Lagos State Government says it will sue the Federal Government over the deduction of one per cent allocation from the state’s revenue entitlement.
Governor Babatunde Fashola said this at a special briefing with the members of the state’s House of Assembly on Monday, adding that although there had been a decline in the federal revenue, the one per cent deduction had also contributed to the state’s declining allocation.
He said, “I have written to the Federal Government regarding the deduction and will proceed to the court of law if the deduction is not stopped, at least from the state’s due allocation.”
The governor observed that decline in federal revenue could also be linked to uncoordinated waiver policy of the Federal Government, decline in oil production, among others.
Fashola said, “Lagos has been up standing because the tax payers have performed their civic obligation, having faith in the government that their money is being put into judicious use on developmental projects and infrastructural renewal.”
The governor also cited under remittance of funds to the federation account by the Nigeria National Petroleum Corporation to the tune of N2.4tn, which he said was being paid back according to a document available to him.
The governor said, “If indeed NNPC has not withheld remittance, then why is it making a payback, according to the available document of allocation to states?”
He said the decline in revenue would affect the state’s developmental projects, adding that some states were already borrowing.
“We have not had to borrow to keep government going because taxes are paid,” he added.
Fashola said the reason for his coming to the Assembly was because the trend had continued to January 2014, adding that the bleak in February had made it necessary for the lawmakers to know the plight of the state.
“We have been unable to hold the National Economic Council meeting since at least in the last six months to consider economic issues as it affects the 36 states,” he added.
The Speaker, Adeyemi Ikuforiji, assured the governor of an expeditious response, consideration and debate into the issues concern raised.
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