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Fiscal Federalism: Lagos Demands One Percent in Revenue Allocation Formula

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Sanwo-olu - Investorsking

Lagos State Government on Monday demanded a one percent share in the revenue allocation formula, maintaining that the special status of the State and its prosperity directly or indirectly have multiplying effects on the South-West region and the entire country.

Lagos State Government also proposed that the revenue sharing formula should be 34 percent for Federal Government including one percent for FCT – Abuja, 42 percent for State Governments, 23 percent for Local Governments and one percent for Lagos State (Special Status) as against the current revenue allocation formula, which are 52.68 percent, 26.72 percent and 20.60 percent for Federal Government, 36 state governments and 774 local governments respectively.

The demands were made by Lagos State Governor, Mr. Babajide Sanwo-Olu at the opening of a two-day South-West Zonal Public hearing on the review of revenue allocation formula by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) held on Monday at Lagos Continental Hotel, Victoria Island.

Governor Sanwo-Olu in a memorandum on review of Revenue Allocation Formula he submitted to the RMAFC declared that allocating one percent for Lagos State (Special Status) and allowing the three tiers of government to share 99 percent in a new revenue sharing formula is very straightforward, self-justifying and in no way controversial.

He said the review of the current revenue allocation formula is long overdue, noting that the best way to guarantee national progress and development is by paying attention to sub-national development because the national is a summation and a reflection of the sub-national.

He also reiterated the call for Lagos State to be accorded special status in recognition of its huge financial commitments to infrastructure and provision of basic amenities for the increasing population of its residents, as well as its preeminent contribution to the national coffers.

He said the call, which has been re-echoed at different fora and at various levels and tiers of government, cannot be overemphasized, especially against the backdrop of the current economic situation of the country, the aftermath of the EndSARS protests a year ago, and the devastating effects of the COVID-19 pandemic, for which Lagos has been the national epicenter.

“Our demand is a sharing formula that is just, fair and equitable; reflecting the contribution of stakeholders to the common purse, and also one that enhances the capacity of state and local governments to deliver high-quality services and the full dividends of democracy to the greatest number of our people.

“Lagos State is no doubt the nation’s commercial capital, and population center. The level of funding required to service the State’s social and public infrastructure is so significant that it will be difficult for the State to bear the burden for much longer under the present arrangement.

“I should say that it will actually be unfair to expect the State to bear this heavy burden on its own. It is, therefore, necessary to give due consideration to all the variables that support our advocacy for a Special Status.

“The call for a special status for Lagos is not a selfish proposition; it is in the best interest of the country and all Nigerians, for Lagos which accounts for about 20 percent of the national GDP and about 10 percent of the nation’s population to continue to prosper,” the Governor said.

Justifying the need for Lagos State to be accorded special status, Governor Sanwo-Olu said Lagos is more than just another state in the Nigerian federation, noting that there is no tribe in the country that has no significant stake in Lagos State.

He said: “As the former capital of the country for 77 years (compared to the 30 years that Abuja has been the Federal Capital Territory), Nigeria’s largest metropolis still bears the heavy brunt of being home to all Nigerians; irrespective of age, class, gender, religious affiliation or tribe.

“There are several statistics that show the number of people that comes into Lagos every day, however, there are clear indications that most of these people migrate with the intention to make Lagos their new home and in pursuit of personal dreams due to the opportunities the city-state seemingly possesses, and this portends additional responsibilities on the government.

“Additionally, Lagos still harbors a huge number of federal establishments which could not be moved to Abuja. These include military cantonments and barracks, Police, Customs, Immigration, Civil Defence, Prisons, Road Safety and security/intelligence establishments.

“There are several reasons to justify the call for a special status for Lagos apart from the aforementioned factors and by extension, a review of the Revenue Allocation Sharing Formula.”

Governor Sanwo-Olu also said that it would be unfair for Lagos State to be left alone to bear the burden of the massive destruction experienced by the State during the EndSARS protests hijacked by hoodlums and the COVID-19 pandemic without assistance from the Centre.

“This month marks one year after the massive destruction experienced by the State in the violence that accompanied the hijacking of the EndSARS protests. Public buildings were burnt down, and historical infrastructure was destroyed.

“Although we have put that experience behind us and forged ahead, the reality of this unfortunate incident remains with us; resources that should be committed to other areas of need are now being used for the restoration of these public facilities. It will be totally unfair for Lagos State to be left alone to bear these huge expenses without assistance from the Centre.

“COVID-19 pandemic is another issue that has once again, supported the justification for Lagos to be accorded the privilege of special status. As much as this affects the entire country, it is a fact that the degree of the havoc caused by this virus differs from State to State.

