing the governors.

 

The Attorney General and Justice Minister, Lateef Fagbemi, approached the Supreme Court in May, seeking to compel the governors of the 36 federating states to grant full autonomy to local governments in their domains in a suit marked SC/CV/343/2024. The suit, anchored on 27 grounds, accused the state governors of gross misconduct and abuse of power. He prayed that the Supreme Court would make an order stating that funds standing to the credit of local governments from the Federation Account should be paid directly to the local governments rather than through the state governments.

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The justice minister also requested an order restraining governors, their agents, and privies from receiving, spending, or tampering with funds released from the Federation Account for the benefit of local governments when no democratically elected local government system is in place in the states.

 

The court granted his prayers in the landmark ruling of July 11.

 

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President Tinubu has always been concerned about the lack of governance at the grassroots. He believes that without fixing the problems at the councils, the objective of developing the country and spreading prosperity to the 200 million people will never be achieved. After all, the councils where the 200 million people live have been financially handicapped by the governors. He made the point clearly when he met in Abuja with the leaders of the Arewa Consultative Forum on May 30, about the same period when the Justice Minister approached the Supreme Court for the correct interpretation of Section 162.

 

President Tinubu, responding to the ACF’s demands for more roles by the Federal Government, urged the leaders to summon the governors. He said Nigeria, as a constitutional democracy, has not allowed the councils where we all live to flourish, citing the absurdity of politicians going to the locals for votes only to abandon them and leave for the capitals and Abuja after winning their votes.

 

As Nigerians celebrate the historic judgment, it is clear that some work still needs to be done to bring life back to the councils. One issue being raised is how to ensure that the council elections are truly competitive and not predetermined by the governors and the state independent electoral commissions. To solve this, some Nigerians have urged the National Assembly to pass a law that will require only the central Independent National Electoral Commission to conduct council elections.

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The other problematic issue is the fear that governors will not allow the Supreme Court ruling to affect their domains, as they can always order the councils to send the money received from the Federal Accounts Allocation Committee back to the state coffers. Again, a solution to this possible abuse has been proffered. The EFCC, ICPC, and NFIU should prevent this by monitoring the councils’ accounts. While the governors enjoy immunity to cover their actions, the council chairmen and councillors do not have such cover as they can be arrested, tried, and jailed. The threat of arrest and prosecution can deter local political actors from collaborating with the governors.

 

In conclusion, while Nigerians await the full implementation of the Supreme Court verdict, one needs to appeal to the powerful governors to allow the councils to breathe. It is in the interest of the states to allow the blossoming of the third tier of government as it was before 1999.

 

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Here are some of the benefits that the states should not let slip away:

First, local governments will now have more control over their finances, which could lead to improved service delivery and governance at the grassroots level.

 

Second, with greater financial autonomy, local governments can provide better services to their constituents, such as healthcare, education, and infrastructure development. This will reduce the pressure on the state government from the people expecting such minimal provisions.

 

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Third, the judgment could lead to greater accountability and transparency in local government administration.

 

As President Tinubu remarked after the landmark ruling, “The onus is now on local council leaders to ensure that the broad spectrum of Nigerians living at that level are satisfied that they are benefiting from people-oriented service delivery.

 

“The Renewed Hope Agenda is about the people of this country, at all levels, irrespective of faith, tribe, gender, political affiliation, or any other artificial line they say exists between us. This country belongs to all of us. By this judgment, our people, especially the poor, can hold their local leaders accountable for their actions and inactions. What is sent to local government accounts will be known, and services must now be provided without excuses.”.

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-Onanuga is Special Adviser on Information and Strategy to President Tinubu

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Celebrating Oyebanji, the People’s Governor at 57

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By Olayinka Oyebode

Two major events that happened at two different locations in Ekiti State earlier in the month, again laid credence to the primacy of capacity, character and compassion in the leadership style of Ekiti State Governor, Biodun Abayomi Oyebanji. First was the event at Oke Ako Ekiti, in the north senatorial district, which featured the distribution of cheques totalling N160 million as compensation to land owners whose land were acquired for the commercial farming scheme for young farmers and the flag- off of some newly purchased tractors and other equipment. The second event which came barely 48 hours after was the distribution of cheques totalling N140 million to some young farmers as payment for the farm produce off-taken from them across the six farm clusters.

The gist here is that the chains of activities- the land acquisition, the compensation and the utilisation of the acquired land, the first harvest and the off-taking of the harvested crops as well as the purchase of tractors and other equipment required for the tractorisation policy of the government was completed within the space of six months of the introduction of the scheme, code-named “Bring Back the Youth Into Agriculture” a programme run in partnership with a private investor.

