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Revenue Formula: Governors To Demand 42% Of Federal Allocation - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / Revenue Formula: Governors To Demand 42% Of Federal Allocation (8103 Views)

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Revenue Formula: Governors To Demand 42% Of Federal Allocation by ijustdey: 9:11am On Aug 10
… seek more cash for salaries, security, roads , others

… want FG ’s share slashed from 52 .68 % to 37 %

… review committee to be inaugurated on Thursday


Olusola Fabiyi, Mudiaga Affe ,Ihuoma Chiedozie and Tunde Ajaja




Ahead of the review of the revenue sharing formula scheduled to start on Thursday , there are strong indications that state governors may demand 42 per cent of the federal allocation as against the 26 .72 per cent they currently get .

The governors are also asking that the share of the Federal Government be slashed from the current 52 . 68 per cent to 37 per cent , while requesting that the share of local governments be increased from the current 20 .60 per cent to 23 per cent in the new formula .

The Chairman , Revenue Mobilisation Allocation and Fiscal Commission , Mr Elias Mbam , had on Tuesday revealed that the commission would set up a committee in the coming week to review the revenue sharing formula for federal , states and local governments due to the current economic realities .

The current revenue sharing formula was designed during the tenure of former President Olusegun Obasanjo , who ruled between 1999 and 2007 .

But, ahead of the inauguration of the review committee on Thursday , a highly placed source privy to the pre -meeting discussions among governors told one of our correspondents on Thursday that the governors might adopt the recommendation of a report earlier submitted by a sub -committee set up by the forum to review the formula .

The source, who asked not to be named , said, “ A committee was set up by the forum and that is the position of the forum on the matter of the revenue formula . The sub -committee met as far back as 2011 and it was made up of six governors, headed by the then governor of Lagos State , Mr Babatunde Fashola .

“ The members were Murtala Nyako of Adamawa State; Sullivan Chime of Enugu State; Babangida Aliyu of Niger State ; Rotimi Amaechi of Rivers State and Aliyu Wamakko of Sokoto State .

“ From the report they submitted to the forum , they recommended that the Federal Government should now get 35 per cent ; states should get 42 per cent and local government should get 23 per cent . That was the recommendation and that is what we have continued to push for. ”

When asked what the governors based their proposal on, the source said they looked at their quest to be able to pay the minimum wage ; the need for more resources to fight insecurity and the decaying infrastructure in their domain , which, according to him, the states do not have the funds to address.

He said , “ The governors noted that managing states today is becoming very expensive and they mentioned the issue of security. Even though there is a central police system , the responsibility is falling on state governments to inject funds to help the agencies and so they have been involved in one way or the other.
“ The cost of securing the states has simply become more expensive and the burden is now heavy on the states. The population has also increased over time and these people are in the respective states.

“ So, when the governors said they needed some adjustments done with the revenue formula in order to defray the increase in the minimum wage , the new formula I mentioned to you was the formula they were referring to. The report was adopted and it was sent to the Federal Government but nothing was done about it .

“ During the negotiation for this minimum wage , the governors again presented their position . They were initially reluctant to agree to the N 30 , 000 but eventually , that was why they said if it ( minimum wage ) must be implemented with ease, there must be an adjustment , and so the report was again sent to the Federal Government but nothing was done about it . ”

When asked if the NGF would stick to the 2011 recommendation , he said , “ I’ m tempted to say yes, because there had been no cause to reconstitute another committee to review it , so even though it ’ s relatively old , as far as we are concerned , that is the official position .”

“ Yes, we know there has been this talk about states boosting their IGR and that they should be able to use that to take care of their recurrent expenditure, but the infrastructure for making that happen is not there .

“ If there is no security and the states are not safe, how do businesses make money and how do you generate revenue from them ? The management of the power sector is still substantially controlled at the centre and so if you can do something as a state to address the power problem , it could change a number of things .

“ On one hand , they are called the chief security officers of their states but on the other hand , the resources they need to make it happen are inadequate. So, we looked at all of these to arrive at that formula and that is our position . ”

State governors had at the National Economic Council meeting on January 18 , 2019 , renewed their call for a review of the nation ’s revenue sharing formula , saying it was necessary for them to be able to pay the N 30 ,000 new National Minimum Wage.

At the meeting , which comprised state governors and some key Ministries , Departments and Agencies of government and chaired by Vice -President Yemi Osinbajo , an official privy to the NEC meeting , said , “ The governors are asking for a review of the revenue sharing formula and government is looking at that. The Minimum Wage Technical Advisory Committee that was inaugurated recently is also looking into the revenue sharing formula .”

