Lagos Governor, Babajide Sanwo-Olu has called for a review that will allow states to get 42 per cent of revenue in the Federation Account.
The governor spoke on Monday at the South-West Zonal public hearing on Review of Allocation formula by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC).
In the current sharing formula, the Federal Government takes 52.68 per cent, states 26.72 per cent, local governments 20.60 per cent and 13 per cent derivation for oil producing states.
Sanwo-Olu noted that the formula which became operational about 29 years ago was long overdue for amendment.
The governor said the Nigerian fiscal federalism should be adjusted to develop more expenditure responsibilities with appropriate revenue allocation to States and LGs.
“The Lagos State Government proposed revenue allocation formula: Federal government: 34 per cent, State government 42 per cent, local government councils: 23 per cent and Lagos State (Special Status, 1 per cent).”
Sanwo-Olu said the solution will diversify and strengthen the fiscal base of the state government.
The Lagos helmsman stressed the need to reverse the age-long fiscal dominance by the federal government in order to re-establish a true federal system.