Four weeks earlier, in a move aimed at achieving energy independence and ensuring that his administration’s huge investments in power infrastructure achieve the desired result, Governor Oyebanji had granted operational licence to 14 investors which included three distribution companies, four power generating companies, two mini-grid generation companies and five meter asset providers.

The pace-setting and strategic move is to enhance power generation, ensure efficient distribution and provide reliable metering for residents. The goal is to move the state from the 20-25 mw it gets from the national grid (which falls short of the estimated requirement of 120mw) and move up to 130mw through a robust state grid, reducing dependency on the national supply and promoting sustainable. locally managed energy solutions. Again, the initiative, which aligns with the 2023 Electricity Act, was achieved within the space of a year that also witnessed a massive power upgrade and re-connection of many communities that hitherto were without power supply to the national grid.

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Remarkably, Oyebanji is quite intentional about putting smiles on the faces of the people. Moved by the plight of Ekiti pensioners in the face of accumulated gratuities inherited from previous administration, the Governor, had in the last two months paid a total 4.5 billion naira to offset part of the outstanding gratuities. This is outside the regular monthly payment of gratuities. Aside supporting and equipping workers in the state to ensure a more excellent service delivery, the Governor put extra smiles on the faces of Ekiti teachers earlier in the year, when he directed that primary school teachers with degree qualifications should enjoy career progression to level 16 like others. This is in addition to extending car and housing loans to them, thereby bringing them out of an age-long policy that had deprived them.

The community of people with disabilities have also found a champion in Governor Oyebanji, who through his inclusion policy has not only created a government department headed by a cabinet –ranked officials and saddled with their welfare. This has resulted in a greater attention for the welfare and human capital development of PWD, with attendant huge investment in the upgrade of the state special schools and establishment of a trauma centre for children with disabilities.

These, and several other cutting-edge initiatives that authenticate the welfarist approach of his government and underscores his compassionate nature as a leader as well as his sheer determination to create economic opportunities for the people, are what stand Governor Oyebanji out as a true leader of the people, who is happy only when the people are happy and progressing.

And because the people know that “BAO” or “Talk- and- do Governor”, as he is fondly called, is passionate about their welfare and wellbeing, they have chosen to celebrate him not only on his birthday, but on daily basis and with the same level of energy and dexterity with which he serves them.

As the renowned American author and speaker, John C. Maxwell puts it, a leader is someone who knows the way, goes the way and shows the way”. Governor Oyebanji has a clear vision, which he communicates quite eloquently with corresponding actions. He walks the talk and he helps the people achieve their vision and purpose as well. This, many people believe, had provoked critical stakeholders in the state, including all former governors, to endorse him for a second term even before he marked his second anniversary in office.

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Those who live by their strength may readily provide an answer to the question bordering on how they surmount obstacles and stay on top of their game. But those who live by the power of the Almighty God and the attendant grace can’t make such boast. Rather, they work hard, they work hand-in- hand with others, and they let God be God over everything- directing each step all the way through the paths that eventually yield boundless rewards. This is the story of the Omoluabi Governor of Ekiti State, Biodun Abayomi Oyebanji as he clocks fifty-seven years old today.

Those who have followed Oyebanji’s trajectory right from his undergraduate days, know that his political philosophy is built around the social democratic principle of lifting and supporting the weak and the vulnerable in society as well as the biblical injunction of love thy neighbour as yourself. An apostle of soft leadership, BAO’s genuine concerns include how transformational leadership can replace transactional politics; how to build strong institutions that will support growth and development; how to make government wear human face; how to get every citizen to contribute to state and nation building, each utilising his talent, time, platform and resources; and what mechanism should be put in place for genuine and effective empowerment of the citizens towards the attainment of shared prosperity for all.

Governor Oyebanji is disarmingly humble. He proudly wears humility like a garment. He possesses an insatiable appetite for championing good causes. In a recent interviews with state correspondents, he told them the secret of his calmness. According to him, he has committed the state into God’s hands, hence he is not under any pressure. Those who have come in contact with him, and, indeed a vast majority of Ekiti people believe humility remains his greatest asset, and gratitude the most potent weapon in his arsenal. This year alone, he has caused the office of the Secretary to the State Government to issue letters of commendation to no fewer than three members of his cabinet, as well as the chairman of the State Internal Revenue Service, appreciating them on behalf of the government and people of the state for their superlative performances.

