FG Plans to Review Revenue Allocation Formula, Says RMAFC Chairman
The federal government has concluded plans to carry out a review of the current revenue sharing formula for the three tiers of government.
The plan which was revealed by the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr. Elias Mbam, Tuesday, is to reflect the current economic situation in the country.
Mbam said in Abuja while receiving an award of excellence from the Nigeria Civil Service Union that the commission was planning for diversification of Nigeria’s revenue sources for more sustainable growth and development.
He said that the Commission wants to set up a standing committee to start work on the review.
The plan is coming following persist pressure from states for the review with the new minimum wage in place.
Under the current arrangement, the federal government collects 52.68 percent revenue declared for sharing, states – 26.72 per cent while the local government gets 20.60 per cent.
Oil producing states enjoy 13 per cent allocation from what is collected.
Mbam said, “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,” he said, adding: “I intend to do this through diversification in areas outside oil and gas and 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 it was important for the states to think of financial autonomy of local governments.
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