BY MONSUR OLOWOOPEJO

LAGOS—LAGOS State government yesterday said the Federal Government had stopped the one percent monthly revenue deduction from state governments from the Federation Account.
The money was being deducted to fund police reforms.

Governor Babatunde Fashola of Lagos State had dragged the Federal Government to the Supreme Court over the deduction, arguing that the deduction violated section 162 (3-5) of the 1999 constitution.
However, Commissioner for Finance, Mr. Ayo Gbeleyi, at a briefing, said other illegal deduction for protection of oil pipelines in the country, had been stopped.

Gbeleyi said the deductions stopped based on the protests by governors led by Fashola contending that the Federal Government had no constitutional rights to deduct such funds.

He argued that the central government should not have deducted funds from Lagos account for police reform because Lagos had funded the Nigerian Police Force through the Lagos State Security Trust Fund, LSSTF.