Lagos State government has said it would continue to push for a special status for the state in the sharing formula of revenue allocation by the federal government.
The stakeholders who met at the state capital, Ikeja argued that the time for a review of the subsisting revenue sharing formula was long overdue.
The Stakeholders meeting with representatives of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), including members of the State Executive Council, Lawmakers, Permanent Secretaries and Local Government Chairmen, among others was organised in line with a recent call in a publication made by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) under the caption ‘’Call For Memoranda On The Review of The Revenue Allocation Formula’’.
Speaking at the forum, the state’s commissioner for Finance, Dr. Rabiu Olowo, pointed out that the effort was in proactive move to gather data towards an upcoming Southwest regional stakeholders’ meeting on the review of the subsisting Revenue Allocation formula.
He argued that the revenue allocation formula inherited from the military was skewed largely towards the Federal Government which, according to him, is inconsistent with present realities.
Arguing that the last review dated back to 1992, he mentioned that the prevailing situations have outgrown the subsisting provisions with variables which call for a review of the allocation formula.
According to him, “at this point in the national life,” it was important that contributions be made to raise submissions to justify why the review should be effected on articulating positions in asking for a fairer allocation formulas.
Olowo argued that with the status of Lagos as the economic nerve centre of the Country, demands for a special status to Lagos had been long overdue.
“The constitutional mandate to review the Revenue Allocation formula is vested in the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
“Unfortunately, since the establishment of RMAFC in 1989, the last time we had a successful review was in 1992 and several other attempts to review it within the last twenty nine (29) years have proved abortive!
“The current revenue allocation formula is far from being realistic. For instance, the number of states have increased from 30 to 36 states, the number of local governments increased from 589 to 774 local governments and, in Lagos, 37 LCDAs have been created to bring government closer to the grass root. The Constitution prescribes a minimum limit of 5years to operate an agreed formula before further review.