The Ogun State Governor, Dapo Abiodun, has canvassed an upward review of states’ revenue allocation sharing formula from 26.7 percent to 45 percent in order to allow more developments in the states.
Penpushing reports that Abiodun made the call on Monday while speaking at the South West Zonal Public Hearing on Review of Revenue Mobilisation Allocation and Fiscal Commission, held in Lagos State, noting that
The Governor, represented by Commissioner for Finance and Economic Adviser, Dapo Okubadejo empjasised that the revenue sharing formula should be reworked to stand as 30 percent to Federal; 45 percent to states; and 25 percent to Local governments, as against the current stand of 52.68, 26.72, and 20.60 percent respectively.
Penpushing further reports that Abiodun equally noted that there should be a download review of the allocation to the federal government to 30 percent, noting that the current formula is no longer in tune with the economic realities.
The Governor argued that the allocation is forestalling the development of states and local government calling for the amendment of Exclusive List to allow each tier of government concentrate on areas that will better touch the lives of the people.
Penpushing also reports that Abiodun, who attributed the current imbalance in the revenue sharing formula to the provisions of the 1999 Constitution, particularly the Exclusive Legislative List, maintained that states have increasingly borne significant additional increase in managing issues relating to maintenance peace, security, education, infrastructural development, and social welfare programmes, among others.
“Given that the state and local government are closer to the citizenry and can meet their needs more accurately, it is imperative to consider an increase in the allocation to the states and local governments’,he stated
“In addition to the above, revenue allocation should be reviewed and each tier of government should be funded according to the functions they perform. This is to enable that states can carry out expenditure functions within their scope and jurisdiction thus improve the economic growth of the States and nation in general”, Abiodun added
The Governor, however, called for a review of the Social Development Factor of the allocation formula in line with modern day realities in areas of education, health and population, saying that population density should replace population and land mass as independent factor in revenue allocation”.
Penpushing reports that he sought the cooperation of the National Assembly to ensure passage of the bill on new Revenue Allocation Formula whenever it is presented before the lawmakers.
The Lagos State Governor, Babajide Sanwo-Olu, while declaring open the forum called on the Federal government to accord the state a special status, because of its pivotal role to the development of Nigeria as a whole.
Penpushing further reports that the governor added that for the country to attain greater economic prosperity there is need for a just, equitable and very straight forward revenue sharing formula.
The dignitaries at the event include Governors of all the South West States, represented by their Commissioners for Finance, Speaker, Ogun State, House of Assembly, Olakunle Oluomo, Commissioner for Local Government and Chieftaincy Affairs, Afolabi Afuape, Senior Special Assistant to the Governor on Revenue Assurance, Seyi Ogunseye, Permanent Secretary, Ministry of Finance, Alhsji Hassan Adekunle, and his Local Government and Chieftaincy Affairs counterpart, Kola Fagbohun, among others.
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