The debate on a bill seeking special grants from the Federal
Government to Lagos State degenerated to a shouting match during
the plenary of the Senate on Wednesday.
The bill, if passed into law, will ensure that Lagos is legally
entitled to one per cent of the total revenue generated by the
Federal Government.
The bill, which was presented in the 7th Senate, was sponsored
by the lawmaker representing Lagos Central Senatorial District,
Senator Oluremi Tinubu, and it seeks to establish “an Act to make
provisions for federal grants to Lagos State in recognition of its
(the state) strategic socio-economic significance and other
connected purposes.”
Leading the debate when the bill got to the second reading on
Wednesday, Tinubu said Lagos, being the commercial nerve centre of
Nigeria, served as the commercial capital of country.
She added that the strategic importance of the state was
inherent in several sectors of the economy.
The senator added, “Available statistics indicate that six out
of 10 international passengers arrive in Lagos while eight out of
10 depart from Lagos. This shows that Lagos is the window through
which visitors travel in and out of Nigeria.
“Lagos is home to the major ports that serve Nigeria. It
accounts for over 90 per cent of all maritime exports. The state
delivers much of the funds and charges that go into the coffers of
the Federal Government. It is incontrovertible that Lagos State
generates much of Nigeria’s income outside its (the country’s) oil
sector.
“According to an FIRS report in 2008, 86.2 per cent of companies
income taxes were collected in Lagos alone, while 56.7 per cent of
Value Added Tax was collected in Lagos.
“Key sectors of the economy, namely manufacturing, construction,
telecommunications, financial institutions and insurance are
domiciled in Lagos. Lagos also plays a major role as host to
sporting, entertainment and cultural events. It is also the home of
hospitality, given the numerous hotels and restaurants located
within the state.”
Tinubu said Lagos, when compared with the rest of the country,
had the smallest land mass of about 3,671 square kilometres and the
highest population density at about 2,649 persons per square
kilometres.
She noted that although the 2006 National Population Census
placed Lagos as the second most populous state in Nigeria, evidence
had shown that the state was also a transient state, which played
host to millions of transient citizens of other states in Nigeria,
who commuted to Lagos for commercial transactions on a daily
basis.
She stated, “It is inadvertent that Lagos State has been left to
deal with this pressure on its own at huge costs. The state bears
the burden for the wear and tear that many of the federal revenue
generating activities cause. Irrespective of its contributions to
the economy, Lagos receives statutory allocations like other
states, which often translate into meagre sums when compared with
other states.”
According to Tinubu, the bill aims to remedy the problems faced
by residents and visitors in Lagos by empowering the Federal
Government to make provisions for economic assistance through
grants, as provided for under Section 164 (1) of the 1999
Constitution (as amended).
Senator Aliyu Wamakko (Sokoto North), however, faulted the
timing of the bill, saying Lagos should not ask for additional
funding at a time the country was facing an economic
downturn.
He also said the bill, if passed, would inspire other states to
ask for special funds.
“Other states owe salaries and Lagos, being the richest state,
is asking for additional fund. It will only make other states
poorer and Lagos State richer,” he said.
Hope Uzodimma (Imo West) also opposed the bill.
Senator Adeola Olamilekan (Lagos West), however, urged his
colleagues not to politicise the bill.
He noted that Lagos had become home to all Nigerians from
different parts of the country. According to him, whatever is given
to Lagos would benefit people of other ethnic nationalities living
in the state.
Fatimah Raji-Rasaki said she would back the bill provided that
the special fund would be channelled towards capital projects and
infrastructure from which the Federal Government generated
revenue.
Senators Abdullahi Adamu (Nasarawa West) and James Manager
(Delta South) said even though they supported the bill, its
provisions were in conflict with the constitution.
Adamu pointed out that the National Assembly lacked the powers
to make laws on how the executive shared the national revenue.
Manager, who described the bill as “very good and very
appealing,” specifically cited Section 164(1) of the 1999
Constitution, which states the terms and conditions of how the
President could allocate resources.
Senators Phillip Aduda (FCT) and Gershon Bassey (Cross River
South), in their separate submissions, argued that whatever special
benefits Lagos would enjoy should be extended to the FCT.
They said the federal infrastructure in the nation’s capital
also needed attention from the government.
Bassey specifically stated that Calabar should be considered for
special grants being the first capital of the country.
