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Heirs of a Heritage
Heirs of a Heritage
Heirs of a Heritage
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Heirs of a Heritage

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Lagos, Nigeria is the engine driving the nation's astonishing transformation into a modern, fully-functioning democracy. The megacity is host to nearly 20 million people and in the last 15 years, Lagos State has become one of the only subnational governments to be financially self-sufficient from the federal government's monthly allocations. The new source of funding is a historically-neglected resource in Nigeria: the people.

With the development of a modern tax administration, Lagos State has begun to chart a course of stable progress never before seen in Nigeria. Public projects to improve mass transport, infrastructure, and important social services have been funded largely by tax revenues instead of oil revenues, creating a much more sustainable government budget that does not rely on the volatile prices of exchange on the international market.

Lagosians from all walks of life have been witness to these changes around the city, sharing stories of the government's new focus on addressing the needs of the people. With a robust commercial environment and the lowest rates of poverty in Nigeria, Lagos has begun to unlock the people's potential to improve their lives and their businesses. Dr. William Babatunde Fowler and his team at the Lagos State Internal Revenue Service have strategically employed tax reform to reconnect Lagosians with their rightful heritage as Nigerians. A bright future full of opportunity has arrived for the people of Lagos, funded almost entirely by their personal contributions to the megacity vision.

LanguageEnglish
PublisherGodKulture
Release dateJan 15, 2015
ISBN9780986271618
Heirs of a Heritage
Author

James Awam Jr.

James Awam Jr. is a formerAssistant Board Secretary for the LagosState Internal Revenue Service (LIRS) inLagos, Nigeria. With experience inbanking, consulting and public relations,he offers a diverse background in variouscareer sectors.Working closely alongside his mentor Dr.William Fowler for years, he discoverednew passion for public service andleadership which led him to receive acertificate in Public AdministrationExecutive Leadership from RutgersUniversity.He holds a B.Sc. in BusinessAdministration from Ahmadu BelloUniversity, Zaria (Northern Nigeria) and aMaster’s degree in Project Managementfrom The Robert Gordon University,Aberdeen (United Kingdom).James currently resides in the US and isa member of the Project ManagementInstitute (PMI) and the Chicago Councilon Global Affairs.

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    Heirs of a Heritage - James Awam Jr.

    This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the publisher.

    Heirs of a Heritage

    Copyright © 2014 by James Awam Jr.

    Smashwords Edition

    ISBN 978-0-9862716-0-1

    eBook ISBN 978-0-9862716-1-8

    Cover Design, Infographics & Interior Layout by

    Rotimi Kehinde / rotimikehinde.com

    Art and Illustration by

    Michael Omotosho and Mike P. Anderson

    Printed in the United States of America

    www.heirsofaheritage.com

    Dedicated to:

    God, the Father of all Truth

    from whom all knowledge comes.

    Preface - Eko o ni baje

    Lagos, Nigeria has filled many roles throughout the history of the nation. Once the capital of the federation, it has remained a thriving commercial center and the main hub of business for Nigeria’s economy. As Nigeria’s main port city, it is the fulcrum of the domestic and international economy. As Nigeria has gradually climbed to global prominence on international markets, Lagos has become an even more vital asset to the country overall. Nigerians have come to rely on Lagos as the steward of national progress and as a place of opportunity for those who seek it.

    Over the past 15 years, Nigeria has successfully completed its transition from a military government to a democratically-elected government. Several transition attempts were made but of these none have been as successful as the present period. At every level of governance, leaders have been chosen and supported by popular mandate.

    Given the importance of Lagos, the state leadership tasked with running Nigeria’s megacity has a great responsibility to Lagosians and Nigerians overall. The new era of government in Nigeria has coincided with one of the most important times in global history. Globalization has transformed the international markets into an incredibly valuable source of empowerment for many of the world’s developing nations. Nigeria has been a heavyweight in the global economy for decades, but political turmoil and popular unrest have consistently limited the nation’s ability to transform its massive resource wealth into sustainable national progress. Even with billions of dollars in oil revenue per week, the country is still ranked among the poorest in the world. The cause of this phenomenon can be summarized as the result of a series of missed opportunities to transform volatile but highly-concentrated oil revenues into a stable economic base.

