Governor Babajide Sanwo-Olu of Lagos State on Monday advocated an upward review to 42 per cent of the revenue accruing to states from the Federation Account.
Sanwo-Olu said that an upward review to 42 per cent would enable the states to cater for their rising responsibilities.
Sanwo-Olu made the call at a two-day South-West Zonal public hearing on Review of Allocation formula by the Revenue Mobilization Allocation and Fiscal Commission (RMADC).
The News Agency of Nigeria (NAN) reports that the two-day event, held at Victoria Island, Lagos, had in attendance all the representatives of the South-West states.
Under the current revenue sharing formula, the Federal Government takes 52.68 per cent, the states 26.72 per cent and the local governments, 20.60 per cent, with 13 per cent derivation revenue going to the oil-producing states.
Sanwo-Olu stated that the present revenue sharing formula among the tiers of government which became operational about 29 years ago was long overdue for amendment.
“Nigerian fiscal federalism should be adjusted to develop more expenditure responsibilities with appropriate revenue allocation to lower levels of government.
“So that federal government will focus on matters of national concern like security and defense, among others.
“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).
“The solution is to diversify and strengthen the fiscal base of the state government.
“The need to reverse the age-long fiscal dominance by the federal government in order to re-establish a true federal system is strongly recommended.