Renowned economist and Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, has argued that Nigeria’s current federal structure with 36 states and 774 local governments is unsustainable.

Speaking on Politics Today, a Channels Television programme, on Wednesday, Rewane said the country spends excessively on administration at the expense of development.

 “Nigeria cannot afford to have 36 states. It’s unviable. We spend too much money administering,” he stated.

Comparing Nigeria to California, he noted that while Nigeria is about twice the size of the U.S. state in geographical terms, it is weighed down by the high cost of governance.

Rewane cited the old Western Region, now split into several states, as an example of duplication, with each state maintaining governors, commissioners, aides, and other bureaucracies.

He suggested that Nigeria should rethink its structure and consider returning to some form of regional government to ensure efficiency and sustainability.