Babajide Sanwo-Olu, the governor of Lagos, has called for a review that will allow states to receive 42% of revenue in the Federation Account.
The governor addressed during the South-West Zonal public hearing on the Revenue Mobilization Allocation and Fiscal Commission’s review of the allocation methodology on Monday (RMAFC).
In the current arrangement, the federal government gets 52.68 percent, states get 26.72 percent, local governments get 20.60 percent, and oil-producing states get 13 percent.
Sanwo-Olu stated that the formula, which has been in use for nearly 29 years, was long overdue for revision.
According to the governor, Nigeria’s fiscal federalism should be tweaked to establish additional expenditure responsibility while allocating suitable revenue to States and LGs.
“The Lagos State Government recommended the following revenue allocation formula: 34% for the federal government, 42% for the state government, 23% for local government councils, and 1% for Lagos State (Special Status).”
The approach, according to Sanwo-Olu, will diversify and enhance the state government’s revenue foundation.
In order to re-establish a real federal system, the Lagos governor emphasized the necessity to reverse the federal government’s long-standing fiscal supremacy.