“Lagos was the epicenter for this virus, the same way it was for the Ebola virus some years ago. The management of these unforeseen occurrences comes with huge responsibilities and financial commitments on the part of the State Government,” he said.

Governor Sanwo-Olu commended the Chairman and members of RMAFC for taking a bold step, which he believed will “result in a fundamental alteration of the current revenue sharing formula, in favour of one that is truly fair and equitable, and that takes into full consideration the specific and more pragmatic fiscal contexts of the sub-national governments of the Federation.”

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2023 General Election: INEC Promises to Apply Electoral Laws Without Fear, Favour

INEC has said that it will apply the laws, especially the Electoral Act, of 2022 without fear.

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The Independent National Electoral Commission (INEC) has said that it will apply the laws, especially the Electoral Act, of 2022 without fear or favour to ensure free, fair, valid, thorough, and transparent elections in 2023.

The electoral body affirmed that it was important for all stakeholders, especially the political parties to note the crucial features introduced by the new Electoral Act 2022 and the likely implications of those changes on the approaching elections.

INEC chairman, Prof. Mahmood Yakubu, revealed this at the 4th Abubakar Momoh Memorial Lecture with the theme, “Electoral Act 2022: Imperatives for Political Parties and the 2023 General Election,” in Abuja on Wednesday.

The helmsman of the Commission identified some of the vital changes put forward by the new electoral law to include: The conduct of early party primaries, technological differences in the electoral process, the commission’s power to evaluate the decision of returning officers, and over-voting based on the number of accredited voters.

Represented by the chairman of the Board of Electoral Institute, Abdullahi Zuru, the INEC chairman confirmed that the umpire has no chosen party or candidate and it shall only guarantee that valid votes count and the winners are determined solely by the voters.

The usage of electronic devices such as Bimodal Voters Accreditation System (BVAS), INEC Voter Enrolment Device (IVED), INEC Results Viewing Portal (IRev), and other technological devices, are now lawfully allowed in the accreditation procedure for voters, collation of results and in the general conduct of elections.

“Please be guaranteed that these innovations are aimed at deepening the Electoral practice in our country and their optimal achievement in the just completed gubernatorial election in Ekiti and Osun States is an expressive testimony to their electoral significance. We shall only do more to strengthen their deployment in our election,” he said.

He expressed hope that the political parties would be devoted to assuring that the 2022 general election is “devoid of intentional violations to the 2022 Electoral Act, basically by enabling the electoral process to run smoothly thereby, cultivating a rich democratic culture and satisfactory election outcome.”

Yemi Akinseye-George, the guest speaker, put forward that politics is not anarchy and a game of disorderliness.

According to him, “Politics is no anarchy; it is not disorderliness; it must be punctuated by justice, fairness and orderliness.”

The professor of law also emphasized that politics must not be seen as a dirty game, indicating optimism that the 2023 general election would hold against all odds and referring to the passion shown for voter registration as an indicator of the fact.

While claiming that political parties must obey their own rules, he said: “the Supreme Court has agreed on numerous cases that political parties must heed their constitutions as the court will not permit them to act arbitrarily or as they like.”

Akinseye-George clarified that the lecture concentrated on the political parties because they constitute the major pillar on which democracy is established.

Indeed, the achievement or otherwise of our democracy is related to the degree of enlightenment and ability of the political parties to accept the rule of law in their operations,” the scholar said.

He emphasized the constitutional requirements associated with political parties; selection of candidates and political party’s finances as empowered in the Electoral Act, 2022 as well as appointed leading judicial pronouncements on political parties and elections.

Also speaking, the convener of Nigeria Civil Society Situation Room, a body of over 70 Civil Society Organisations (CSOs), Ene Obi, petitioned INEC to reopen the halted Continuous Voter Registration (CVR) exercise at least for one month.

Obi noted that such a window would encourage those willing to participate in the exercise, but could not due to technical issues and other glitches.

She said: “The civil society organizations are endorsing and petitioning INEC to open registration because a lot more want to register and we don’t want to shut down their enthusiasm. So, they must reopen it even if it is for one month.

“More than 11 million of those who conducted their forms online were unable to complete their registration. That means you are losing 11 million electorates. That’s a lot, and INEC should address it. We are still soliciting that more of them can still register. They should open it even if it is a window of one month.”

Earlier, in his welcome statements, the director general of the Electoral Institute, Sa’ad Idris, said the theme for this year’s lecture was carefully selected considering the condition and requirements for executing the 2023 general elections under a new law (Electoral Act, 2022).

Idris said the speech aims to look at the significance of the new electoral law for not only the Commission but also, in particular, the 18 political parties that will be fielding nominees for the numerous elective offices in the next year’s polls.

He said, “This topic is also very apt, to train the Executives (National Chairman and Secretaries) of the 18 Political Parties on the several Sections of the new Act and the crucial implications ingrain in many of its Sections.

