Sanwo-Olu seeks review of revenue sharing formula for equity, fairness

Governor Babajide Sanwo-Olu of Lagos State, on Monday made a case for the review of the revenue sharing formula to promote equity, fairness in relation to what the benefiting stakeholders contribute to the federation account.

Governor Sanwo-Olu at a two-day zonal public hearing on the review of the revenue allocation formula in the South-West organised by Revenue Mobilisation Allocation and Fiscal Commission (RMAFC),  also demanded a special status for Lagos, considering the huge financial contributions of the state to the national treasury.

Sanwo-Olu argued that the state requires a revenue formula that would increase the capacity of the state government to deliver high-quality services and dividends of democracy to Nigerians.

Sanwo-Olu stated: “I should say that it will actually be unfair to expect the state to bear this heavy burden on its own. It is, therefore, necessary to give due consideration to all the variables that support our advocacy for a Special Status.

“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 percent of the national GDP and about 10 percent of the nation’s population to continue to prosper.”

Sanwo-Olu noted that “Lagos is more than just another state in the Nigerian federation,” adding that “there is no tribe in the country that has no significant stake in the state.”

Chairman of the RMAFC, Elias Mbam, commended Gocvernor Sanwo-Olu and the Lagos State Government for accepting to host the public hearing.

In the current revenue sharing formula, the federal government (including special funds) receives 52.68 percent, state governments 26.72 per cent and local governments 20.6 percent.

Mbam disclosed that  RMAFC commenced the review of the subsisting vertical revenue allocation formula in relation to changing realities, adding that the last review was in 1992.