A member of the Lagos
State House of Assembly, Mr Saka Fafunmi, has called for increased statutory allocation to local governments in the country to fast-track their areas’ development.
Fafunmi told newsmen in Ikeja that this was necessary because the country’s 774 local councils were closer to the people than other tiers of government.
He said the revenue-sharing formula should be targeted at improving the lives of Nigerians, as well as the country’s economy.
“The Federal Government is earning about 52 per cent, the 36 states share 26 per cent, while all the 774 local governments in the country share only 22 per cent of the nation’s income.
“When you break it down, the addition of what goes into the states and the local councils are smaller than what goes into the Federal Government.
“The allocation of the states and local councils should be able to stimulate the economy and let the nation grow at the grassroots level.
“Local governments deserve some funds to allow them perform excellently well and bring the development that Nigeria deserves and move government closer to the people,’’ the lawmaker said.
Fafunmi said many local councils have not been able to live up to expectations due to lack of adequate funding.
He advised the federal government to harness its resources in order to advance the economy and allow even development in the country.
The legislator, who is chairman, House Committee on Public Account, also appealed to the Federal Government to create the enabling environment for those with small scale business to access loans.
He said the high interest rates charged by commercial banks on loans have hindered a lot of businesses and small scale entrepreneurs in growing.
The lawmaker said people with legitimate businesses found it difficult to access bank loans as a result of “unfavourable’’ government policies.
“Why is it that if you want to do a legitimate business, you cannot access a bank loan to get money, even when the money is available.
“The interest rate is about 23 or 26 per cent and it is not easy for such business to break even.
“If the government wants to help the country, it should be interested in how the medium and small scale industries can grow.
“A lot of people have ideas, but they don’t have financial backing to actualise the dreams.
“That is the difference between our economy and those of countries like the U.S. and other developed countries where you can borrow at single digits,” he said.
Fafunmi also said Lagos as a state deserves a special status to enable it provide adequate infrastructure and social amenities to cater for its population.
He further urged the Revenue Mobilisation Allocation and Fiscal Commission to look at the peculiarities of the state and give it more focus just like oil-producing states.
The lawmaker also urged delegates at the National Conference to review the revenue-sharing formula to ensure even development among the states.