Special Status: Lagos Demands 1% of Nigeria’s Revenue Allocation Formula, Gives Reason
- Lagos state government has demanded a new revenue sharing formula while canvassing for a special status designation
- Governor Babajide Sanwo-Olu on Monday, October 4, asked for one per cent of share in the country's revenue allocation formula
- The southwest governor insists that the time for a review of the subsisting revenue sharing formula was long overdue
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Lagos - A report by The Punch indicates that Governor Babajide Sanwo-Olu of Lagos state demanded one per cent share in the country's revenue allocation formula.
Sanwo-Olu made the request on Monday, October 4, during a two-day southwest zonal public hearing on review of revenue allocation formula in Lagos state.
Source: UGC
While canvassing for a special status designation for Lagos state, the governor maintained that the state’s unique features and its prosperity bear on development in the southwest, Nigerian Tribune added.
He proposed that the revenue sharing formula should be 34% for federal government including 1% for FCT-Abuja, 42% for state governments, 23% for local governments and 1% for Lagos (special status) as against the current revenue allocation formula.
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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 per cent of the national Gross Domestic Product and about 10 per cent of the nation’s population to continue to prosper.”
Okowa wants NASS to uphold true federalism
Earlier, Legit.ng reported that Delta state governor, Senator Ifeanyi Okowa, called on the National Assembly to embody in the 1999 Constitution being amended, true federalism and independence of Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
The governor made the call on Monday, September 20, at a nationwide sensitization on the review of the existing revenue allocation formula held at Unity Hall, Government House, Asaba.
He explained that an independent RMAFC would carry out its functions independently, including laying its proposals directly before the National Assembly for approval.
6 states that can confidently survive without any federal allocation
Meanwhile, the Annual State Viability Index (ASVI) published by Economic Confidential has revealed some Nigerian states that can survive without the monthly federal allocations.
The ASVI measured the viability index of states using each state’s Internally Generated Revenue (IGR) as a percentage of its federal accounts allocation for the year.
States with an IGR of less than 10% of their total receipts from the federal allocations are considered insolvent.
They are Lagos, Rivers, Ogun, Kaduna, Oyo and Anambra states.
Source: Legit.ng
