The Lagos State Government has called for a review of the revenue allocation formula, saying the one currently operating in the country is unrealistic.
The Commissioner for Finance, Dr. Rabiu Olowo, stated this on Tuesday at a sensitization workshop on 2021 Revenue Allocation Formula Review held in Agidingbi, Ikeja.
Olowo gave his address at the stakeholders’ workshop organized by the Ministry of Finance with representatives of the Revenue Mobilisation Allocation and Fiscal Commission, members of the State Executive Council, lawmakers, permanent secretaries, and local government chairmen, among others.
He said, “The current revenue allocation formula is far from being realistic as the country has evolved over the years. The number of states has increased from 30 to 36; the number of local governments increased from 589 to 774 LGAs and in particular, in Lagos State, we have added 37 Local Community Development Areas to bring the government closer to the people.”
Olowo added that RMFAC had been unable to review the allocation in the last 29 years due to poor execution.
“The constitution mandates that the review of revenue allocation formula is vested in RMFAC. However, since the establishment of the commission in 1989, the last time we successfully reviewed the revenue allocation was in 1992. Many other attempts of this body to review this in the last 29 years have proved abortive. There have been many recommendations, but poor execution,” he said.
The Federal Commissioner representing Lagos State, RMAFC, Dr. Adekunle Wright, said, “In line with the mandate of the constitution and in view of the changing socio-economic-political dynamics of the nation, the commission has commenced full-scale engagement of representatives of various stakeholders in the process of fashioning a new revenue allocation formula for the country.”