HomeNEWSLagos Demands Review Of Revenue Formula, Seeks Special Status

Lagos Demands Review Of Revenue Formula, Seeks Special Status

Lagos State Government has demanded a new revenue sharing formula that is fair, equitable and reflects the contribution of stakeholders to the common purse.

Governor Babajide Sanwo-Olu made the demand on Monday while calling for a special status for Lagos over what he describes as its huge financial obligations to the national coffers.

Speaking during 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), Sanwo-Olu said the state also wanted a revenue formula that enhances the capacity to deliver high-quality services and dividends of democracy to Nigerians.

“I should say that it will actually be unfair to expect the state to bear this heavy burden on its own. It is therefore necessary to give due consideration to all the variables that support our advocacy for a Special Status,” he said.

“The call for a special status for Lagos is not a selfish proposition; it is in the best interest of the country and all Nigerians, for Lagos which accounts for about 20 percent of the national GDP and about 10 percent of the nation’s population to continue to prosper.”

According to Sanwo-Olu, 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 also appealed to all stakeholders to approach the review process with open minds.

On his part, RMAFC Chairman, Elias Mbam, lauded Sanwo-Olu and the Lagos State Government 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 equally 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 per cent and LGAs receive 20.6 percent.

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