The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has given assurance that the proposed review of allocation sharing formula will address agitations of state government and local governments.
The Federal Commissioner representing Lagos State in RMAFC, Dr Adekunle Wright, and the Director, Inland Revenue Department, RMAFC, Udodirim Okongwu, gave the assurance at the Pre South West stakeholders’ sensitisation meeting on 2021 revenue allocation formula review, held in Lagos.
Wright said in view of the changing situation and demands, the commission has been prompted to host stakeholders across the federation towards reviewing the revenue formula in the country.
According to him, the Commission was desirous to ‘within the shortest possible time’ come up with a feasible review for a workable formula that reconcile with present realities.
Explaining the expectations from the stakeholders in respect of the proposed review formula, Okongwu said the commission looks towards arriving at a fair, just and equitable revenue formula.
She mentioned that the biggest challenge was that there is an absence of explicit vertical sharing factors in the constitution, against the horizontal factors, which according to her, made it problematic to come with fair, just and equitable formula.
In his keynote address at the meeting, Lagos State Commissioner for Finance Dr Rabiu Olowo mentioned that the effort was a proactive move to gather submissions towards the upcoming South West regional stakeholders’ public hearing on the review of the subsisting revenue allocation formula.
He argued that the revenue allocation formula inherited from the military was skewed largely towards the Federal Government which, according to him, is inconsistent with present realities.
Arguing that the last review dated back to 1992, and all efforts made for updates in last 29 years have been stalled, he mentioned that the prevailing situations have outgrown the subsisting provisions with variables which call for a review of the allocation formula.
In his submission, the state’s Commissioner for Economic Planning and Budget, Mr Sam Egube, said ‘Lagos is a significant national asset,’ not just for Lagosians but for national development.
Egube said with such indices as Lagos’ extremely high population density; a home to economic drivers; hosting 70 per cent of sea and air movements in the country, the state deserves a special status.
He further argued that the continental free trade agreement holds bearing to the status of Lagos for its effectiveness.
‘If it is good for Lagos, it certainly will be good for Nigeria,’ he said, arguing that the call for special status for Lagos supersedes native expression but the national character of the State.
The Secretary, Chair of Chairmen of Local Governments in the state, Ajala Razak, of Odi Olowo LGA, said though the fundamental necessity of the local governments was to bring government closer to the people, the subsisting order defies the realities.
Arguing that amendments have not been made to reflect the increase of local governments in the country to 774, he mentioned that the wide gap between the ‘haves (privileged) and have nots (less privileged)’ was too wide and demands deliberate efforts to address the situation to avoid socio-economic nuisances.
