36 governors oppose FG’s revenue sharing formula

Kunle Awosiyan, Lagos - 11.05.2008

Governors of the 36 states of the federation have vehemently opposed the Federal Government’s procedure of sharing revenue to the various state governments, saying that the formula failed to reflect the income generated by each state to the federal purse.

The state executives, who expressed their grievances over the revenue allocation formula at the Governors Forum in Lagos, on Friday night, argued that the Federal Government should consider the comparative advantage of each state in allocating the revenue.

Speaking on behalf of the governors, the chairman of the forum, Governor Bukola Saraki of Kwara State said that each state has contributed differently into the national purse according to its strength, adding that each state should be able to have something extra based on its comparative advantage.

Corroborating Saraki, Lagos State Governor, Mr. Babatunde Fashola (SAN), said that derivation formula had always been based on comparative advantage in a true federal system of government.

He explained that the Federal Government would be encroaching on the developmental capacity of the federating units when it failed to give back to the states, the correct percentage of the income they had generated.