RMFAC: Abiodun Canvasses Increment In States' Allocation To 45 Percent - THE DAILY CRUCIBLE

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Tuesday, October 5, 2021

RMFAC: Abiodun Canvasses Increment In States' Allocation To 45 Percent

                          •Gov Abiodun


The Daily Crucible | Published Tuesday,  October 5, 2021


Ogun State Governor, Prince Dapo Abiodun, has canvassed an upward review of States revenue allocation sharing formula from 26.7 percent to 45 percent in order to allow more developments in the states. 

The State Governor, Prince Dapo Abiodun, who was represented by his Commissioner for Finance and Chief Economic Adviser, Mr. Dapo Okubadejo, canvassed the position in Lagos while speaking at the South West Zonal Public Hearing on Review of Revenue Mobilisation Allocation and Fiscal Commission.

Abiodun also noted that there should be a downward review of the allocation of the federal government to 30 percent. 

Making the proposal, the Governor said the formula should be reworked to stand as 30 percent to Federal; 45 percent to states; and 25 percent to Local governments, as against the current stand of 52.68, 26.72, and 20.60 percent respectively.

Noting that the current formula is no longer in tune with economic realities, the Governor said the allocation is forestalling the development of States and local governments.

Abidoun also wants the Excusive List amended to allow each tier of government concentrate on areas that will better touch the lives of the people. 

Governor Abiodun, who attributed the current imbalance in the revenue sharing formula to the provisions of the 1999 Constitution, particularly the Exclusive Legislative List, maintained that States have increasingly borne significant additional increase in managing issues relating to maintenance peace, security, education, infrastructural development, and social welfare programmes, among others. 

"Given that the State and Local governs are closer to the citizenry and can meet their needs more accurately, it is imperative to consider an increase in the allocation to the States and Local governments. 

"In addition to the above, revenue allocation should be reviewed and each tier of government should be be funded according to the functions they perform. This is to enable that States can carry out expenditure functions within their scope and jurisdiction thus improve the economic growth of the States and nation in general", Abiodun said. 

The State Government further called for a review of the Social Development Factor of the allocation formula in line1 with modern day realities areas of education, health and population, saying, "population density should replace population and land mass as independent factor in revenue allocation"

He therefore sought the cooperation of the National Assembly to ensure passage of the bill on new Revenue Allocation Formula whenever it gets to them.

Declaring the forum opened, Lagos State Governor, Mr. Babajide Sanwo-Olu, called on the Federal government to accord the State a special status, because of its pivotal role to the development of Nigeria as a whole.

The Governor added that for the country to attain greater economic prosperity, there is need for a just, equitable, and very straight forward revenue sharing formula.

Dignitaries at the event include Governor's of all the South West States, represented by their Commissioners for Finance.

Others were the Speaker, Ogun State, House of Assembly, Rt. Hon. Olakunle Oluomo, Commissioner for Local Government and Chieftaincy Affairs, Hon. Afolabi Afuape, Senior Special Assistant to the Governor on Revenue Assurance, Mr. Seyi Ogunseye, Permanent Secretary, Ministry of Finance, Alh. Hassan Adekunle, and his Local Government and Chieftaincy Affairs counterpart, Mr. Kolawole Fagbohun, among others.

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