    The advent of a more transparent state government has created a new window of opportunity for the people of Lagos. As Nigeria’s commercial hub, Lagos is a unique Nigerian locale for its densely packed urban population and diverse economic activity. Since 1999, the leadership of Lagos State has made important strides towards correcting the course of Nigeria’s faltering development. Recognizing the robustness of the megacity’s domestic economy, the state government found a unique source of revenue to supplement the financing received from the federal government’s oil profits: taxes.

    Taxation as a government policy was neglected for many years because of its unpopular nature with the public, the difficulty associated with its collection and the disproportionate influence of oil profits within government. Due to these factors, the administrative structures required for taxation were never fully established and the country remained without significant sources of domestic revenue for most of its time as an independent nation. Many periods of economic hardship have been experienced due to Nigeria’s historic vulnerability to the boom and bust cycles of oil on the international market. But with the introduction of effective taxation, Lagos State improved its ability to capture oil wealth and prevented it from leaving the country before it contributed to the domestic economy. Beyond the improvements to the state government’s balance sheets, Lagos experienced a number of immeasurable benefits from the implementation of the new strategies.

    Firstly, the viability of state government fiscal policies was less influenced by the price of oil on the international market and the federal allocation formula. Public infrastructure projects became easier to fund through to their completion and the provision of services to the public became more efficient and reliable. Secondly, the state government’s new strategies represented a pivot very much in line with the democratic character of a new Nigerian model of government previously unseen in the country. The Lagos State government began actively courting its citizens in order to gain their support and enforce tax payments. The effects of this pivot have been wide ranging, but most importantly, Lagosians have begun to believe that their state government is working for their greater good. For a country that has distrusted the authority of its leadership for generations, this improvement represents the realization of a new era in Lagos.

    The global recession of 2008 signaled the next opportunity for Nigeria. While the developed world was struggling to contain the effects of rampant debt, the price of oil dropped significantly. With over 90% of exports based in oil, Nigeria faced an inconvenient truth on an undeniable scale. Oil wealth alone would not sustain the country. But with a functioning government supported by the people’s mandate, the time for change was at hand. The urgency of the economy’s transition away from oil dependency was obvious, and the taxation reforms already taking place in Lagos gathered even more momentum as people recognized the value of their vote and their taxes. In Lagos State, the number of taxpayers has skyrocketed from barely 300,000 in 2005 to 3.5 million in 2013 and the tax base continues to grow at an astounding rate.

    The global economy has returned to a relative state of stability, but not without a reordering of the top players. Many of the developing nations that were leading the pack before 2008 are now struggling to maintain their rates of economic ascendency. Nigeria, on the other hand, has maintained its economy’s growth. In the first quarter of 2014, a recalculation of the economy to include major industries like telecoms, information technology, music and film production, and other industries, Nigeria surpassed South Africa to become the largest economy in Africa. But it is not the economic fortunes which have held back Nigeria from glory. Rather, it has been the high levels of corruption, lack of technical capabilities, faltering political cohesion, and tepid public support for the government that has left Nigeria behind its international peers in terms of development.

    In Lagos State, there is a new brand of technocratic leadership taking hold. Tax reform has been the primary agent of change for the government, but it is the unconventional methods used to pursue tax reform that have begun to meaningfully transform the city. The strategies of technocrats like Bola Ahmed Tinubu, Babatunde Raji Fashola and Dr. William Babatunde Fowler are unprecedented and deserve both elaboration and celebration. Because of these men’s continued dedication to good governance, efficient administration and an open dialogue with the public, Lagosians now have more freedom and leverage to improve their lives than ever before. The methods to achieve a stable and diversified economy have been set in motion through tax reform and public projects, but more importantly, the people have been reconnected with their rightful heritage as democratic participants in the progress of Nigeria.

    This book was written with the belief that Lagos has entered a crucial period of transition. The people’s trust in their leaders is still shaky, but without public support, no government-led initiative can succeed. At this turning point in history, the people must believe in their government in order to secure the positive changes being commissioned for their futures.

    Without continued support, the successes of the past 15 years will remain fragile and tentative. It is the author’s hope that presenting the deeds of Lagos State’s present leadership in the context of Nigerian history will show readers that there are many reasons to be optimistic about the fate of the only megacity in Africa’s largest nation. By 2050, Nigeria is projected among the top five economies in the world. The transformation happening in Lagos is just the beginning of a much greater journey.

