SENATORS
were yesterday locked in a passionate debate of a bill which sought
provision of Federal Government grants for Lagos State.
Deputy Senate President Ike Ekweremadu, who presided, banged the gavel several times for calm.
As the disorder persisted, Ekweremadu sprang up from his seat, pleading for calm.
“A Bill for an Act to make provision for
Federal grants to Lagos State in recognition of its strategic
socio-economic significance and other connected purposes” was sponsored
by Senator Oluremi Tinubu (Lagos Central).
Senator Tinubu meticulously laid out the
framework and the spirit behind the bill. She noted that as a city
which caters for the welfare of residents and visitors, Lagos is placed
under a huge strain that affects its infrastructure.
The proposed legislation attracted unsavory comments from senators who felt Lagos State already had enough to sustain itself.
Three times the bill was put to voice vote and three times it appeared the nay sayers carried the day.
Senator Tinubu said: “Today Lagos serves as the commercial capital of Nigeria and its major nerve centre.
“The strategic importance of Lagos State is inherent in several sectors of the economy.
“Available statistics indicates that six
out of 10 international passengers arrive in Lagos. Eight out of 10
depart from Lagos. This shows that Lagos is the window through which
visitors travelling in and out of Nigeria leave the country.
“Lagos is home to the major ports that
serve Nigeria. It accounts for over 90 percent of all maritime exports.
The state delivers much of the funds, charges that go into the coffers
of the federal government. It is incontrovertible that Lagos State
generates much of Nigeria’s income outside its oil sector.
“According to a Federal Inland Revenue
Service (FIRS) report in 2008, 86.2 per cent companies income taxes were
collected in Lagos alone while 56.7 per cent Value Added Tax (VAT) 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.
“Compared with the rest of the country,
Lagos has the smallest landmass of about 3,671square kilometer and the
highest population density at about 2,649 persons per square kilometer.
“Although the National Population
Census, according to its 2006 figures, named Lagos the second most
populous state in Nigeria, evidence shows that the state is also the
transient state which plays host to millions of transient citizens of
other states who commute to Lagos for commercial transactions on a daily
basis.
“As a city which caters to the welfare
of residents and visitors, Lagos is placed under a huge strain that
affects its infrastructure and welfare implications for residents and
transient citizens of other states in Nigeria.
“Many Nigerians travelling to Lagos experience traffic congestion because of pressure on the road.
“Other problems faced in Lagos include
overcrowding, emergence of slumps, over stretched healthcare facilities,
decreased productivity because of hours lost in traffic, environmental
challenges.
“It is obvious that Lagos State has been left to deal with these pressures on its own at huge cost… “
She went on: “Irrespective of its
contributions to the economy, Lagos receives statutory allocations like
other states. These often translate into meagre sums when compared with
other states generating oil sector revenue.
“The bill aims to remedy the remaining
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 sub-section (1) of the 1999
Constitution as amended.
“The bill allows the grants payable to
be determined by the President and Commander-in-Chief on the
recommendation of the Governor of Lagos State with the proviso that
recommends the modest amount not less than 1 percent of the share of the
revenue accruing to the federal government. The amount is payable upon
appropriation by the National Assembly.
“This grants will be utilised in meeting
the public infrastructural need of Lagos State. For example, improving
on rail infrastructure to decongest the roads and for promotion of the
conducive social economic environment for federal institutions as well
as increase the State’s capacity to continue to play host.
“The bill also establishes a joint
committee host members both the President and the Governor of Lagos
State appoints. The committee will present an annual report to the
president for information outlined in the bill.
Distinguished colleagues, this bill
definitely has financial implications. The compendium shows what the
financial implication that is the recommended one per cent of the share
of the revenue accruing to the Federal Government is attached.
“I urge you to support this bill because
Lagos is our collective heritage whether we live in it as residents or
pass through as visitors.
“We would all benefit from investments
in infrastructural development and perhaps like the former capital of
the republic of Germany, Lagos is service to many international agencies
that will utilise her former federal duties.”
Senators Gbenga Ashafa (Lagos East),
Solomon Adeola (Lagos West), Barnabas Gemade (Benue North East) Fatima
Raji-Rasaki (Ekiti Central) Olusola Adeyeye (Osun Central), supported
the bill.
Senators Aliyu Wamakko (Sokoto North),
Hope Uzodinma (Imo West) Abdullahi Adamu (Nasarawa West), James Manager
(Delta South) opposed the bill.
Ashafa described the bill as “most important” and urged his colleagues to be sympathetic to the cause of Lagos State.
He noted that over 95 per cent of the
lawmakers have one form of link or the other to Lagos, adding that what
happens in Lagos affects the country.
“The bill is asking for just one per
cent of Federal Government allocation for building of roads and other
infrastructure,” Ashafa said.
Adeola noted that the bill is seeking
special assistance for Lagos State, adding that “any assistance for
Lagos, every Nigerian will benefit from it.”
The Lagos West lawmaker said that what
they were asking for is for the residents of Lagos State, including
Igbo, Hausa, Yoruba and others.
He recalled that when New York ceased to be the capital of the United States, the city was not abandoned by the US government.