Over time , the formula has generated controversies and remained a key factor in the clamour for true federalism or restructuring .
Meanwhile, members of the Nigeria Governors ’ Forum have said they are ready to share their perspectives on how to have a new revenue formula with the revenue commission if invited .

Chairman of the Forum and Governor of Ekiti State, Dr Kayode Fayemi , told one of our correspondents that the NGF had yet to take a common position on the issue .
“ No decision on this yet, but if the RMAFC approaches us, we will share our perspective with them ,” he said .

However, a governor who spoke to Saturday PUNCH on strict condition of anonymity, said members of the NGF would soon meet on the matter.

He said even though a report on the issue by the NGF was being studied and would be reviewed before presentation to the revenue commission , he said the governors would demand between 40 per cent and 45 per cent of the nation ’s revenue .

He said, “ We already have a template . The template is that we want between 40 and 45 per cent . This demand is based on realistic responsibilities that have been put on our neck by the constitution . Apart from this , there are instances whereby the Federal Government has abdicated its responsibilities to the states.

“ For example , states have taken over the funding of police . Apart from the payment of salaries and uniform for the policemen, it is the states that are almost solely responsible for their operations .

“ We are doing half of that for other security agencies. Look at the roads, states have been responsible for the maintenance and even reconstruction of federal roads in our states as well . Even federal hospitals have been abandoned to us. ”

Meanwhile, in response to enquiries by
Saturday PUNCH, the spokesperson for the RMAFC , Ibrahim Mohammed , confirmed to one of our correspondents that a review committee would be inaugurated on Thursday .

Even though he did not disclose the time to be given to the committee to conclude the assignment , Mohammed explained that the committee was a “ standing committee ” whose work was constitutional .

Our correspondent also learnt that the three tiers of government and other bodies would be expected to make presentations and submit proposals to the committee.

“ We ( RMAFC) will invite memoranda from not just the states, but also from civil society organisations and even the media ,” he added .
He explained that at the conclusion of its work , the committee would forward its report to the President .

Mohammed added, “ When we collate the data , we will subject it to subjective and objective analyses and then forward it to the President . Subjectively , we talk to some people , and objectively, we look at the economy and economic indicators.”

The RMAFC spokesperson was , however, silent on whether the commission had any projected take - off date for the revenue sharing formula that would be adopted . Rather, he said , “ We are starting with the committee first – when the committee is properly constituted , that will set the ball rolling and it is then that we can start talking of timelines .”

Meanwhile, efforts to get the position of the local governments on the review were unsuccessful as the National President , Association of Local Governments of Nigeria, Mr Alabi David , declined comment on the matter, while the National President of the National Union of Local Government Employees , Mr Ibrahim Khaleel, did not answer several calls to his phone.


https://punchng.com/revenue-formula-govs-to-demand-42-of-federal-allocation/

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by JosEast(m): 9:22am On Aug 10
hmmm.....fighting for their pocket not for common people

8 Likes 1 Share

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by Chidexter(m): 9:25am On Aug 10
Everyone is demanding in this country. state gov. demands, police are demanding explanation from soldiers. even nairaland demands u accept allah b4 commenting on a muslim thread

12 Likes 3 Shares

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by francescainnoce(f): 11:59am On Aug 10
UK Full Scholarship For Nigerian Students plus £15000 stipends for 3 years. See my signature.
Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by Dollyak(f): 11:59am On Aug 10
This is just another means to steal more funds

1 Like

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by ednut1(m): 12:01pm On Aug 10
They already have over 45%. They all control LGA share. Nonsense looters

6 Likes 4 Shares

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by NgwaManNaija4LF(m): 12:01pm On Aug 10
Let them ask for disintegration, Eastern Nigeria need to be on their separate country and impose tough visa rules... That's my point.

3 Likes 1 Share

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by Nwaedeinya(m): 12:01pm On Aug 10
2wqa3rst45yu6

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by oluwasegun007(m): 12:01pm On Aug 10
Why can't they request for 80%

So that federal government can use the remaining to finance Efcc to monitor their allocation

1 Like

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by Oblitz(m): 12:02pm On Aug 10
Dollyak:
This is just another means to steal more funds

Better to steal money at the state level, than at the federal level. The money would at least be closer to the grassroot.

9 Likes

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by mamaafrik(m): 12:03pm On Aug 10
Restructuring is the answer
Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by mamaafrik(m): 12:05pm On Aug 10
Time to amend Constitution to favour local government autonomy.
Seen'e wicked ni,kakakeku maje seese yio fi shawadanu ni

1 Like

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by Bellix: 12:06pm On Aug 10
Account for the ones you have been given already. Bunch of jokes..
Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by Jmk9292(m): 12:14pm On Aug 10
They should push for regional control of resources.....
Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by daddytime(m): 12:15pm On Aug 10
I can conveniently bet one of my balls that the major proponents of this almajiri style cap in hand quest to increase state allocations are major states who contribute zilch, niet, nada to the common purse.