    What counts in life is not the mere fact that we have lived. It is what difference we have made to the lives of others that will determine the significance of the life we lead.

    ~

    Nelson Mandela

    Introduction

    Lagos, with its modern skyscrapers, sparkling coastal waters, dazzling beaches, and rich cultural heritage is the gemstone of Nigeria’s national development. Not only is it the most populous city in the country, but for decades, Lagos has been leading the way on the road to national progress, setting higher standards for other states and achieving new successes each year.

    The journey to reach this point has been long. Nigeria celebrated its 100th birthday in 2014, an anniversary that marks the passage of an entire century in which Nigeria has survived as an industrious and prosperous country, despite significant challenges and setbacks. There were many people that said the nation would not survive this long, and undoubtedly, there were times when these doomsday predictions seemed to verge on becoming reality. And yet today, the country still stands as a sovereign nation with the reigns to its destiny in hand.

    This country has survived for many reasons, but the foremost explanation is the resilience and determination of the people. Nigerians across the country have witnessed the historic atrocities committed by small-minded government authorities and destructive street thugs that act solely on their own interests. The abundant natural resources, the vibrant and diverse cultures of the people, and Nigeria’s international reputation have all been tainted by the touch of careless and gluttonous criminals. Even with billions in weekly oil revenue flowing around them, the people of Nigeria still work their fingers to the bone just to meet their basic personal needs.

    Lagos has been more fortunate than other places in Nigeria because of the strength and versatility of its industries, marketplaces, and leaders. It was once the nation’s capital, but even now, it holds a preeminent position as the most valuable port city in Nigeria. There are many commercial aspects of Lagos that make it the most favorable city to conduct business and trade, but there is also something even more valuable the city offers: heritage.

    Since the time of its foundation in the fifteenth century, Lagos has attracted more commerce and international trade than any other place in Nigeria. People flocked to the city because there were more opportunities for a better life than elsewhere. Many put down roots where they could in order to be a part of the ongoing transformation of the bustling city-life in Lagos. The heritage we are speaking of is the reason why so many people choose Lagos as their home and place of business. The heritage is the result of many generations of Lagosians contributing to and participating in the city’s growth. But not everyone supports this heritage because of the tumultuous history attached to it.

    There was much growth in Lagos during the 1960s, 1970s and 1980s, but it came at a sporadic, unreliable rate due to the oil boom revenues that fueled it. Over these years government authority was shattered and rebuilt along fragile support systems that favored the newest batch of leaders without regard to the foundations already put in place by previous governments. Existing plans for civil development were shelved and forgotten each time power changed hands. In most cases, the only plans enacted involved the parceling of oil revenue to the politicians of the day. Even though natural assets are owned collectively by society, these leaders did not believe it was their responsibility to share the wealth of the land with the people of the land, even if it was extracted from the ground beneath Nigerian feet. These leaders gained immensely, as did those close to them, without giving back to the land that raised them. It is these dishonorable deeds that have served to disenfranchise millions of Nigerians, severing the connection between the people and their leaders. While corruption and the siphoning of public funds remains a concern in today’s Nigerian democracy, there are a number of exceptional leaders throughout the country working to rebuild this connection in a meaningful way.

    One of government’s main responsibilities is to make meaningful changes to improve the lives of those that are most in need – the people. Leaders must recognize and pursue the interests of the people that elected them to office. In a true democracy, the only unquestionable power is the voice of the people. The people rely on leaders to enact their wishes for the country, but ultimately, it is the leaders that rely on the people. In Nigeria, the inflows from oil revenues has allowed governments to distance themselves from the people; to ignore their voice. In Lagos, this trend is being reversed.

    The state no longer relies on money from the federal account and its leaders must listen to their people. Without the peoples’ consent, they can have no official powers. Throughout Nigeria’s history, there have been government leaders that disregarded the voice of the people to follow their own desires. Short-sighted views on the part of state authorities have only attempted to replicate the federal agenda because there has been so much historic uncertainty about the proper course of the country. But the federal agenda does not always fit neatly with state and local priorities, especially in the case of Lagos. It is Lagos that sets the trends for improving the peoples’ lives.

