Ogun demands 45% for states in allocation sharing formula

Ogun State Governor, Dapo Abiodun has called for an upward review of States revenue allocation sharing formula from 26.7 per cent to 45 per cent.

Under the current revenue sharing formula, the Federal Government takes 52.68 per cent, the states 26.72 per cent and the local government councils, 20.60 per cent with 13 per cent derivation revenue going to the oil nine producing states.

• PODCAST: How refusal to use pedestrian bridges costs many Nigerian lives
• Corruption leaks: Pressure mounts on Buhari to probe Bagudu, Obi, others

But Abiodun, in canvassing for the upward review, submitted that the current formula is no longer in tune with economic realities 

He said the increase would  allow for “more developments in the states.”

Abiodun, who was represented by his Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo, said this 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 per cent. 

Making the proposal, the Governor said the formula should be reworked to stand as 30 per cent to Federal; 45 per cent to states; and 25 per cent to local governments, as against the current stand.

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

The governor, 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 increases in managing issues relating to maintaining peace, security, education, infrastructural development, and social welfare programmes, among others. 

The State Government further called for a review of the Social Development Factor of the allocation formula in line with modern-day realities areas of education, health and population, saying, “population density should replace population and landmass as an independent factor in revenue allocation”