Stakeholders from the North Central zone of the country at a one day zonal public hearing on the review of the current revenue allocation formula has called for a total overhaul of the current sharing formula, saying that it is no longer realistic, particularly for the states and Local Government areas across the country.
Kogi state governor , Alhaji Yahaya Bello, who declared the meeting open, advocated for a revenue sharing formula of 39%, 35% and 26% between the federal, state and local government respectively, as against the current 52.68%, 26.72% and 20.60% for FG, States and Local Government respectively, in order to effect development for the country.
Governor Bello stated this on Thursday during a one-day north central zonal public hearing on the review of the current revenue allocation formula organized by Revenue Mobilization Allocation and Fiscal Commission in government house Lokoja.
The Governor who was represented by his Deputy, Chief Edward Onoja , said the main objectives of revenue allocation was to promote national unity and accelerated economic growth of all tiers of government , stressing that the formula currently in use has failed to achieve the desired developmental aspiration.
“We can no longer deny that a comprehensive review of the Revenue Allocation Formula (RAF) currently in use in Nigeria has become overdue.
“Currently, the federal government takes 52.68 percent , the 36 states and the FCT split 26.72 percent and the local government councils make do with 20.60 percent.
“The nine oil producing states receive an additional 13 percent as derivation revenue which is distributed among them depending on the actual contribution of each to crude oil receipts.
“Existential realities between the three tiers of government today necessitate a more equitable sharing plan for all revenue accruing into the federation account” he stated.
He therefore urged the review committee to take a critical look at the revenue allocation formula currently in use with a view to do the needful in the interest of Nigerians.
Others States which includes, Plateau, Nasarawa, Bunue Kwara Niger and stakeholders, equally agreed that there is the urgent need to review the current revenue sharing formula to ameliorate the hardship faced by the other two tires of Government, in the face of the current economic realities.
Earlier in his welcome address, the Chairman of the commission Engr. Elias Mbam, revealed that the Commission , by virtue of Paragraph 32(b), Part 1 of the Third Schedule to the 1999 Constitution of the Federal Republic of Nigeria (As Amended) empowered the commission to review from time to time the revenue allocation formula and principles in operation to ensure conformity with changing realities.
He stated that, in consideration of the above provisions and since the last review in 1992, there has been several socio-economic and political changes in the country, noting that the commission has commenced the process of reviewing the subsisting revenue allocation formula to reflect these changing realities.
“The processes require active participation and contributions of all Stakeholders. Accordingly, the commission has designed processes and guidelines to ensure adequate participation of Nigerians” he said.
The Kogi state Commissioner of finance Asiwaju Asiru Idris, described the process as timely , saying if well conducted and implemented it will no doubt improve the living standard of every Nigerians and as well boost the nation’s economy.
Other states that formed the north central zone presented their views and recommendations to the committee.Share this on WhatsApp