    In the past 15 years, Lagos has taken significant steps to reconnect the people with their heritage. Through a long chain of responsible decisions, the leaders of Lagos have helped empower their people with realistic expectations and an enlightened understanding of the democratic system created for them. By keeping their finger on the global pulse and accepting a wider worldview, the leaders of Lagos have allowed for many new ideas and policies to flourish in a country that has remained relatively stagnant compared to its international peers.

    Lagos has broken out from the pack of Nigerian states as the front-runner in infrastructure development and commercial allure. There is still much work to do, but the next generation of Nigerians will be in a much more stable position thanks to the heritage they’ve inherited in Lagos. Whether it is the schools, hospitals, roads, or water processing plants, Lagos is becoming a place where citizens can be proud of the progress, growing opportunities, and the wealth of improvements they will see passed down to their children.

    The city is becoming a place that serves as a safe foundation for all people that live there, providing a powerful type of heritage – national pride. This heritage can be traced back many years, starting with independence and the country’s first attempts towards Nationhood. On October 1, 1960 every child in Nigeria received a national flag at school to celebrate independence, signifying the beginning of their personal and national heritage. The implications of this moment ran deep in the hearts of many, but few could predict how complex the national identity would soon become for Nigerians.

    Chapter 1

    Defining National Heritage

    Historical Inheritance

    The defining struggle over the course of Nigeria’s existence as an independent country has been a fragmented national identity. For almost a century, the distinct ethnic groups of the country have been pitted against each other for the sake of political gains and economic dominance. There is a deeply ingrained mistrust of the powerful minority, which has wielded its power to exclude the majority from a larger and larger portion of the country’s revenue. Regional differences in religion, ethnicity, education and economic opportunities have limited the ability of Nigerians to accept each other and form a cohesive nation. In many ways, it has been in the interest of the privileged elites to keep cultural groups separate and conflicting with each other to destabilize any mass movement that could unseat them. The strategy of divide and conquer is old, but Nigeria has always remained capable of unity.

    Under colonialism government policies placed Nigerian interests second after the British. International trade companies in Lagos were given better financial arrangements to the extent that regular traders and business people were forced out of the markets they helped create. Whenever economic depression struck, British companies would quickly pass on the economic hardship to the workers creating injustices that became too arduous to bear. During the economic depressions of the 1920s and 1940s, people in Lagos suffered from mass layoffs, unemployment and an overall stagnant economy, leading laborers and traders to begin seeking out alternative representation.

    This desire for change served to catalyze stronger feelings of a national identity. With so many people interested in change, leaders who were able to engage with wider society emerged. Labor movements like the first railway strike and political parties like the National Congress of British West Africa were able to unite many diverse groups of people under the national identity of Nigeria.³ More specifically, people began to join together in order to empower their position as the rightful stewards of the land that the British had claimed and divided into two which later became three regions.

    For the good of their nation, each distinct group of Nigerians could accept each other’s differences. As more people began to band together, there was very little the British could do to retain control over the government and the land. Eventually, the Legislative Council in Lagos was established to allow native Nigerians to participate in the governmental processes at the local level. By 1941, the Legislative Council held enough power to levy trade rates and organize their self-governance, making Lagos one of the first arenas for the betterment of the Nigerian people. From this point on, the decisions that were passed down to affect future generations were reached by Nigerian leaders and not foreign governments. With this first taste of government authority, the number of Lagosians that wanted to participate in the electorate process grew quickly. It was only a matter of time until independence was a demand on the lips of every Nigerian.

    On October 1, 1960, Sir Abubakar Tafawa Balewa gave a speech as the newly elected prime minister of independent Nigeria. He gave that speech in Lagos, which was then the seat of the federal government. Speaking at Independence Square to a large crowd of supporters, he began with general salutations, but quickly moved on to express the inheritance that had been bestowed upon him and the country at large:

    Words cannot adequately express my joy and pride at being the Nigerian citizen privileged to accept from Her Royal Highness these Constitutional Instruments which are the symbols of Nigeria’s Independence. It is a unique privilege which I shall remember forever, and it gives me strength and courage as I dedicate my life to the service of our country.

