State and LGA Creation in Nigeria: Between Equity and Economic Reality

By Michael Egbebike, PhD

As Nigeria grapples with rising debt, inflation, insecurity, and widening inequality, a familiar debate has resurfaced: the creation of more states and local government areas (LGAs). At the heart of this national conversation is a legitimate grievance from the South-East, which remains the only geopolitical zone with five states and a disproportionately low number of LGAs. For many in the region, the demand for a sixth state and more LGAs is a matter of political fairness and constitutional equity. But for others, the question is more sobering: can Nigeria afford to expand its federation without first fixing its structural weaknesses?

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This op-ed argues that while the call for equity is valid, especially in the South-East, the broader push for more states and LGAs should be approached with caution, reform, and realism. Without rethinking how Nigeria funds and governs its subnational units, further creation risks deepening inefficiency, inflating costs, and exacerbating the very inequalities it seeks to correct.

1. A Federation of Unequal Parts

Nigeria’s federal structure consists of 36 states and 774 LGAs – numbers that were politically carved over decades of military rule. These figures are not merely administrative; they have profound implications for revenue sharing, political representation, and national development.

Under the current Federation Account Allocation Formula, the number of states and LGAs directly affects:

• Monthly statutory allocations,
• Representation in the National Assembly,
• Distribution of federal institutions and services,
• Even the number of polling units and electoral strength.

Yet a glance at the regional distribution reveals stark disparities:

The South-East’s underrepresentation translates to less federal revenue, fewer representatives, and limited federal presence, despite the region’s significant contributions to the national economy through commerce, remittances, and oil production. The argument for equity in state and LGA creation is, therefore, not one of sentiment but of structural justice.

2. The High Cost of Multiplication

However, equity must not blind us to economic reality. While calls for one more state in the South-East are understandable, the broader push – including proposals for 31 new states and hundreds of LGAs nationwide – poses a serious fiscal threat.

Most of Nigeria’s existing states are financially insolvent. According to the Nigerian Bureau of Statistics and several fiscal transparency reports, over 30 of the 36 states rely on federal allocation for up to 90% of their revenues. Only Lagos and, to some extent, Rivers and Ogun, generate enough internally to function independently. The rest are heavily indebted, struggle to pay salaries, and invest little in capital projects.

Creating new states or LGAs implies:

• Establishing new bureaucracies and political offices,
• Building new administrative capitals, courts, parliaments, and civil service structures,
• Inflated recurrent expenditures with minimal increase in productivity.

Local government areas fare no better. Many LGAs across the country lack running water, functional primary health centers, or equipped public schools. Their funds are often diverted or controlled through State Joint Local Government Accounts (SJLGA), a controversial system that strips them of true autonomy.

Without first fixing these underlying flaws, adding more units will multiply inefficiency rather than development.

3. The Politics of Constitutional Freeze

Making matters worse is the fact that Nigeria’s Constitution locks in the inequities of the past. The 774 LGAs listed in the 1999 Constitution reflect the preferences of past military regimes, not objective data on population, need, or performance.

Some states like Lagos have created additional LGAs (Local Council Development Areas), but these are not recognized by the Constitution and thus do not receive federal allocations. Meanwhile, Kano enjoys full federal funding for its 44 LGAs, more than double that of most southern states.

Reforming this rigid structure is difficult because any change requires constitutional amendments supported by two-thirds of the National Assembly and state legislatures-a political near-impossibility without elite consensus.

4. Restructuring vs. Multiplication

Given the current landscape, many experts argue that what Nigeria needs is not more states or LGAs, but a restructured federation. Respected voices like Olisa Agbakoba, SAN, and Governor Alex Otti of Abia State have made this point clear: rather than multiply units, Nigeria should empower existing states and LGAs with real fiscal and administrative autonomy.

Key reforms would include:

• Abolishing the State Joint LGA Account, allowing LGAs to receive and manage their funds directly,
• Devolving more powers to states in taxation, policing, education, and natural resource management,
• Linking federal allocations to performance and need, not just geography,
• Enabling states to create or merge LGAs based on capacity and population, not rigid constitutional lists.

These reforms would ensure that governance is closer to the people without creating an unwieldy and unsustainable political structure.

5. A Reasonable Middle Ground

Still, a compelling case can be made for a single additional state in the South-East, to bring parity with the other five zones. This could be a carefully planned state like Aba, Adada, or Orashi, created after thorough viability assessments, stakeholder consensus, and cost-benefit analysis.

Such a step would:

• Address long-standing regional grievances,
• Increase the zone’s voice in national affairs,
• Provide a moral balancing of the federation.

But even this must be approached cautiously. Creation must be based on capacity, not sentiment. Equity without efficiency only breeds more dependence.

Conclusion: Build Stronger Units, Not Just More Units

The debate around state and LGA creation should not be reduced to yes or no. It must be rooted in a broader vision of national development and inclusion. While historical inequities deserve correction, indiscriminate multiplication of political units is not the solution.

Nigeria must prioritize:

• Restructuring its federation for efficiency,
• Empowering its subnational units to raise and manage their own resources,
• And ensuring that equity, not quantity, guides any future administrative changes.

In the end, a just federation is not one with more states – it is one where all states and communities are empowered to thrive equally.

About the Author: Dr. Michael Egbebike is a lawyer, Environmental Scientist, Civil Engineer, Land Surveyor and Public affairs analyst, and advocate for good governance in Nigeria. A former commissioner for Environment, Dr. Egbebike now lectures pro-bono at the University of Nigeria, Enugu Campus and Nnamdi Azikiwe University Awka.