Lagos Governor, Babajide Sanwo-Olu has called for a review that will allow states to get 42 percent of revenue in the Federation Account.
The governor spoke on Monday at the South-West Zonal public hearing on the Review of Allocation formula by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC).
In the current sharing formula, the Federal Government takes 52.68 percent, states 26.72 percent, local governments 20.60 percent, and 13 percent derivation for oil-producing states.
Sanwo-Olu noted that the formula which became operational about 29 years ago was long overdue for amendment.
The governor said the Nigerian fiscal federalism should be adjusted to develop more expenditure responsibilities with appropriate revenue allocation to states and LGs.
“The Lagos State Government proposed revenue allocation formula: Federal government: 34 percent, State government 42 percent, local government councils: 23 percent and Lagos State (Special Status, 1 percent).”
Sanwo-Olu said the solution will diversify and strengthen the fiscal base of the state government.
The Lagos helmsman stressed the need to reverse the age-long fiscal dominance by the federal government in order to re-establish a truly federal system.