The proceedings, however, became rowdy when the Chief Whip,
Senator Olusola Adeyeye (Osun Central), who supported the bill,
argued that the Federal Government should give Lagos special
recognition just as it was doing for the Federal Capital Territory,
Abuja.
He queried why the FCT was being subsidised by the Federal
Government whereas taxes were being paid for same government
services in Lagos.
He also queried why some northern states, which banned alcohol
consumption, were benefiting from the revenue from the VAT paid on
alcohol consumed in Lagos.
“In Lagos, all of us pay taxes; and all of this VAT is taken to
Abuja. What we need to do is to say whatever is sauce for the goose
is sauce for the gander. If it’s 13 per cent for Delta, Bayelsa,
Rivers for (producing) oil, let it also be 13 per cent for Lagos
for the VAT paid there.”
The Chief Whip cited the example of the case of the fiscal
federalism in the United States where some roads were categorised
as federal even though the state usually paid 20 per cent
counterpart fund for the construction.
He added, “Until we have fiscal federalism, Lagos will not work;
Calabar will not work; the FCT will not work. By the way, the FCT
is a rotten pampered child.”
For describing the FCT as “a rotten pampered child,” temper rose
in the chamber, making the Deputy Senate President, Senator Ike
Ekweremadu, who presided over the plenary, to ask Adeyeye to
withdraw the statement, which he did.
Adeyeye, at the peak of the tension, said, “My point remains
that for everyone who lives in a house in Lagos, you pay tax. (In)
Abuja, we don’t pay tax and, therefore, the FCT is being subsidised
by the Federal Government. That must end! I won’t apologise for
that. The FCT is not paying sufficient tax.”
By then, the chamber had become rowdy. Most of the senators were
already standing. Some lawmakers were seen pacifying Aduda.
For about five minutes, Ekweremadu was on his feet, hitting the
gavel continuously while shouting, “Please, let’s settle down.
Distinguished senators, please, let’s continue.”
In a move that put the situation under control, the Deputy
Senate President quickly put the bill to vote.
Ekweremadu asked for voice votes three times and the nays had
it.
Copyright PUNCH.
The post Rowdy session as Senate rejects special grants for
Lagos appeared first from online sources and was reposted by the community on Welcome to 9jalegal –
Nigeria’s Leading Legal Information and Services Portal.
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The debate on a bill seeking special grants from the Federal
Government to Lagos State degenerated to a shouting match during
the plenary of the Senate on Wednesday.
The bill, if passed into law, will ensure that Lagos is legally
entitled to one per cent of the total revenue generated by the
Federal Government.
The bill, which was presented in the 7th Senate, was sponsored
by the lawmaker representing Lagos Central Senatorial District,
Senator Oluremi Tinubu, and it seeks to establish “an Act to make
provisions for federal grants to Lagos State in recognition of its
(the state) strategic socio-economic significance and other
connected purposes.”
Leading the debate when the bill got to the second reading on
Wednesday, Tinubu said Lagos, being the commercial nerve centre of
Nigeria, served as the commercial capital of country.
She added that the strategic importance of the state was
inherent in several sectors of the economy.
The senator added, “Available statistics indicate that six out
of 10 international passengers arrive in Lagos while eight out of
10 depart from Lagos. This shows that Lagos is the window through
which visitors travel in and out of Nigeria.
“Lagos is home to the major ports that serve Nigeria. It
accounts for over 90 per cent of all maritime exports. The state
delivers much of the funds and charges that go into the coffers of
the Federal Government. It is incontrovertible that Lagos State
generates much of Nigeria’s income outside its (the country’s) oil
sector.
“According to an FIRS report in 2008, 86.2 per cent of companies
income taxes were collected in Lagos alone, while 56.7 per cent of
Value Added Tax was collected in Lagos.
“Key sectors of the economy, namely manufacturing, construction,
telecommunications, financial institutions and insurance are
domiciled in Lagos. Lagos also plays a major role as host to
sporting, entertainment and cultural events. It is also the home of
hospitality, given the numerous hotels and restaurants located
within the state.”
Tinubu said Lagos, when compared with the rest of the country,
had the smallest land mass of about 3,671 square kilometres and the
highest population density at about 2,649 persons per square
kilometres.
She noted that although the 2006 National Population Census
placed Lagos as the second most populous state in Nigeria, evidence
had shown that the state was also a transient state, which played
host to millions of transient citizens of other states in Nigeria,
who commuted to Lagos for commercial transactions on a daily
basis.
