GIVE LAGOS ITS ONE PER CENT

Abolaji A. Abolaji writes that the federal government should accord Lagos a special status

Whether the Federal Government of Nigeria formally acknowledges it or not, Lagos is special among all states in the country. Call it a first among equals and you won’t be wrong.

When it was the nation’s capital, it had federal government presence, with all its baggage to boot, constantly attracting other Nigerians. But after the capital was moved to Abuja in 1991, the rush to come to Lagos by other Nigerians to seek the proverbial Golden Fleece did not wane.

That Lagos is the most economically viable state in Nigeria is not news. That with a population of over 20 million, it hosts the most Nigerians, despite being the smallest in terms of land size, is also not news. But the fact that its contribution to the federal purse does not match what it gets from it has pitched the state against the federal government for a while. It has been a constant source of rancour between both parties. Yet, the federal government has not budged.

Recently, the Rivers State governor, Nyesom Wike, celebrated a court judgement which empowered his state to collect Value Added Tax, a move which didn’t go down well with the federal government. While Lagos followed Rivers and enacted its VAT laws, other states like Edo, Taraba, Ondo, Delta, Akwa Ibom and Oyo are considering similar moves.

Hence, when the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the body charged with sharing funds to states, decided it was time to review the sharing formula, there was renewed optimism for states like Lagos which have felt cheated. Currently, out of the revenue generated in the country, the federal government takes 52.68 per cent, states get 26.72 per cent, and the Local Governments get 20.60 per cent.

Speaking in Lagos on Monday at the opening of a two-day South-West Zonal Public hearing on review of revenue allocation formula, Lagos State governor, Babajide Sanwo-Olu, said the review was long due and would guarantee national development. To him, a fair formula would ensure Lagos prospers more, creating multiplier effects across the country too. But what exactly is motivating this and what does the governor really mean? Hear him.

“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,” said Sanwo-Olu, who also used the opportunity to repeat the call to accord Lagos a special status because of its financial commitments and burdens.

“Lagos State is no doubt the nation’s commercial capital, and population centre. 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 per cent of the national GDP and about 10 per cent of the nation’s population to continue to prosper.”

The governor also reiterated that Lagos, unlike other states, is a mini-Nigeria.

“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,” Sanwo-Olu said.

“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.”

To understand how Lagos represents Nigeria, think of some dispersion of citizens from various states of the country. You can’t talk about Mile 12 market, a large hub for food stuffs in Lagos, without mention of northerners. Around the abattoir in Agege, the main cattle suppliers are of course Hausas. How about the Mallams trading in Forex? Igbos populate markets like Ladipo which specialises in auto parts and Alaba which specialises in electrical fittings and electronics. They are also the ones mainly involved in importing goods from overseas. All these people work and live in Lagos. Of course, Lagos also hosts other groups of Nigerians. On weekends, it can be guaranteed that all sorts of town meetings are held amongst various kith and kin from across the country residing in the state. Name any ethnic group in the country and chances are that some of them are in Lagos. In summary, in addition to being the commercial hub of the country, Lagos is also home to many Nigerians from other states.

These people will need schools, hospitals, recreational facilities, transportation and guarantee of safety of lives and property. Funding these would not come cheap, at least, not from the resources shared to Lagos in the current arrangement.

But aside from being home to many ordinary citizens, the governor also noted: “Additionally, Lagos still harbours 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.”

But beyond normal times, Lagos also faces emergencies. During his presentation, Sanwo-Olu recalled the horrors of the destruction which followed the ENDSARS protests in October 2020 as well the effects of the COVID-19 pandemic. “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,” he said.

“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 a special status. As much as this affects the entire country, it is a fact that the degree of havoc caused by this virus differs from state to state.

“Lagos was the epicentre 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.”

Lagos State, as it is presently structured, should not be allowed to bear such burdens alone. As a mini-Nigeria, it surely deserves a Special Status. And the earlier the federal government recognises this, the better for us all.

Abolaji wrote from Ikorodu