As a change agent, BAO believes a leader must live in the hearts of the people by serving them diligently and faithfully, knowing he is accountable to the people and would give account of his stewardship to God one day. He believes trust is a public good without which no great thing can be achieved collectively. Hence, he believes trust has to be earned. As a leader, he embodies creativity, character, competence, and compassion with passion for excellence.

Born on December 21, 1967, in Ikogosi-Ekiti, Oyebanji had his early education in his home state. He bagged a Bachelor of Science degree in Political Science from the Ondo State University (now Ekiti State University, Ado-Ekiti) in 1989 and Masters’ degree in Political Science (International Relations and Strategic Studies), from the University of Ibadan in 1992.
He started his career as a Lecturer at the Department of Political Science, Ondo State University, Ado-Ekiti, between 1993 – 1997 . He later proceeded to work as Manager, Treasury, and Financial Services at the defunct Omega Bank Plc (now Heritage Bank) till May 1999, when he commenced an illustrious career in politics and governance.

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Since embracing public service in 1999, Oyebanji has served in various capacities with different administrations. He also served as Secretary to Ekiti State Government between October 2018 to December 2021, when he resigned his appointment to join the governorship race, which he won on the platform of the All Progressives Congress (APC) in June 22, 2022. He was inaugurated Governor of Ekiti State on October 16, 2022.

A devout Christian, Oyebanji sees his career in politics and governance as a divine calling. This philosophy remains his guiding light as he continues to serve God and country diligently as a loyal party man and conscientious public servant.

In recognition of his inspirational life journey, BAO has received many awards and recognitions. He was named Governor of the Year (2023) by Daily Independent Newspaper and Marketing Edge Magazine. He is also a recipient of the Ekiti Exceptional Achievers (MEEA) Award, granted in recognition of his contributions to the creation of Ekiti State as Secretary, State Creation Committee and Secretary, Ekiti State Development Fund.

Oyebanji is married to Dr Olayemi Oyebanji, an Associate Professor of Educational Management, University of Ibadan. They are blessed with three children.

As he celebrates another year of impact, Oyebanji remains an inspiration to both existing and aspiring leaders and a symbol of boundless grace. At 57, his legacy of integrity, innovation, loyalty, diligence and generosity of spirit continues to shape political narratives and inspire generations to come.

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• Olayinka Oyebode is Special Adviser (Media) to the Governor, Ekiti State

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10 ways the Tax Bills will make states richer

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By Temitope Ajayi

Human beings naturally resist change. When comfortable where we are, we find it extremely difficult to embrace an uncharted path or seek greater glory. Those who are risk averse often don’t want to venture out to embrace unfamiliar territories no matter how tempting the possible reward may appear. We should not, however, be so imprisoned by the fear of the unknown not to explore new possibilities because we find our present circumstances satisfying enough.

Since the public debate around the Tax Reform Bills started, the strongest push back against it has come largely from the north. Borno State Governor, Professor Babagana Zulum has become the face of the resistance for the reasons he has pushed forward, even when some of them didn’t speak to the facts and provisions of the bills.

If Governor Zulum and other voices of resistance who think the states will be shortchanged had actually taken time to examine the four executive Bills, they will see how progressive and transformative the Bills are. They will also discern the thought behind them which is primarily to make both the Federal and sub-nationals fiscally stronger and buoyant.

In his public presentations and the most recent being the Channels TV Town Hall moderated by Seun Okinbaloye Monday evening, Chairman of Presidential Committee on Tax and Fiscal Policy Reforms, Taiwo Oyedele and other panelists again made convincing arguments for the passage of the Bills before the National Assembly.

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Here are the 10 ways the Tax Bills will serve the states better and enhance their capacity to earn more revenue:

1. The federal government will cede 5% out of its current 15% share of VAT revenue to states.

2. The Bills will transfer income from the Electronic Money Transfer levy exclusively to states as part of stamp duties.

3. The Bills seek to repeal obsolete stamp duties law and re-enactment of a simplified law to enhance the revenue for states.

4. Under the new dispensation the Tax Bills will usher in, states will be entitled to the tax of Limited Liability Partnerships.

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5. When passed by the National Assembly, the Tax Bills will enable the state government to enjoy tax exemption on their bonds to be at par with federal government bonds.

6. Under the proposed tax reform, states will enjoy a more equitable model for VAT attribution and distribution that will lead to higher VAT income.

