Governors and other Nigerians who have been pushing for a new revenue allocation formula may have won a major victory.
Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) chair Elias Mbam yesterday said it will produce a new, equitable and just sharing formula early next year.
Governors have been calling for a review of the formula which is largely skewed in favour of the Federal Government that, according to critics, has little to do, to the detriment of states and local governments.
The Federal Government takes 52 per cent from the federation account, leaving the 36 states to share 26.72 per cent. The 774 local governments get 20.60 per cent.
The Nigeria Governors Forum (NGF) revenue panel headed by Lagos State Governor Babatunde Fashola, has recommended a drastic reduction in the Federal Government’s allocation.
It proposes 35 per cent for the Federal Government, 42 per cent for the states and 23 per cent for the local governments.

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Good! But I still think the States should put more more emphasis on increasing their IGR. They cannot continue to depend on Federal allocation forever.

^-- I completely agree.

OAM4J:

Good! But I still think the States should put more more emphasis on increasing their IGR. They cannot continue to depend on Federal allocation forever.

Generating IGR would mean thinking and planning now; our inept / lazy leaders prefer to continue to go to Abuja with their begging bowls. Maybe this move will reduce the ridiculous pay scales in the legislative and executive arms of the federal government sha and hopefully, the states do not become frivolous with the increase

OAM4J:

Good! But I still think the States should put more more emphasis on increasing their IGR. They cannot continue to depend on Federal allocation forever.

True. But the FG need to hands-off oil receipts, states should tax and generate revenue from the businesss in their state, including oil companies. FG can argue for a tax on income too but it will be minimal

EX: As a Governor, how do you expect me to stop looking to Abuja when Abuja appropriated all my natural resource, my roads, rail, seaport, import-export processes, a lot of my cash cows, power generation and distribution e.t.c.  I want to be creative but with the FG practically putting a yoke on my neck with chains attached, it will be difficult.

All taxes should go to the state of source first, then we will send an agreed-to percentage to the FG. Also the FG must sell most of these companies they control, from steel to petrochemical to power generation. Let private concerns manage then while we tax their profits so they can attract investments and jobs to our states.

Even the RMAFC was appointed by the FG so who will they favour?

The all powerful FG is the issue.

Kilode?!:

True. But the FG need to hands-off oil receipts, states should tax and generate revenue from the businesss in their state, including oil companies. FG can argue for a tax on income too but it will be minimal

EX: As a Governor, how do you expect me to stop looking to Abuja when Abuja appropriated all my natural resource, my roads, rail, seaport, import-export processes, a lot of my cash cows, power generation and distribution e.t.c.  I want to be creative but with the FG practically putting a yoke on my neck with chains attached, it will be difficult.

All taxes should go to the state of source first, then we will send an agreed-to percentage to the FG. Also the FG must sell most of these companies they control, from steel to petrochemical to power generation. Let private concerns manage then while we tax their profits so they can attract investments and jobs to our states.

Even the RMAFC was appointed by the FG so who will they favour?

The all powerful FG is the issue.

I believe in resource control and weaker center too. But I do not see that happening any time soon in Nigeria.

While the agitation for true federalism and resource control continues, many of these state Governors need to be proactive like Fashola and find other sources of income.

Good idea