To enable Local Government Areas (LGAs) which are closer to the people, make a meaningful impact, 43 per cent of revenue generated from their localities should be given to them, the Head of Alter Consult, Friday Agbo, has said.
Speaking during a session on “An Alternative Model on Restructuring Taxation Tool for Economic Diversity and Good Governance”, in Kaduna, Mr. Agbo said every LGA was unique and had something to offer if allowed to develop its potential.
He insisted that 43 per cent of the Value Added Tax (VAT) or revenue should go to the local government areas and that if this was done, the management and staff of LGAs would be more committed and ensure that the businesses were thriving.
Agbo explained that, “33 per cent of the VAT and revenue collected from LGAs should go to the state governments, while the FG should get 23 per cent, with one per cent for the Central Bank of Nigeria (CBN).”
He stressed that LGAs should benefit from any activity in their areas despite where the head office of the business outfit was located.
The expert was optimistic that the LGAs could on their own survive by developing resources in their areas.