FG Announces Plans To Review Federal, State, LG Revenue Sharing Formula - AMEBO ONLINE NEWSPAPER


"Feeding the world with authentic news from the source....."

Post Top Ad

Responsive Ads Here

FG Announces Plans To Review Federal, State, LG Revenue Sharing Formula

Share This


The federal government says it will set up a committee next week to review the revenue sharing formula for the three tiers of government.

Elias Mbam, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission(RMAFC), made the announcement on Tuesday in Abuja.

According to him, current economic realities have necessitated an appraisal of the revenue allocation between the federal, state and local governments.

Mbam spoke after he received an Award of Excellence from the Nigeria Civil Service Union.

Under the current revenue sharing formula, the federal government takes about 52.68 per cent, the 36 state governments and the Federal Capital Territory get 26.72 per cent and the 774 local governments share 20.60 per cent.

Also, the nine oil producing states of the Niger Delta receive 13 per cent revenue as derivation to compensate for ecological damage of oil production in the region.

This formula was designed during the President Olusegun ObasanjoAdministration.

However, following years of demands for a review of the formula, the RMAFC in 2013 resolved to undertake a review to achieve a balanced development of the country.

To achieve that objective, the commission embarked on a nationwide consultation to the 36 states and also met with notable persons, including traditional rulers on the issue.

By December 2014, the commission came out with a proposed new revenue formula, which was submitted to the government.

The report was, however, not implemented.

More than five years later, the RMAFC chairman said the commission plans to constitute a standing committee to start work once again on the review of the revenue sharing formula.

Mr Mbam said the commission would also pursue the diversification of the nation’s revenue base for a more sustainable growth and economic development.

“My agenda is to expand the sources of revenue for the federation. I will like to expand the cake that we are sharing so that people will get reasonable quantity.

“I intend to do this through diversification in the areas outside oil and gas. That includes solid minerals, agriculture and manufacturing.

“So, we will encourage states and let them know what is available outside oil and gas, so they can develop this aspect of the economy to their own benefit,” he said.

Mr Mbam also spoke on the significance of revisiting the issue of financial autonomy for local government areas. He said this would enable the bulk of Nigerians at the grassroots to get the best out of democracy.

No comments:

Post a Comment

Post Bottom Ad

Responsive Ads Here