“The tragic prevalence of many legal cases occurring even from the pre-election period up till after the conduct of the elections, indeed have at many times gave rise to a lot of challenges to the electoral process and our country’s political advancement at large.”

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FG Has Paid Fuel marketers N74B in Seven Months — NMDPRA

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petrol

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Wednesday disclosed that the federal government has paid oil marketers N74 billion as bridging claims in last seven months..

The agency said it was reacting to claims by the Independent Petroleum Marketers Association Nigeria (IPMAN), Suleja branch, that continuing fuel scarcity was caused by non-payment of bridging claims.

The agency said it paid N71.2 billion bridging claims and another N2.7 billion freight differentials to the marketers as of June 6.

In May, IPMAN said the government owed its members half a trillion naira being the cost of transporting petrol across the country.

However, at the time NMDPRA had claimed to have paid oil marketers bridging claims of about N59 billion in five months.

In recent months, fuel scarcity has worsened in Abuja and several other cities across the country.

Marketers had listed the high cost of buying petrol at the depots and the high cost of diesel to truck them as the major factors responsible for the recent queue.

On Monday, the government announced that the nation’s capital petroleum deliveries were up nearly 100 per cent after the government offered additional N10 freight reimbursements to marketers.

The statement by the NMDPRA reads: “The attention of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been drawn to allegations made by the Independent Petroleum Marketers Association Nigeria (IPMAN Suleja Branch) on product scarcity as a result of non-payment of bridging claims.

“The authority chief executive of the NMDPRA, at a meeting held on 17th May 2022 with IPMAN bridging payment was discussed extensively and the processes were explained and agreed upon by IPMAN.

“He assured IPMAN of NMDPRA’s willingness to continue making payments of outstanding claims to promote seamless operations.

“Pursuant to the meeting, the NMDPRA went ahead to make an additional payment of N10 billion in June and sought for an upward review of the freight rate which was approved by President Muhammadu Buhari and is currently being implemented.

“The Authority wishes to reiterate that bridging payment is an ongoing process which is carried out after due verification exercise by the Authority and Marketers.

“So far, the Authority paid N71,233,712,991 bridging claims and another N2,736,179,950.84 freight differentials to the Marketers as at 6th June 2022.

“A breakdown of payment made to Marketers is as follows: Major Marketers (MOMAN) received N9,958,777,487.24, IPMAN members were paid N42,301,923,616.96, NNPC Retails N6,661,459,118.61 while DAPPMAN members were paid N12,303,195,651.57, these translate to a total of N73,969,892,941.84.

“It is disheartening that despite these payments and increase of N10 bridging cost, which was approved by President Muhammadu Buhari two weeks ago, IPMAN could turn around to accuse the NMDPRA of insensitivity,” the statement said.

It said NMDPRA remains committed to ensuring a safe, efficient, and effective conduct of midstream and downstream petroleum operations.

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Nigeria-Cameroon Link Bridge up for Inauguration this June – Fashola

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The Minister of Works and Housing, Babatunde Fashola (SAN), has stated that the Nigeria-Cameroon link bridge will be inaugurated this June.

Speaking at the 16th inter-ministerial meeting of the group in Abuja, Fashola who doubles as the Chairman of the five regional ministerial steering committees, explained that the largely funded bridge by the African Development Bank (AfDB) is completed and in hopes that ECOWAS would deliver support for the inauguration.

“We have completed a new link bridge that links Nigeria to Cameroon, and it was funded largely by the AfDB and we are hoping that the ECOWAS commission will give us the necessary support to ensure the formal opening of that bridge sometime in the month of June,” he said.

The commitment to the piece of infrastructure, according to the minister, is to transform the road network into a first-class six-lane motorway, emphasizing that while speed is important, quality must not be lost.

“We’re trying to deliver a better life for five countries and over 40 million people who use that corridor, almost on a daily basis.

“The future is bright, this is an important investment for the people of Africa to achieve the objective of the Africa Union (AU) to create a trans-African highway,” he stated.

Lydie Ehouman, AfDB’s Chief Transport Economist and Project Task Manager, also spoke at the event, stating that the bank had been able to acquire an additional €3.5 million for the road project.

Investors King gathered that the total sum available for the initial financing of the project’s strategic research has increased to $41 million.

“The agreement for the on-lending of this additional grant by the bank to ECOWAS is currently being finalised. Thus, in addition to its substantial contribution of $25 million, the bank will have mobilised €12.63 million in the form of a grant from the European Union.

“This brings the total amount available for the financing of this highly strategic study to the equivalent of about US$ 41 million,” she stated.

She did, however, point out that specialists in member countries’ claims of delays were untrue, because the arrangement was that labor should persist while any differences were aired and rectified.

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