For more than three decades, “restructuring” has remained one of the most contentious concepts in Nigeria’s political vocabulary. Successive administrations, constitutional scholars, civil society organisations, and regional socio- political groups have argued that Nigeria’s highly centralised federal system requires fundamental reform to address insecurity, fiscal imbalance, economic stagnation, and uneven development.
Several national conferences including the 1994, 1995 Constitutional Conference, the 2005 National Political Reform Conference, and the 2014 National Conference convened under President Goodluck Jonathan produced extensive recommendations. Yet few of those proposals were implemented, largely because of political disagreement and constitutional hurdles.
Rather than convening another national conference, President Bola Ahmed Tinubu appears to be pursuing restructuring through constitutional amendments, legislative reforms, judicial implementation, and executive policy. Whether this amounts to genuine restructuring or merely administrative reform remains a matter of debate. Nevertheless, the cumulative effect of these initiatives represents one of the most significant shifts in Nigeria’s governance architecture since the return to democratic rule in 1999.
State Police: The Most Significant Constitutional Shift Since 1999
Perhaps the most consequential reform is the constitutional amendment establishing state police.
For over two decades, governors, security experts, constitutional lawyers, and regional organizations including the Nigeria Governors’ Forum and various security commissions have argued that Nigeria’s centralized police structure is inadequate for a federation of more than 220 million people facing terrorism, banditry, kidnapping, and communal conflicts.
Until recently, successive administrations resisted decentralising policing, citing fears that governors might misuse state controlled police against political opponents.
The constitutional amendment passed by the Senate in June 2026 seeks to address these concerns through institutional safeguards, oversight mechanisms, and continued federal responsibility for national security.
If fully implemented, the reform would represent the most extensive devolution of security powers since Nigeria’s democratic transition in 1999.
As political scientist K. C. Wheare famously observed:
“Federalism is the method of dividing powers so that general and regional governments are each, within a sphere, coordinate and independent.”
State policing arguably moves Nigeria closer to that classical federal principle.
Local Government Autonomy: Power Shifts to the Grassroots
Another long standing structural concern has been the financial dependence of local governments on state governments through the State Local Government Joint Account.
Following judicial interventions supported by the Federal Government, local governments have gained greater financial autonomy, enabling allocations from the Federation Account to reach councils more directly.
Supporters argue this strengthens grassroots governance, improves accountability, and enhances service delivery.
Critics, however, caution that financial autonomy alone cannot guarantee development without stronger transparency mechanisms, independent auditing, and democratic local elections.
Tax Reform: Fiscal Restructuring in Practice
In 2025, the administration enacted four landmark tax laws:
Nigeria Tax Act
Nigeria Tax Administration Act
Nigeria Revenue Service Act
Joint Revenue Board Act.
Together, these reforms simplify Nigeria’s fragmented tax system, reduce multiple taxation, improve compliance, modernize tax administration, and enhance the ease of doing business.
One notable provision expands tax relief for many small businesses, reducing compliance burdens and encouraging entrepreneurship.
Economists have long argued that efficient taxation not merely higher taxation is essential for sustainable development.
As Adam Smith wrote in The Wealth of Nations:
“The subjects of every state ought to contribute toward the support of government as nearly as possible in proportion to their respective abilities.”
Oil Revenue Reform: Greater Transparency
Oil remains Nigeria’s principal source of public revenue.
For years, concerns persisted that significant deductions occurred before revenues reached the Federation Account.
The administration’s directive requiring government oil revenues to be remitted directly into the Federation Account aims to improve transparency, strengthen public finance management, and ensure more equitable distribution among the three tiers of government.
Whether these measures produce lasting improvements will depend on implementation, institutional oversight, and anti corruption enforcement.
Fuel Subsidy Removal: Politically Difficult, Economically Significant
Perhaps no policy has generated greater public debate than the removal of fuel subsidies.
Previous administrations under Olusegun Obasanjo, Goodluck Jonathan, and Muhammadu Buhari attempted partial reforms but faced widespread resistance.
President Tinubu announced subsidy removal during his inaugural address on 29 May 2023.
Supporters argue that subsidies consumed trillions of naira annually, distorted public finances, encouraged smuggling, and disproportionately benefited wealthier households.
Critics counter that the abrupt removal contributed to inflation, increased transportation costs, and significantly worsened the cost of living crisis for millions of Nigerians.
Both perspectives contain important truths: while subsidy reform may improve fiscal sustainability over the long term, its short-term social costs have been severe.
Electricity Decentralisation
The Electricity Act fundamentally altered Nigeria’s electricity governance by allowing states to regulate electricity generation, transmission, and distribution within their jurisdictions.
For decades, electricity policy remained largely centralised.
The reform allows states to establish independent electricity markets, attract private investment, and pursue locally tailored energy solutions.
This represents another important step toward cooperative federalism.
Regional Development Commissions
The establishment and expansion of regional development commissions covering Nigeria’s six geopolitical zones reflects another decentralizing initiative.
Rather than relying exclusively on federal ministries, these commissions are intended to coordinate infrastructure, economic development, environmental management, and regional planning.
Their long-term effectiveness, however, will depend on adequate funding, accountability, and freedom from political patronage.
Increased State Revenues
Following subsidy removal, exchange rate liberalization, and broader fiscal reforms, allocations from the Federation Account Allocation Committee (FAAC) have increased substantially.
Many state governments now receive historically high monthly allocations.
Supporters argue this provides states with greater fiscal capacity to invest in education, healthcare, infrastructure, and agriculture.
Critics respond that increased allocations have not always translated into improved governance, raising persistent questions about transparency, public financial management, and accountability at the subnational level.
Is This Restructuring?
The answer depends largely on how restructuring is defined.
Those who equate restructuring with the creation of state police, fiscal decentralization, energy federalism, local government autonomy, and institutional devolution may conclude that Nigeria is already experiencing incremental restructuring.
Those who advocate a broader constitutional redesign including resource control, state creation, revenue allocation, legislative restructuring, and constitutional replacement may argue that the current reforms remain incomplete.
Political scientist Daniel J. Elazar observed that successful federations are built not merely on constitutional texts but on the continuous negotiation of power between different levels of government. Nigeria’s present reforms may therefore be understood as an evolving process rather than a final constitutional settlement.
President Bola Ahmed Tinubu’s administration has undeniably initiated some of the most consequential institutional reforms since Nigeria’s return to democracy in 1999. Through state policing, local government financial autonomy, tax modernization, electricity decentralization, oil revenue reforms, and fiscal restructuring, the administration has pursued a practical, legislative pathway toward redistributing governmental authority without convening another national conference.
Whether history ultimately judges these reforms as transformative will depend less on their legislative enactment than on their implementation, transparency, and impact on the daily lives of Nigerians. Restructuring is not merely about transferring powers between levels of government; it is about creating institutions that are more responsive, accountable, equitable, and capable of promoting national development.
The debate, therefore, should move beyond whether Nigeria is restructuring and focus instead on whether these reforms will deliver the security, prosperity, and democratic governance that citizens have long demanded.
Cliff Stanley
Political Scientist /Analyst
Cliffstanley3@gmail.com
07032826319.
