…As Local Governments’ Surges By 47%
Lagos State Governor, Mr. Babajide Sanwo-Olu, has disclosed that under the President Bola Tinubu-led administration revenue allocations to state and local governments in the country have remarkably increased such that no state governor or local government chairman can genuinely complain about a lack of funds for governance.
The governor made this disclosure on Tuesday in his keynote address at a one-day public lecture with the theme “65 Years of Nigeria’s Independence: The Journey So Far with the Renewed Hope Agenda in View” organised by the Arewa Think Tank (ATT) to commemorate Nigeria’s 65th Independence anniversary at the Arewa House, Kaduna.
Sanwo-Olu commended President Tinubu for implementing policies that had boosted revenue generation, especially from non-oil sector sources, and allocations to states and local governments, with the attendant positive impacts on fiscal federalism and grassroots governance.
- Advertisement -
He enthused: “Today, that story has changed. Ask any State Governor or Local Government Chairman, and they will tell you just how much revenue has surged under the watch of President Bola Ahmed Tinubu. There is now more money to do more that benefits the people of Nigeria.”
Specifically, the governor confirmed that revenue allocations to state governments rose by about 62 per cent between 2023 and 2024, while allocations to local governments increased by 47 per cent.
According to him, the recently enacted tax reforms, which reduced the Federal Government’s share of Value Added Tax (VAT) from 15 per cent to 10 per cent, further demonstrated Tinubu’s commitment to fiscal de-centralisation and grassroots development.
The governor clarified that with the new tax laws, states now get 55 per cent of VAT, while local governments receive 35 per cent, noting that this is another bold step by the President to ensure that governance is closer to the people,” he added.
Sanwo-Olu also lauded the Tinubu administration’s insistence on local government financial autonomy based on the Supreme Court judgment that legally secured the fiscal independence of the local governments in the country.
