BY MOYINOLUWA BAMIDELE-LUCAS
The Revenue Mobilisation Allocation and Fiscal Commission has assured Nigerians that a new and acceptable revenue formula that will tackle new development realities in the country will be in place soon.
Chairman of the Commission, Elias Mbam, gave the reassurance in Abuja on Sunday, while analysing the successful engagements the commission had with various stakeholders across the country.
He commended Nigerians for their effective participation during the Commission’s zonal public hearing for a new revenue sharing formula.
Mbam reiterated the determination of RMAFC to come out with a credible, acceptable and fair new revenue sharing formula for the country.
He said that the Commission would synthesise and analyse the various presentations from stakeholders’ across the six geo-political zones and the Federal Capital Territory.
“The consensus of the states and the federal government at the various zonal public hearing was a reversal of the current sharing formula”
Mbam, especially, commended the 36 state governors for mobilising the people to massively and effectively participate in this all important national issue.
He recalled that when President Muhammadu Buhari inaugurated the board of RMAFC on June 27, 2020, he charged the members to be fair and just to all tiers of government in the review of the current revenue allocation formula.
He reiterated the Commission’s commitment not to compromise RMAFC’s constitutional mandate for whatever reasons.
The consensus of the states and the federal government at the various zonal public hearings was a reversal of the current sharing formula.
The existing formula gives 52.68 per cent to the federal government, the states 26.72 per cent, the local governments 20.60 per cent, with 13 percent derivation revenue going to the oil-producing states.
There was, however, no consensus on what the new sharing formula should be, a decision to be taken by RMAFC, which has the constitutional right to do so.
The federal government had, through Secretary to the Government of the Federation, Boss Mustapha, proposed an increase in revenue allocation to local governments from 20.60 per cent to 23.73 per cent.
He added that it was also being proposed that allocation to the federal government be reviewed downward from 52.68 per cent to 50.65 per cent, states from 26. 72 per cent to 25.62 per cent, with allocation for derivation remaining at 13 per cent.
“Development needs to start getting to the local governments for the nation to get fully developed,” he said.
Mustapha stated that the issue of revenue allocation should be handled constructively, especially in the face of dwindling revenue and the need for states to increase their internally-generated revenue.