He said: “ I want to plead that the bill
be allowed to go for second reading at which stage issues involved will
be addressed adequately.”
Gemade said it was normal for parliamentarians to seek for special grants for their constituencies.
He posited that “the bill is certainly
not out of place as proposed, especially when the federal government
controls large proportion of the federal revenue.
Gemade added that the bill became even
more necessary when it is recognised that there are no institutions left
for states to generate revenue for their upkeep.
He said: “ Supposing the Nigeria Ports
Authority (NPA) is an institution that Lagos city is running, Lagos
would have been making some revenue from it.”
To Senator Raji-Rasaki, the bill is long overdue and seeks to give to Lagos what is due to it.
The Ekiti Central lawmaker insisted that
it is wrong to treat Lagos like every other state without considering
its contributions to the wellbeing of the country.
But Senator Wamakko who flatly opposed the bill, said that its timing was wrong.
The Sokoto North lawmaker said that the bill could not pass when many states could not pay worker.
Senator Gershom Bassey (Cross River
South) said that for the bill to pass, Calabar, the Cross River capital –
should also be considered for special grants. Senator Hope Uzodinma
(Imo West) contended that the criteria given for the passage of the bill
were wrong.
Senator Philip Aduda (FCT) said he would
support the bill only on the condition that the Federal Capital
Territory (FCT) would receive the same consideration.
Senator Abdullahi Adamu cited
constitutional impediments to the bill and concluded that the National
Assembly lacked the jurisdiction to make a law on how money should be
removed from federal government allocations.
He said: “ The Federal Government can
give grants to states but the bill is talking about a certain percentage
to be given to Lagos State from federal revenue.”
Senator James Manager said that though
the bill is good and appealing, “the constitution prescribed how grants
should be given to states.”
The Delta South lawmaker particularly
cited Section 164(1) that stipulates how grants should be given to
states by the Federal Government.
Senator Adeyeye also supported the bill but said that the same Section cited by Senator Manager should be looked into.
Tension rose when Adeyeye insisted that
just like in the case of oil producing areas that receive 13 per cent
derivation, 13 per cent derivation should be set aside for revenue
collected from VAT.
The Osun Central lawmaker also
underscored the need for the country to implement full scale fiscal
federalism as the way out of financial difficulties being experienced by
states.
When he described the FCT as “a rotten pampered child”, there was uproar in the chamber.
The Senator representing FCT, Senator
Aduda, particularly, took offence over the reference to FCT as a “rotten
pampered child’ and sought that Adeyeye withdraw the reference.
Even when Adeyeye prompt withdrew the comment, the withdrawal did not pacify some senators.
Adeyeye said: “I rise to support most of
this bill and to oppose an aspect of it. And the aspect I oppose is the
same aspect that James Manager attempted to highlight. But in doing so,
I want to point out that they are doing so because I don’t even believe
that one percent is enough for Lagos.
“I think what we need to do is to be
fair to every part of this country and to say that we must not kill the
goose that lays the golden egg.
“We have already from Independence and
subsequent alteration to the Constitution, what he has referred to as
grundnorms, in which we say whatever revenue you get from oil by the
principles of derivation, a certain percentage must belong to that
community.
“By the same token, whatever you get
from VAT, a certain percentage should belong to that community. We have
among us a governor who made a law that banned the consumption of
alcohol. That’s what the people want. I supported it. He has the right
to make the law. However, if my own people consume alcohol and pay VAT
on it, he should not take a penny of what my people have for VAT on
alcohol.
“In Lagos, all of us pay tax. And all of
these VAT is taken to Abuja. What we need to do is to say whatever is
good for the goose is good for the gander. If it’s 13 percent for Delta,
Bayelsa, Rivers for oil, let it also be 13 percent to Lagos for the VAT
paid there.
“Mr. President, you led us to Washington
DC on fiscal federalism. We were told that when we see federal roads in
the US, it’s federal only in name. It’s federal only because the
Federal Government of the US provides 80 percent of the money and the
state government provides 20 percent. But all of the money is given to
the Federal Government on that road. 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.”
At this stage, there was uproar in the chamber.
Some northern senators were particularly irked that Adeyeye spoke about states withholding VAT raised in their states.
Ekweremadu intervened and asked Adeyeye to withdraw the comment on FCT.
Adeyeye said: “I have already withdrawn
it. Mr. FCT (referring to Aduda) I’ve withdrawn it. Having withdrawn it
and having been forgiven by my brother Phillip, my friend, an apology is
an apology.”
But The rowdiness in the chamber persisted.
It appeared Senator Aduda, who
apparently felt injured by the contributions of Senator Adeyeye,
especially the reference to FCT as “rotten pampered child”, was ready to
fight Adeyeye.
Aduda sprang up from his seat but was prevailed upon by his colleagues.
Adeyeye continued: “My point remains
that for everyone who lives in a house in Lagos, you pay tax. 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.”
There was loud murmuring.
Amid the ensuing confusion, Ekweremadu
said: “Now, we will put the question. Distinguished colleagues, those in
support this bill be read the second time say aye.”
After three times of putting the question, it was obvious that the majority were against the bill.
Ekweremadu ruled that the “nay” had it.