A new vertical review of the revenue sharing formula for the three tiers of government has seen the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) proposing a 3.33% reduction in the statutory allocation to the Federal Government.
While RMAFC proposed a slash in the federal government’s allocation, it nonetheless jerked up allocations to states and local government councils by 3.07% and .44%, respectively.
Revealing this in a report presented to President Muhammadu Buhari at the Presidential Villa, Abuja, Thursday, by the Chairman of RMAFC, Mr Elias Mbam, the council noted that the existing sharing formula allocates 52.68% to the FG while states and local government councils get 26.72% and 20.60%, respectively, noting that in the new formula, the FG will now receive 45.17% while states and LGCs will get 29.79% and 21.04%, respectively.
President Buhari, who was enthusiastic while receiving the report, said he would have to await the outcome of the ongoing constitutional review process before presenting the new allocation formula to the National Assembly as a Bill for enactment.
A statement by the president’s Special Adviser on Media and Publicity, Mr. Femi Adesina, quoted the president as saying, “Ordinarily, I would have gone ahead to table this report before the National Assembly as a Bill for enactment.
“However, since the review of the vertical revenue allocation formula is a function of the roles and responsibilities of the different tiers of government, I will await the final outcome of the constitutional review process, especially as some of the proposed amendments would have a bearing on the recommendations contained herein.
“Establishing local government as a tier of government and the associated abrogation of the state/local government account; moving airports; fingerprints, identification and criminal records from the exclusive legislative list to the concurrent legislative list, empowering the RMAFC to enforce compliance with remittance of accruals into and disbursement of revenue from the Federation Account as well as streamlining the procedure for reviewing the revenue allocation formula.”
However, the President assured members of the Commission that the Federal Government would immediately subject the report to its internal review and approval processes, while awaiting finalization of the efforts by the National Assembly.
He said: ‘‘I am aware that the present revenue allocation formula has not been reviewed since the last exercise carried out in 1992.
‘‘Considering the changing dynamics of our political-economy, such as Privatisation, Deregulation, funding arrangement of Primary Education, Primary Health Care and the growing clamour for decentralization, among others; it is necessary that we take another look at our Revenue Sharing Formula, especially the vertical aspects that relate to the tiers of government.
‘‘This becomes more compelling as we need to reduce our infrastructural deficit, make more resources available for tackling insecurity, confront climate change and its associated global warming and make life more meaningful for our rapidly growing population.”/SHARE THIS