7. Integrated tax administration will provide tax intelligence to states, strengthen capacity development and collaboration, and scope of Tax Appeal Tribunal to cover taxpayer disputes on state taxes.

8. The proposed tax laws grant powers for Accountant General of the Federation to deduct taxes unremitted by a government or MDA and pay to the beneficiary sub-national government on personal income tax of workers of federal institutions in states.

9. Framework to grant autonomy for states internal revenue service and enhanced Joint Revenue Board to promote collaborative fiscal federalism.

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10. Legal framework for taxation of lottery and gaming and introduction of withholding tax for the benefit of states.

From the aforementioned, it is clear that the Tax Bills are not in any way injurious to the states. Apart from streamlining the tax system in Nigeria and catalysing economic output, the tax and fiscal policy reforms provide incentives for states to become economic powerhouses. The challenge for governors will be to put on their thinking cap by investing in manpower and critical social and physical infrastructure in their states that will support businesses and socio-economic activities to flourish.

-Ajayi is Senior Special Assistant to the President on Media and Publicity

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Forging Ahead: The Evolving Nigeria-South Africa Alliance

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By Sunday Dare

As Nigeria and South Africa hold the 11th session of Nigeria-South Africa Bi-National Commission, in Cape Town, on Tue Dec 3, 2024 it is trite to establish the contours of their relationship and to thank President Tinubu for keeping faith with Africa’s other big brother.
The radar on Nigeria again shifts to South Africa witnessing three weeks of unprecedented shuttle political and economic diplomacy.

President Bola Tinubu’s co-chairmanship of the 11th Nigeria-South Africa Bi-National Commission (BNC) alongside President Cyril Ramaphosa marks a significant diplomatic step towards fostering stronger bilateral ties.

This meeting, which coincides with the 25th anniversary of the BNC, underscores the importance of high-level engagements between Africa’s two largest economies.

As Nigeria and South Africa convene the 11th session of the Nigeria-South Africa Bi-National Commission (BNC) in Cape Town on Tuesday, December 3, 2024, it is imperative to reflect on the historical and evolving contours of their relationship. This milestone session, coinciding with the 25th anniversary of the BNC, serves as a testament to the resilience, ambition, and shared vision of Africa’s two largest economies. It is also a fitting moment to commend President Bola Ahmed Tinubu for his unwavering commitment to fostering robust ties with Africa’s other “big brother,” South Africa.

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In the wake of three weeks of intense shuttle diplomacy spanning political and economic arenas, Nigeria’s radar is again fixed on South Africa. These engagements underscore a mutual recognition of their intertwined destinies in shaping Africa’s future.

As leaders, policymakers, and stakeholders converge in Cape Town, the air will be laden with both expectation and nostalgia—a poignant reminder of a partnership that has endured triumphs, challenges, and moments of historic significance.

One cannot but recall May 1990, when Nelson Mandela, few months after his release from Robben Island, embarked on a state visit to Lagos. That moment, etched in the annals of African solidarity, rekindled the bond between Nigeria and South Africa, catalyzing a renewed era of collaboration. It was a symbolic bridge, uniting the aspirations of two nations whose struggles and victories have defined the narrative of Africa’s journey toward liberation and unity.

This week, Cape Town becomes the stage for another chapter in this storied relationship. With the BNC serving as a platform for dialogue and cooperation, the two nations are poised to reaffirm their roles as co-architects of a continent driven by shared prosperity, peace, and purpose. Their ability to navigate the currents of history while embracing the opportunities of the future demonstrates that this partnership is, indeed, coming of age.

Established in 1999, the Nigeria-South Africa BNC is a structured platform aimed at enhancing cooperation across political, economic, and social sectors. Over the years, the commission has evolved into a key mechanism for dialogue, addressing shared challenges, and fostering sustainable development.

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This year’s session, encompassing eight working groups, highlights both nations’ commitment to addressing mutual priorities: These key priorities include political consultations (ensuring stability in regional and global contexts), consular and migration Issues (addressing concerns such as xenophobia and facilitating smoother relations), banking and finance (exploring avenues for economic integration), defence and security (trackling transnational crimes and terrorism), as well as manufacturing and trade (including strengthening intra-African trade under the African Continental Free Trade Agreement, AfCFTA). Also covered are mines and energy (leveraging natural resources for mutual benefit, social sector development (promoting education, healthcare, and culture), and trade and Investment (expanding business opportunities for both nations).

