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Nairametrics
Home Business News Politics

Revenue allocation: Kano and Lagos demand 1% in Revenue Allocation Formula

William Ukpe by William Ukpe
November 24, 2021
in Politics, Spotlight
Kano state governor sends N33 billion supplementary budget to State House of Assembly
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The Governor of Kano state declared that due to the size of Lagos and Kano states, both states are demanding 1% in Nigeria’s new revenue allocation formula and have submitted proposals to the federal government.

This was disclosed by Governor Abdullahi Ganduje of Kano State, in a statement signed by the Chief Press Secretary (CPS) to the governor, Mr Abba Anwar, issued on Tuesday in Kano.

Both Governors discussed this proposal in a meeting with the Lagos State Governor, Babajide Sanwo-Olu, during a condolence visit over the death of Aliko Dangote’s brother, Sani Dangote.

Read: Lagos VAT bill: LGAs want 50-50 sharing formula with state government

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What the Kano State Governor said

“Looking at the population size of Kano and Lagos states and other similarities of megacities, both states demand 1 per cent in the new nation’s revenue allocation formula. We have already made our submissions,” Ganduje said.

He also added that both states also have 24 legislators, each, in the House of Reps and were megacities, adding that: “While Lagos is the most populous city in Nigeria and in West Africa, Kano is the second after Lagos. We have similarities and we also have the same problems.

“Problem of managing population, problems of providing social services to people, and you cannot determine who will use your facilities, your services because people are coming into our cities for almost 24 hours.

Read: North Central leaders propose 35% revenue allocation to states 

“Every second, people are entering the two cities of Kano and Lagos, and you have no control over that. They also have to get security services.”

He added that since there is now an attempt to review the revenue formula in Nigeria, Lagos and Kano are demanding 1 per cent, which will enable them to take care of the circumstances of megacities.

In case you missed it

Recall Nairametrics reported last month that North Central stakeholders proposed a 39:35:26% revenue sharing formula for the three tiers of government in the country.

Kogi State Governor, Yahaya Bello said, “We can no longer deny that a comprehensive review of RAF currently in use in Nigeria has become overdue.

“Currently, the Federal Government takes 52.68%, the 36 states and the FCT split 26.72% and the local government councils make do with 20.60%.

“The nine oil-producing states receive an additional 13 per cent as derivation revenue which is distributed among them depending on the actual contribution of each to crude oil receipts.

Nairametrics also reported earlier that the Lagos State Governor, Babajide Sanwo-Olu called for a 42% revenue share model to states from the Federation Account, during a two-day South-West Zonal public hearing on the Review of Allocation formula by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC).

Tags: Revenue Mobilization Allocation and Fiscal Commission (RMAFC)
William Ukpe

William Ukpe

For further inquiries about this article contact: Email: william.ukpe@nairametrics.com or outreach@nairametrics.com. Twitter: @_sirwilliam_ @nairametrics.

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