She stated, “It is inadvertent that Lagos State has been left to
deal with this pressure on its own at huge costs. The state bears
the burden for the wear and tear that many of the federal revenue
generating activities cause. Irrespective of its contributions to
the economy, Lagos receives statutory allocations like other
states, which often translate into meagre sums when compared with
other states.”
According to Tinubu, the bill aims to remedy the problems faced
by residents and visitors in Lagos by empowering the Federal
Government to make provisions for economic assistance through
grants, as provided for under Section 164 (1) of the 1999
Constitution (as amended).
Senator Aliyu Wamakko (Sokoto North), however, faulted the
timing of the bill, saying Lagos should not ask for additional
funding at a time the country was facing an economic
downturn.
He also said the bill, if passed, would inspire other states to
ask for special funds.
“Other states owe salaries and Lagos, being the richest state,
is asking for additional fund. It will only make other states
poorer and Lagos State richer,” he said.
Hope Uzodimma (Imo West) also opposed the bill.
Senator Adeola Olamilekan (Lagos West), however, urged his
colleagues not to politicise the bill.
He noted that Lagos had become home to all Nigerians from
different parts of the country. According to him, whatever is given
to Lagos would benefit people of other ethnic nationalities living
in the state.
Fatimah Raji-Rasaki said she would back the bill provided that
the special fund would be channelled towards capital projects and
infrastructure from which the Federal Government generated
revenue.
Senators Abdullahi Adamu (Nasarawa West) and James Manager
(Delta South) said even though they supported the bill, its
provisions were in conflict with the constitution.
Adamu pointed out that the National Assembly lacked the powers
to make laws on how the executive shared the national revenue.
Manager, who described the bill as “very good and very
appealing,” specifically cited Section 164(1) of the 1999
Constitution, which states the terms and conditions of how the
President could allocate resources.
Senators Phillip Aduda (FCT) and Gershon Bassey (Cross River
South), in their separate submissions, argued that whatever special
benefits Lagos would enjoy should be extended to the FCT.
They said the federal infrastructure in the nation’s capital
also needed attention from the government.
Bassey specifically stated that Calabar should be considered for
special grants being the first capital of the country.
The proceedings, however, became rowdy when the Chief Whip,
Senator Olusola Adeyeye (Osun Central), who supported the bill,
argued that the Federal Government should give Lagos special
recognition just as it was doing for the Federal Capital Territory,
Abuja.
He queried why the FCT was being subsidised by the Federal
Government whereas taxes were being paid for same government
services in Lagos.
He also queried why some northern states, which banned alcohol
consumption, were benefiting from the revenue from the VAT paid on
alcohol consumed in Lagos.
“In Lagos, all of us pay taxes; and all of this VAT is taken to
Abuja. What we need to do is to say whatever is sauce for the goose
is sauce for the gander. If it’s 13 per cent for Delta, Bayelsa,
Rivers for (producing) oil, let it also be 13 per cent for Lagos
for the VAT paid there.”
The Chief Whip cited the example of the case of the fiscal
federalism in the United States where some roads were categorised
as federal even though the state usually paid 20 per cent
counterpart fund for the construction.
He added, “Until we have fiscal federalism, Lagos will not work;
Calabar will not work; the FCT will not work. By the way, the FCT
is a rotten pampered child.”
For describing the FCT as “a rotten pampered child,” temper rose
in the chamber, making the Deputy Senate President, Senator Ike
Ekweremadu, who presided over the plenary, to ask Adeyeye to
withdraw the statement, which he did.
Adeyeye, at the peak of the tension, said, “My point remains
that for everyone who lives in a house in Lagos, you pay tax. (In)
Abuja, we don’t pay tax and, therefore, the FCT is being subsidised
by the Federal Government. That must end! I won’t apologise for
that. The FCT is not paying sufficient tax.”
By then, the chamber had become rowdy. Most of the senators were
already standing. Some lawmakers were seen pacifying Aduda.
For about five minutes, Ekweremadu was on his feet, hitting the
gavel continuously while shouting, “Please, let’s settle down.
Distinguished senators, please, let’s continue.”
In a move that put the situation under control, the Deputy
Senate President quickly put the bill to vote.
Ekweremadu asked for voice votes three times and the nays had
it.
Copyright PUNCH.
The post Rowdy session as Senate rejects special grants for
Lagos appeared first from online sources and was reposted by the community on Welcome to 9jalegal –
Nigeria’s Leading Legal Information and Services Portal.
No related posts.
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