    - Sir Abubakar Tafawa Balewa, Independence Day 1960

    The first pieces of national heritage that Nigeria received as a sovereign nation were the Constitutional Instruments that officially enabled the country to grow and develop by its own prerogatives. For the first time in a century, the nation was entirely responsible for its stewardship. This was an important moment for every Nigerian and Balewa was right to suggest that it was a privilege delegated to him for the good of the entire country. Nigeria would now determine what values were passed on or replaced in subsequent generations of government and society. This was a cause for celebration as much as it was a cause for serious reflection on the proper course of an independent people. Balewa went on to say that he was indebted to the people who have shared in the task of developing Nigeria politically, socially and economically, but the awe-inspiring task Nigeria faced would determine the country’s place on the international stage. It was just the beginning of a long, shared journey. Nigerians were finally in control of their future as the rightful heirs to an independent and self-governing nation.

    With independence, Nigeria was proud as a nation. The people had united to remove the colonial administration after 60 years of rule. The struggle required unity and compromise between Nigerians with very different beliefs and interests. Through national discourse and conscientious debate, new ideas began to spread throughout the country on what an independent, united Nigeria, with one national identity would look like. Lagos took a central role in developing this national identity as a main hub of government, commerce, intellectualism and fresh Nigerian ideas. The port city was incredibly valuable because of its location and huge commercial potential.

    As a colony Lagos was entirely self-supporting.¹ Thousands of Nigerians moved to Lagos to take advantage of the busy port, the massive economy that it supported and a number of other new opportunities including education which was crucial to the development of a national identity.

    In Lagos, the spread of Western education allowed for the increased transmission and discussion of new ideas and national priorities. Literacy levels rose encouraging political engagement. Within the city, media outlets began to take up new importance in the course of daily events. Residents of Lagos were especially fortunate to have so many newspapers and magazines that supported the growth and spread of national sentiments. Some of the most important news organizations in the country were created in Lagos around this time, including The Observer, Nigerian Spectator, Nigerian Pioneer, Lagos Weekly Record, and Lagos Daily News.² These newspapers gave the intellectuals in Lagos a place to follow political and social developments, but more importantly it also gave them a platform to speak their minds on the state of things and engage with their government in a meaningful way.

    As literacy and political engagement rose, so did mobility. The port in Lagos grew to allow for larger and more frequent ship dockings. The railway was extended 700 miles into the interior by independence, and the Lagos Steam Tramway opened doors for many rural Nigerians to enter into the city. These critical infrastructure developments allowed more people to travel in and out of the growing commercial center that Lagos was transforming into.

    Combined with the improved transportation developments, the spread of literacy trickled far into the corners of the country. People that worked and lived in the city could bring back their new ideas and skills to their rural homes. This empowerment led to the exponential increase in city populations across Nigeria but mainly in Lagos, with rural farmers relocating to fuel the increased rate of urbanization. This trend has continued till today because of the government’s continued dedication to improving infrastructure in Lagos. As more people came to live in Lagos, the city became a place for the start of a shared national heritage and a complicated Nigerian identity.

    The city came to represent many of the best parts of Nigeria’s progress and status. By 1965, there were at least 1.25 million people living the Greater Lagos area. Approximately 43% of Nigeria’s industries were based in Lagos and the Greater Lagos area, and the port in Lagos handled 70% of the nation’s total imports and exports. The total tonnage of goods entering and leaving the port had increased by five times in a span of less than 20 years.⁵ This was at a time before the country’s abundant stores of oil had been tapped and the nation’s economic output was more diverse. There were thousands of new immigrants because Lagos was improving the lives of its people with social services, jobs and infrastructure. The biggest power in government was the voice of the people and leaders were listening. There was no better place to make a living and be heard.

    Political parties and labor unions were useful vehicles for leaders with a vision and a commitment to uniting the masses. People were better able to choose leaders that best represented their interests. As time went on however, it was this aspect of democracy that divided the country into many fractured bodies. Once groups had been formed, majority parties could exercise disproportionate power over the minorities that had not secured power, and the minority groups soon had no way to meaningfully participate in the political dialogue. This was exacerbated by the discovery of oil and its subsequent domination of the economy. With the introduction of staggering oil revenues in the 1960s, there were new opportunities for government to be exploited by powerful players.

    Oil further reduced the effectiveness of the democratic system by directing leaders’ attentions to multinational oil companies and away from their constituents. Oil also became a source of friction between the different ethnic groups. The major sources

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