Governor Babajide Sanwo-Olu of Lagos State on Monday advocated an upward assessment to 42 per cent of the income accruing to states from the Federation Account.
Sanwo-Olu stated that an upward assessment to 42 per cent would allow the states to cater for his or her rising duties.
Sanwo-Olu made the decision at a two-day South-West Zonal public listening to on Review of Allocation components by the Revenue Mobilization Allocation and Fiscal Commission (RMADC).
The News Agency of Nigeria (NAN) studies that the two-day occasion, held at Victoria Island, Lagos, had in attendance all of the representatives of the South-West states.
Under the present income sharing components, the Federal Government takes 52.68 per cent, the states 26.72 per cent and the native governments, 20.60 per cent, with 13 per cent derivation income going to the oil-producing states.
Sanwo-Olu acknowledged that the current income sharing components among the many tiers of presidency which grew to become operational about 29 years in the past was lengthy overdue for modification.
“Nigerian fiscal federalism should be adjusted to develop more expenditure responsibilities with appropriate revenue allocation to lower levels of government.
“So that federal government will focus on matters of national concern like security and defense, among others.
“The Lagos State Government proposed revenue allocation formula: Federal government: 34 per cent, State government 42 per cent, local government councils: 23 per cent and Lagos State (Special Status, 1 per cent).
“The solution is to diversify and strengthen the fiscal base of the state government.
“The need to reverse the age-long fiscal dominance by the federal government in order to re-establish a true federal system is strongly recommended.
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“It is the state’s position that state government should be granted the highest share of 42 per cent, while the share of the Local government be increased to 23 per cent since both tiers of government are closer to the people,” he stated.
The governor identified that there was a necessity for efficient fiscal legal guidelines that may guarantee a framework for helpful and dynamic intergovernmental fiscal relations.
“This will help in nurturing strong, transparent, efficient and independent fiscal institutions that will also help in nurturing strong transparent, efficient and independent fiscal institutions.
“This will further ensure accountability and proactively address emerging fiscal challenge in the public sector.
“It is the position of Lagos State Government that State Governments should share 42 per cent of revenue accruing to the Federation Account.
“In addition to the existing items on the concurrent legislative list, the Federal and State government should collectively share the following responsibilities:
“Regulation of labour, mines and mineral, social security and statistical system (census, birth and death etc).
“Guidelines and basis for minimum education, business registration, price control, national parks, fishing and fisheries,”he stated.
Sanwo-Olu added: “It is the position of Lagos State that state government should take 42 per cent from the Federation Account and handle the remaining items other than those specifically listed above.
“It is the position of the Lagos State government that Local Government should take 23 per cent and collaborate with the state government in service delivery
“The Derivation and Ecological fund should be de-centralised such that each federation unit will have access to its own reserve whenever the needs arise.
“In other words, the 1 per cent allocated to the Federal Government in respect of the Derivation and Ecological Fund should be deducted from the Federal Government’s share of Derivation and Ecological Fund will now stand at 1.72 per cent.
“The proportion allocated to Stabilization Fund should be increased from 0.5 to 1 per cent. This amount should be deducted from the percentage hitherto allocated to special fund on the development of natural resources,”he stated.
Sanwo-Olu additionally stated that the Federal Government ought to take 34 per cent from the Federation Account and focus completely on protection, exterior affairs, worldwide commerce, forex and banking, change management and federal trunk roads.
“Others are: shipping, elections, immigration, citizenship, nuclear energy, diplomatic and trade representatives, public debt of the federation, telecommunications, insurance, inter state aviation and railways, meteorology, maritime, shipping and navigation,”he stated.
The Federal Commissioner, Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Dr Adekunle Wright, stated the 2 days brainstorming session on how to make sure equitable distribution of Nigeria’s commonwealth would have optimistic impacts.
“Lagos as much as we know in per square meter is the smallest in Nigeria, but highest in the number of people per square meter, all of these we are taking into consideration and take on board.
“The revenue that Nigeria generates belong to Nigerians, the revenue acruable in Nigeria belong to all, so all of these things have been taking into consideration to ensure fairness.
“We want Nigerians to give us a chance that we are going to do it in a manner that will be fair, equitable and just,”he stated.
Speaking, Commissioner for Finance, Dr Rabiu Olowo, stated the state was proposing the supply for Special Economic Status and a Review of Revenue Allocation in assist of the state.
According to him, It is essential that federal authorities assessment the income allocation components of Lagos State due to the excessive fee of each day inflow of inhabitants into the state.
“Lagos State is the smallest within the nation, however accommodate 10 per cent of the entire inhabitants.
“Due to the each day inflow, there may be want for federal assist. Also the state is shouldering so lots of the Federal duties.
“Therefore, according to present realities, it is extremely necessary that the federal authorities assessment the income allocation components.
He famous that the present income allocation components had not been reviewed within the final 29 years versus the structure which acknowledged that it must be reviewed each 5 years
He, due to this fact, expressed appreciation to the Revenue Mobilization and Allocation Fiscal Commission for making it vital for the discourse on the assessment to happen.
He stated: “There is an aligned place by all stakeholders that the income allocation components must be reviewed in assist of the state and native authorities.
“This is as a result of they’re the closest authorities to the folks.
(NAN)
Vanguard News Nigeria