The philosophical underpinnings for the BNC embodies principles of Pan-Africanism, Ubuntu, and liberal institutionalism, emphasizing unity, collective progress, and institutionalized cooperation. As Nelson Mandela aptly stated, “The greatest glory in living lies not in never falling, but in rising every time we fall.” This captures the essence of overcoming historical frictions to achieve a united African future.

President Tinubu’s leadership in this context is pivotal, reflecting Nigeria’s strategic role in Africa’s socio-economic and political landscape.

A discussion of the ongoing efforts would be incomplete without referencing philosophical concepts that accentuate its significance.
Rooted in the works of W.E.B. Du Bois, Kwame Nkrumah, and Julius Nyerere, Pan-Africanism emphasizes the solidarity of African nations to combat external domination and promote socio-economic progress. The BNC reflects this ideal by uniting Nigeria and South Africa as pillars of African development. As Kwame Nkrumah once said, “The forces that unite us are intrinsic and greater than the superimposed influences that keep us apart.”. This quote underscores the importance of Nigeria and South Africa overcoming historical challenges, such as xenophobia, to focus on collective progress.

The BNC’s deliberations and MoUs can be seen as an extension of this principle. According to Aristotle, “The good of the people must be the great aim of government.” The Southern African philosophy of Ubuntu, often translated as “I am because we are,” aligns with the spirit of the BNC. It emphasizes interconnectedness, mutual respect, and the collective good. Ubuntu offers a philosophical lens through which Nigeria and South Africa can navigate shared challenges and opportunities. As Desmond Tutu once reflected: “We can only be human together: hence, the essence of collaborative efforts in fostering a united African front.

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Beyond these, the Dependency Theory, associated with scholars like Andre Gunder Frank, critiques the global economic system’s perpetuation of underdevelopment in the Global South. By strengthening intra-African trade and reducing reliance on foreign powers, Nigeria and South Africa can challenge these structures through platforms like the BNC. Joseph Stiglitz’s words that “Development is about transforming the lives of people, not just transforming economies,” aligns with the BNC’s goals of translating economic growth into meaningful societal impacts.

The pragmatic effort to address specific issues in trade, security, and development stresses the responsibility of both leaders to focus on concrete outcomes over rhetoric. More importantly, it refects the basic principles of African Renaissance. Championed by scholars like Cheikh Anta Diop and Thabo Mbeki, the African Renaissance envisions a continent reclaiming its rightful place in global affairs through unity, cultural revival, and economic development. The BNC is a practical manifestation of this vision.Certainly, Tinubu and Ramaphosa are evoking the shared identity and destiny of Nigerians and South Africans in fostering an African Renaissance. The BNC serves as a practical example of liberal institutionalism, fostering dialogue and collaboration in a structured manner. As Martin Luther King Jr once stated, “We must learn to live together as brothers or perish together as fools.” This underscores the imperative for sustained collaboration through institutions like the BNC.

Constructivism suggests that international relations are shaped by ideas, identities, and shared values rather than mere material factors. Therefore, the symbolic 25th anniversary of the BNC is a reflection of the shared identity and history of Nigeria and South Africa.
According to John Maynard Keynes, “The ideas of men, their dreams and visions, are much more powerful than material forces.” The role of shared visions in shaping Nigeria-South Africa relations cannot be over-emphasized.

Shared History

The history of Nigeria-South Africa relationship runs through the period of Anti-Apartheid Solidarity of 1960 – 1965, through Post-Apartheid engagement that started in 1999. Nigeria was a leading supporter of South Africa’s liberation movement. Between 1960 and 1995, Nigeria committed substantial financial and diplomatic resources to the anti-apartheid struggle, offering refuge and education to South African exiles like Thabo Mbeki.The Bi-National Commission, established in 1999, institutionalized bilateral cooperation. However, relations have faced challenges, including xenophobic attacks in South Africa and trade imbalances.

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The current nature of the two countries’ economic relations shows that Nigeria’s oil exports and South Africa’s industrial expertise complement each other. Opportunities under AfCFTA and energy collaboration highlight the untapped potential of this relationship. Looking ahead, it is rather easy to see that with strong historical ties and shared visions, Nigeria and South Africa are well-positioned to lead Africa’s socio-economic transformation.

