[size=14pt]New revenue formula: Federal govt bides time[/size]
By Yusuf Alli 1 hour ago


• No new formula earlier than mid- 2012 • Oil producing states may push for 15 per cent derivation

Despite the receipt of a proposal from state governors for more cash, the Federal Government is bidding time on the agitation for the adjustment of the nation’s revenue allocation formula.

It was learnt that the Federal Government has preference for Sovereign Wealth Fund (SWF) than new revenue formula

Also, there were indications yesterday that funds are as well hampering the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).

But oil producing states may push for between 15 per cent and 20 per cent derivation.

At present, the revenue allocation formula is: Federal Government (52%); States (26.72%); and 774 Local Government Areas (20.60%).

But a committee raised by the Nigerian Governors Forum, headed by the Governor of Lagos State, Mr. Babatunde Raji Fashola, has recommended a drastic reduction in the Federal Government’s allocation.

The governors are recommending 35% for the federal government; States (42%); and LGAs (23%).

Investigation by our correspondent showed that the Presidency is not keen on the new revenue allocation formula because there are many issues to be resolved.

These issues are complete autonomy for local governments; acceptance of Sovereign Wealth Fund (SWF) by the governors; and a slight adjustment of the derivation percentage for oil producing communities.

A top source, who spoke in confidence, said: "The desire for new revenue formula in the country is riddled with politics between the Federal Government and the state governors.

[size=14pt]"The Federal Government may not consent to the adjustment of the revenue formula unless governors are ready for a constitutional amendment that will lead to a complete autonomy for local governments.[/size]

"We also have this wrangling between the presidency and governors over SWF Act. The governors are threatening to go to court. With their adamant posture, the presidency is also foot-dragging on the new revenue formula.

"Added to the disagreement on SWF, oil producing states want the derivation percentage to be increased from 13 per cent to between 15 per cent and 20 per cent.

"So, the agitation for this new revenue formula is beclouded by a few challenges which need to be addressed by the federal government and state governors."

A source in RMAFC however said: "We are ready to make recommendations for the new formula but our immediate challenge has to do with funds to gather data, meet stakeholders, and conduct empirical researches that would enable us reach conclusions on each tier of government.

"We are hopeful that the 2012 Budget will make provision for necessary field work required by the commission.

"So far, I think it is not practicable to have a new formula in place this year again. But I can assure you that we will do a thorough job and in line with the transformation agenda of President Goodluck Jonathan ensure that it is legally put into effect."

http://www.thenationonlineng.net/2011/index.php/news/21562-new-revenue-formula-federal-govt-bides-time.html

The Federal Government may not consent to the adjustment of the revenue formula unless governors are ready for a constitutional amendment that will lead to a complete autonomy for local governments.

This is a fundamental requirement for true federalism. Lets sit back and observe the hypocrisy of the governors while the saga plays out.

Beaf:

[size=14pt]New revenue formula: Federal govt bides time[/size]

The governors are recommending 35% for the federal government; States (42%); and LGAs (23%).

A top source, who spoke in confidence, said: "The desire for new revenue formula in the country is riddled with politics between the Federal Government and the state governors.

[size=14pt]"The Federal Government may not consent to the adjustment of the revenue formula unless governors are ready for a constitutional amendment that will lead to a complete autonomy for local governments.[/size]

""Added to the disagreement on SWF, oil producing states want the derivation percentage to be increased from 13 per cent to between 15 per cent and 20 per cent.

If GEJ manages to push this through and fix power, then he will have done a lot for his low standards. infact increase derivation to 25%

What difference does it make when the three tiers of government never give account of the monies they are allocated to?It is not about how it is shared and who gets what but what the allocation is spent on and how.

Nigerian politicians and public office holders goes to their offices with "ghana must go bags" for real a day after allocations are made available in their respective public accounts.

They greedily share the money that belongs to the people like vultures,stall all activities and wait for another allocation.That is how our resources goes.

redsun:

Nigerian politicians and public office holders goes to their offices with "ghana must go bags" for real a day after allocations are made available in their respective public accounts.

They greedily share the money that belongs to the people like vultures,stall all activities and wait for another allocation.That is how our resources goes.

agree wit you