…says zoning arrangements clearly favoured a section of Nigeria

By Emmanuel Agaji

The Director General of Centre for Credible Leadership and Citizens Awareness, CCLCA Dr Gabriel Nwambu has called for critical examination and outright condemnation of the move to create 31 additional states in Nigeria.

Dr Nwambu disclosed on Friday in a position paper entitled: ‘Position Paper: Condemnation of the Proposal for New State Creation in Nigeria’ declaring that:

“The recent proposals for the creation of 31 new states by the House of Representatives Committee warrant critical examination and, ultimately, outright condemnation.

“As Nigeria navigates through significant economic challenges, it is essential we approach governance reforms with an understanding of current realities.

“It is clear that the creation of additional states is not a viable solution to our nation’s pressing issues and, in fact, could exacerbate the situations we are working hard to overcome.

Current Viability of Existing States

“As it stands, Nigeria is currently composed of 36 states, including the Federal Capital Territory. A disconcerting number of these states are not financially viable. Many states are unable to meet basic obligations, such as paying the minimum wage of ₦70,000.

He explained that: “The crux of the matter is that some states have reached a point of insolvency, making the idea of creating new states—a process that demands additional financial resources—even more untenable.

” Rather than resolving existing state-level inefficiencies, the introduction of new states would only compound financial burdens on an already strained federation.

Zoning and Geopolitical Implications

“The proposed new states raise critical concerns regarding zoning and geopolitical distribution, particularly highlighting an imbalance favoring northern regions.

“The potential increase in Local Government Areas in the North signifies not just a concentration of political resources but also increased financial allocations to that region. This further marginalizes regions like the South East, where the new proposals result in fewer states. Such an approach fails to foster national cohesion and equity among the disparate regions of Nigeria, risking further discord rather than unity.

Cost of Governance Concerns

“The timing of these proposals is troubling, especially as we engage in discussions aimed at reducing the cost of governance in Nigeria.

” The addition of 31 new states would inherently lead to an increase in legislative assemblies, senators, and representatives, thereby inflating the political structure rather than streamlining it. Rather than focusing on mechanisms to enhance governance efficiency, we would instead be entrenching a model that is financially unsustainable.

Imminent National Challenges

“Moreover, the pressing issues that Nigeria faces—ranging from rampant insecurity, widespread unemployment, inadequate healthcare, and dwindling infrastructure—demand our immediate attention and resources. At this pivotal moment, the creation of new states distracts from tackling these fundamental concerns.

” It is crucial to consider how we can strengthen existing governance structures, enhance service delivery, and ensure that government revenues transparently address the needs of our citizens, rather than atrophying under the weight of new state establishments.

Conclusion

“In conclusion, the Centre for Credible Leadership and Citizens Awareness strongly condemns any proposals for the creation of new states in Nigeria.

“Such actions would not only worsen our current economic quagmire but would also lead to heightened regional disparities, escalating governance costs, and distract from the critical reforms and policies necessary to improve the lives of Nigerians across the country.

“We urge policymakers, opinion leaders, and the general public to prioritize pressing developmental needs over cosmetic political restructuring.

“The focus should remain on enhancing the efficiency and viability of existing states, tackling economic challenges head-on, and fostering true national unity. The call for new states is neither a panacea for our problems nor a justifiable use of national resources at this time.

“Thank you for considering this position paper. We hope it contributes to the necessary dialogue surrounding the governance challenges we face in Nigeria.

U.S. President Donald Trump signed an executive order ordering the creation of a sovereign wealth fund within the next year, saying it could potentially buy the short video app TikTok.

If created, the sovereign wealth fund could place the U.S. alongside numerous other countries, particularly in the Middle East and Asia, that have launched similar funds as a way to make direct investments with government dollars.

The text of the executive order was sparse on details, and simply directed the Treasury and Commerce Departments to submit a plan for such a fund within 90 days, including recommendations on “funding mechanisms, investment strategies, fund structure, and a governance model.”

Typically such funds rely on a country’s budget surplus to make investments, but the U.S. operates at a deficit. Its creation also would likely require approval from Congress.

“We’re going to create a lot of wealth for the fund,” Trump told reporters. “And I think it’s about time that this country had a sovereign wealth fund.”

Trump had previously floated such a government investment vehicle as a presidential candidate, saying it could fund “great national endeavors” like infrastructure projects such as highways and airports, manufacturing, and medical research.

Administration officials did not say how the fund would operate or be financed, but Trump has previously said it could be funded by “tariffs and other intelligent things.”

Treasury Secretary Scott Bessent told reporters the fund would be set up within the next 12 months.

“We’re going to monetize the asset side of the U.S. balance sheet for the American people,” Bessent said. “There’ll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people.”

One approach would be to convert the U.S. International Development Finance Corp (DFC) to function similar to a sovereign wealth fund, which the Trump administration reportedly considered in recent months, Bloomberg News reported. The DFC is a government agency that currently partners with private parties to finance projects in the developing world.

Trump announced Friday he was nominating Benjamin Black to head that development agency. Black, a managing partner at investment firm Fortinbras Enterprises, is the son of Leon Black, the co-founder of asset management firm Apollo Global Management.

The Biden administration also was considering establishing such a fund prior to Trump’s election in November, according to The New York Times and Financial Times.

But precisely how such a fund would be structured, and funded, remained unclear. Several experts said Congress would likely need to authorize new funding given the lack of an existing surplus to tap. The order directed officials to review any need for legislation.

Clemence Landers, a former Treasury official who is now with the Center for Global Development, said there has been talk of repurposing the DFC but setting up such a fund would require Congress.

“Obviously you can’t establish an institution by executive order and more to the point is you can’t fund an institution by executive order,” she said.

Investors said the news came as a surprise.
“Creating a sovereign wealth fund suggests that a country has savings that will go up and can be allocated to this,” said Colin Graham, head of multi-asset strategies at Robeco in London. “The economic rules of thumb don’t add up.”

There are over 90 such funds across the world managing over $8 trillion in assets, according to the International Forum of Sovereign Wealth Funds.

Numerous U.S. states, including Alaska, Texas and New Mexico also have their own wealth funds, which help fund various priorities, including education and tax relief. They frequently rely on revenue raised by natural resources, like oil or land.

In another surprise twist, Trump suggested the wealth fund could buy TikTok, whose fate has been up in the air since a law requiring its Chinese owner ByteDance to either sell it on national security grounds or face a ban took effect on Jan. 19.

Trump, after taking office on Jan. 20, signed an executive order seeking to delay by 75 days the enforcement of the law.

Trump has said that he was in talks with multiple people over TikTok’s purchase and would likely have a decision on the app’s future in February. The popular app has about 170 million American users.

“We’re going to be doing something, perhaps with TikTok, and perhaps not,” Trump said. “If we make the right deal, we’ll do it. Otherwise, we won’t…we might put that in the sovereign wealth fund.”