From Anti-Apartheid Solidarity to Economic Collaboration

The Nigeria-South Africa relationship is a tale of resilience, solidarity, and transformation, deeply rooted in shared historical, political, and economic narratives. As Africa’s largest economies, the two nations have carved distinct yet intertwined paths that highlight their roles as both leaders and collaborators in shaping the continent’s destiny. From Nigeria’s pivotal support during South Africa’s anti-apartheid struggle to their evolving economic partnership, this relationship embodies the essence of African unity. Yet, it has not been without its challenges, marked by moments of friction and unresolved tensions.
The forthcoming 11th session of the Nigeria-South Africa Bi-National Commission (BNC) in Cape Town provides a fitting occasion to reflect on this storied partnership. With the backdrop of the 25th anniversary of the BNC, it is an opportune moment to examine how the two nations have evolved from their shared fight for justice to becoming co-architects of Africa’s economic and political renaissance.
The roots of the Nigeria-South Africa partnership lie in the era of apartheid, where Nigeria emerged as one of the most steadfast allies of the African National Congress (ANC) and other liberation movements in South Africa and Nigeria’s key contributions cover:

• Diplomatic Advocacy: Nigeria was a vocal opponent of apartheid on global platforms such as the United Nations and the Commonwealth, pushing for sanctions and isolating South Africa’s apartheid regime diplomatically.

• Financial and Material Aid: Under initiatives such as the “Mandela Tax,” successive Nigerian governments provided significant financial and logistical support to the ANC. Over the decades, Nigeria is estimated to have spent over $61 billion in its efforts to dismantle apartheid.

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• Educational and Cultural Solidarity: Nigeria welcomed South African exiles and offered scholarships to ANC members, including figures like Thabo Mbeki, who studied and lived in Nigeria during apartheid. Nigerian universities served as sanctuaries for intellectual and political development for many South African activists.

• Civil Society Advocacy: Nigerian artists, intellectuals, and activists utilized literature, music, and advocacy to raise global awareness of the atrocities of apartheid and rally international solidarity.

Nigeria-South Africa relations in the post-apartheid era reflects collaboration, along with some measure of frictions. With apartheid dismantled in 1994 and Nelson Mandela’s election as South Africa’s first democratic president, the dynamic between the two nations transitioned from solidarity to collaboration. However, this new era was also punctuated by moments of tension.

Collaborative Achievements

• Institutional Frameworks: The establishment of the Bi-National Commission in 1999 formalized a structured approach to bilateral engagement.

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• African Leadership: Both nations played pivotal roles in initiatives such as the African Union (AU) and the New Partnership for Africa’s Development (NEPAD), advancing the African Renaissance.

• Economic Ties: South African corporations such as MTN, Shoprite, and Multichoice became prominent players in Nigeria’s economic landscape, fostering trade and investment.

Sources of Tension:

• Xenophobia: Recurrent xenophobic attacks on Nigerians living in South Africa have strained relations, spotlighting socio-economic grievances and perceptions of competition.

• Diplomatic Disputes: Occasional policy disagreements, such as South Africa’s visa denial to Nigerian officials during Goodluck Jonathan’s presidency, have highlighted gaps in mutual understanding.

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• Trade Imbalance: While South African businesses thrive in Nigeria, Nigerian firms face significant barriers in South Africa, fueling perceptions of unequal benefits.

Pragmatic mutual exploration of trade and economic potentials has since taken over. As Africa’s two largest economies, Nigeria and South Africa are uniquely positioned to lead the continent’s economic transformation.
Current Dynamics.

• Trade Composition: Nigeria primarily exports crude oil and natural gas to South Africa, while South Africa exports machinery, manufactured goods, and processed foods.

• Investment Landscape: South African firms dominate in sectors like telecommunications (MTN), retail (Shoprite), and media (Multichoice).
Opportunities for Growth.

• Intra-African Trade: The African Continental Free Trade Area (AfCFTA) presents opportunities for deeper trade integration, particularly in technology and industrial goods.

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• Energy Partnerships: Nigeria’s energy surplus and South Africa’s demand create possibilities for collaboration in oil, gas, and renewables.

• Shared Regional Leadership: Joint infrastructural and developmental initiatives can drive economic growth across Africa.

A Vision for the Future
Despite historical and contemporary challenges, the Nigeria-South Africa partnership remains a cornerstone of African diplomacy. The 25th anniversary of the Bi-National Commission serves as an opportunity to recalibrate their relationship and unlock its potential for mutual and continental benefits.

As Thabo Mbeki poignantly remarked:
“We share a common destiny as Africans. Only through unity and cooperation can we rise above our challenges and achieve greatness.”
This sentiment captures the essence of Nigeria-South Africa relations—a partnership poised to redefine Africa’s trajectory toward peace, prosperity, and global relevance.

Sunday Dare
Special Adviser, to the President on Media and Public Communications

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