Very bleeped up entitlement mentality.

Idiots in leadership roles.

1 Like

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by anonymous1759: 12:15pm On Aug 10
...

Lazy and Dumb Ass Governors all their job is to Demand they can't create. if we've visionary Governors who can create wealth the country would have been a better place. lazy set of corrupt Mofos

1 Like

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by Amuocha: 12:22pm On Aug 10
Useless governors

Make local governments 42% and see how i will stop shouting Buhari on this forum angry
Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by Staro: 12:24pm On Aug 10
A
Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by codedguy1(m): 12:24pm On Aug 10
grin
Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by Ekinematics: 12:29pm On Aug 10
NgwaManNaija4LF:
Let them ask for disintegration, Eastern Nigeria need to be on their separate country and impose tough visa rules... That's my point.


South east you mean grin

1 Like

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by codedguy1(m): 12:31pm On Aug 10
mamaafrik:
Time to amend Constitution to favour local government autonomy.
Seen'e wicked ni,kakakeku maje seese yio fi shawadanu ni

Restructuring is the only way to sort out 90% of the issues.

With states having full control of their human and natural resources issues of state police, number of local govt and how its funded, judiciary, education and health policies etc will be addresses to a large extent.

These governors are only looking for their own pocket.

Sharing formula is just nonsense especially when everything goes yo the fg and then shared yo states and LGs.

Why can't every state have control of their God given natural resources. Those that think they have nothing are just being lazy. If they go back to the basics which is identifying the "factors of production" like we were thought in school everyone has something to offer.

Land, labour,capital and entrepreneurship. Just add ICT in this modern age and we will transform this country in leas than 10years.

1 Like 1 Share

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by wink2015: 12:42pm On Aug 10
STATES IN NIGERIA SHOULD LEARN HOW TO CREATE NATIONAL WEALTH INSTEAD OF FOCUSING ON SHARING THE LITTLE ONES COMING FROM CRUDE OIL SALES/VAT FROM LAGOS STATE.

If Northern governors do not step up their agriculture in the coming future they risk suffering the economic effect of lack of investment.
Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by NgwaManNaija4LF(m): 12:44pm On Aug 10
Ekinematics:



South east you mean grin

Eastern Nigeria I meant, nothing like South south in Nigerian constitution, let me educate you illiterate.

2 Likes

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by NgwaManNaija4LF(m): 12:45pm On Aug 10
Ekinematics:



South east you mean grin

Eastern Nigeria I meant, nothing like South south in Nigerian contitution, let me educate you illiterate.

1 Like

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by follock007(m): 12:50pm On Aug 10
you're already biting more than you can chew. you don't even consider if half of president budgets is inside your proposed 42%... what happened to your usual 35%? you're not the only heads of the state, the president equal to you al.. stop this mockery

1 Like 1 Share

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by Dansuqi: 12:53pm On Aug 10
NgwaManNaija4LF:


Eastern Nigeria I meant, nothing like South south in Nigerian contitution, let me educate you illiterate.
Eastern nigeria is not also in the constitution mr.what we have is six geo zones.stay on your own and leave ss

4 Likes

Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by israelmao(m): 12:54pm On Aug 10
Demands keep increasing but no tangible physical development.
Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by chloride6: 12:54pm On Aug 10
Now that LG cash is out

cheesy
Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by starstaz(m): 12:55pm On Aug 10
oluwasegun007:
Why can't they request for 80%

So that federal government can use the remaining to finance Efcc to monitor their allocation
Let us call it strategic combat to cut some slack first. And u come back again to do d finishing.

20% is okay for d FG to do foreign service ,finance and use d Efcc to monitor how they loot d 80% by the State. my guy ur head dey there.
Re: Revenue Formula: Governors To Demand 42% Of Federal Allocation by ibechris(m): 1:11pm On Aug 10
ijustdey:




… seek more cash for salaries, security, roads , others

… want FG ’s share slashed from 52 .68 % to 37 %

… review committee to be inaugurated on Thursday





https://punchng.com/revenue-formula-govs-to-demand-42-of-federal-allocation/



That is not how to run a country...seriously!. Federal feeing states with crumps while states are lazying about with free money. No wonder there are no visible development in many states in the country. Apart from Lagos,no state is self sufficient and our problems will balloon when the solar cars will take over from combustible engines. Then our oil will be like coal. I know some people will say God forbid, but that is the reality that will shall be facing in due course.



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