ABUJA – Senate yesterday rejected a Bill for one percent of federation revenue as special economic assistance package for Lagos state.
The rejection was immediately followed by altercation between lawmakers who were for and those against the Bill, resulting in a commotion that was immidiately brought down by Senate President Bukola Saraki.
The Bill seek to provide legislative backing to make it compulsory for the federal government to approve one percent of the national revenue as Special Economic Assistance for Lagos state.
In its debate on the Bill titled, “A Bill for an Act to Establish a Lagos State Special Economic Assistance Programme”, which was sponsored by the senator representing Lagos Central, Oluremi Tinubu, the senate terminated the Bill.
The Bill was rejected following the arguments by many of the senators that Lagos is not the only state that has need for Special Economic Assistance, even as they all started urging that government should also give their respective states and regions special economic assistance.
According to Magatakarda Wammako, there are many states facing financial challenges, which has led many to not being able to pay teachers salaries, even as he wondered why the case of Lagos should be different.
Also, James Manager, who quoted section 164(1) of the constitution, said there is no guideline by the National Assembly for the federation to make grants to the states as stipulated by the Constitution.
Similarly, Philip Aduda, in his contribution, said the Federal Capital Territory should also be considered for special economic assistance because there are many poor settlements that deserve federal government economic assistance.
Abdulahi Adamu, in his remarks, said it is not in line with the constitution for the Federal government to make special economic plans for one state against others, pointing out that Nasarawa state shelters majority of the workers in Abuja.
The last struck that broke the camel’s back was when an Osun Central senator, Olushola Adeyeye, who made a case for the Bill, argued that if oil producing states in the South South are entitled to 13 per cent derivation on oil revenues, Lagos state should be allowed to benefit 13 percent also from the VAT collected by the government and not the one percent as being requested by the Bill.
He also described Abuja as a ‘pampered rotten child’, which can generate revenue from the mansions in the city, even without depending on the government, but has rather remained indolent.
At this point, the chamber was thrown into commotion, as the lawmakers began to argue guidlessly among themselves for about five minutes before it was brought into control again by the Deputy Senate President.
In his bid to save the Bill, the Deputy Senate President, Ike Ekweremadu, who presided over the plenary, asked his colleagues three consecutive times if the Bill should pass second reading, but majority of them rejected it repeatedly.
In her lead debate earlier on the Bill, senator Tinubu, who sponsored the Bill, had said the Bill is brought under Section 164(1) of the 1999 Constitution, and is seeking the provision of Special Grants to Lagos state, in recognition of its former status as Federal Capital of Nigeria.
She further noted that the city deserves special status because of its strategic socio-economic significance as the commercial nerve centre of Nigeria, for which it can stand as the commercial capital to Nigeria and major nerve centre.
“Lagos is home for major ports that serve Nigeria, it accounts for over 90 per cent of all maritime exports. The state delivers much of the port charges that go into the coffers of the federal government.
“According to 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 were collected in Lagos. Key sectors of the economy: manufacturing, construction, telecommunications, financial and insurance institutions are dominciled in Lagos”.
