Babajide Sanwo-Olu, governor of Lagos state, says there is
need for a new revenue sharing formula that is fair and equitable, reflecting
the contribution of stakeholders to the common purse.
The governor also called for a special status for Lagos over
its “huge financial obligations” to the national coffers.
Sanwo made these remarks at the opening of a two-day
South-west zonal public hearing on the review of the revenue allocation formula
organised by Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), on
Monday, in Lagos.
The governor added that the states also wanted a revenue
formula that enhances the capacity to deliver high-quality services and
dividends of democracy to Nigerians.
According to him, the truth remains that the review of the
current formula is long overdue, as the prosperity of Lagos State directly or
indirectly has its multiplying effect on the south-west region and the entire
country as a whole.
“The best way to guarantee national progress and development
is by paying attention to subnational development because the national is a
summation and a reflection of the subnational,’’ he said.
Sanwo-Olu re-emphasised the request by Lagos state to be
accorded “Special Status’’.
“Lagos State was the epicentre for COVID-19, the same way it
was for the Ebola virus some years ago.
“The management of these unforeseen occurrences comes with
huge responsibilities and financial commitments on the part of the state
government.
“Although we have put that experience behind us and forged
ahead, the reality of these unfortunate incidents remains with us; resources
that should be committed to other areas of need are now being used for the
restoration of damaged public facilities.
“It will be unfair for Lagos State to be left alone to bear
these huge expenses without assistance from the centre.
“COVID-19 pandemic is another issue that has once again
supported the justification for Lagos State to be accorded the privilege of
special status.
“As much as this affects the entire country, it is a fact
that the degree of the havoc caused by this virus differs from state to state,”
the governor added.
He added that the call for Lagos State to be accorded
special status was not a selfish proposition.
“It is in the best interest of the country and all Nigerians
for Lagos state, which accounts for about 20 per cent of the GDP and about 10
per cent of the nation’s population to continue to prosper,” he said.
Sanwo-Olu further explained that Lagos is more than just
another state in the Nigerian federation as there is no tribe in the country
that has no significant stake in the state.
The governor appealed to all stakeholders to approach the
review process with open minds.
In his address, Elias Mbam, chairman of the RMAFC, lauded
Sanwo-Olu and Lagos State for accepting to host the public hearing.
Mbam said RMAFC began the process of reviewing the
subsisting vertical revenue allocation formula in line with changing realities
as the last review was done in 1992.
He enjoined stakeholders to participate actively and
effectively as the commission would take all views and recommendations into
consideration.
In the current sharing arrangement, the federal government
(including special funds) is entitled to 52.68 percent while state governments
get 26.72 percent and LGAs receive 20.6 percent.
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