The National leader of the All Progressive Congress (APC), Asiwaju Bola Tinubu, has asked that the Federal Government review its current mode of revenue generation and criteria used for revenue allocation to states and local governments in the country.
Tinubu said that present strategy used by the apex government was faulty and has aided the government to encroach on state and local government revenue generation territories in Nigeria, leaving them with less funds to embark on infrastructural projects within their domains.
He noted that some of the revenues currently received by the federal government particularly the Stamp Duty, which became subject of discussion recently, was not to be collected by the apex government, rather, it was a residual matter that should be decided by the state governments.
The APC national leader, who stressed that there were several encroachment he had discovered in the current method, urged South West Governors to lead the campaign for a urgent review of the processes.
Tinubu made the appeal on Saturday while commissioning Ondo State Internal Revenue House in Akure, an event that was also attended by Lagos state Governor, Babajide Sanwo-Olu, his Osun state counterpart, Gboyega Oyetola and former national chairman of the APC, Bisi Akande, and others.
The former governor of Lagos state said that the criticism does not indicate that he was against President Muhammadu Buhari led administration but his stance was for development of the country.
According to him, revenue generation is important for the survival of any state economy and any denial will affect development in such state because whatever the government needs to do must be funded through taxes that will be paid by residents in the state.
“If all the south west governors embark on physical federalism, which is what the country needs at this time. We are APC and in government today, but that does not translate to the fact that we cannot find faults and criticise ourselves to achieve the best for the country.
“The cumbersome revenue formula of the federal government today needs an urgent review. It has to be reviewed for the progress of the country. And surely, it is a triplet and unusual for APC.
“The South West governors should be consistent in the level of financial inquisitiveness as to where and why and when the revenue formula will be at par with the physical federalism of the country.
“There are various encroachment that I have noticed and with you as a lawyer and financial experts, you should reform the financial bottle neck in the country today.
“What element of stamp duty is that federal allocation and what element is transactional that belong to the state and why are we getting involve in what should be a residual matter of the state. we need to tell each others the truth and not smile always. We will not be afraid to do the right thing for the country because it belongs to everyone”.