LAGOS STATE GOVERNOR SAYS DEPENDENCY ON FEDERAL ALLOCATION MUST DECREASE

In an opening ceremony of the Federal Account Allocation Committee, FAAC, retreat held in Lagos, Lagos State Governor, Babajide Sanwo-Olu on Monday 17, asked other state governments to look for other sources to generate more revenue rather than relying on federal allocations to fund huge responsibilities in their states.

The retreat was themed: Efficient Federation Revenue Allocation as a Nexus for National Economic Diversification. Sanwo-Olu who was represented by his deputy, Dr. Obafemi Hamzat.

He emphasized that the era of relying entirely on federal allocation was over in the country. Hamzat added that, Nigerian government needs to expand it’s source of revenue and all hands must be on deck to boost revenue along the line of manufacturing.

Hamzat stated the importance for every state to find ways in expanding and reducing their dependence on federal allocation. He said, “To make revenue sharing formula fairer, equitable, and more development-oriented, there is the need to attach increased value to population density as a critical factor, in addition to the nominal population figure.”

Also speaking, The Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, who was represented by the Permanent Secretary in the Ministry, Mahmud Dutse, said the Federal Government has embarked on “policies and measures to improve the fiscal health of the federal government and states, states measures includes various financing options made available in the form of bailout funds, budget support facility, and relaxation of conditions for borrowing and ease of doing business.

Over the years, governments have been committed to the efficiency of our common resources through fair, just and equitable distribution of the federation revenue to the three tiers of government as monthly statutory allocations.”