The Lagos State Governor, Babajide Sanwo-Olu has issued for a 42% revenue share to states from the Federation Account.
This was made known by the Governor on Monday at the two-day South-West Zonal public hearing on the Review of Allocation formula by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC).
The Governor also established that the increased formula would drive states to handle their finances, as the present model only gives states 26.72%, while the FG takes 52.68%, citing that the model needs to be reviewed.
Governor Sanwo-Olu said, “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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