₦airaland Forum

The Federal Government has officially commenced the process of reviewing the nation’s revenue allocation formula to meet current realities.

Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Bello Shehu announced the commencement of the review process at a press conference at Yar’Adua Centre in Abuja on Monday.

There are indication that the new formula would give more funds to the states of the federation.

Sources in the commission disclosed that government was planning to increase total allocation to the states to between 30 and 40% from the current formula which allocates 52.68%, 26.72% and 20.60% to the Federal, State and Local Governments, respectively.

Stakeholders at the briefing urged the government to push more resources to the sub-national, especially for infrastructure projects, including provision of electricity.

The Federal Government is already relinquishing 5% of its tax revenue to the states as contained in the recently signed national tax laws.

The RMAFC chairman said the aim of the review was to produce a fair, just, and equitable revenue-sharing formula that reflects the current responsibilities, needs, and capacities of the three tiers of government — Federal, State, and Local Governments —in line with the constitutional roles.

Dr Shehu said the Commission will carefully assess the needs, service delivery obligations, fiscal performance, and developmental disparities.

“Let me state clearly that this review will be inclusive, data-driven, and transparent. It will involve broad-based consultations with critical stakeholders, including the presidency, national assembly, state governors, ALGON, the judiciary, MDAs, civil society organisations, traditional rulers, the organised private sector, and development partners,” he stated.

The last review of the Revenue Allocation Formula was carried out in 1992; however, there were several executive orders from May 2002 to date to modify the formula to reflect emerging socioeconmic realities.

The Commission restated its commitment to integrating cutting-edge research, empirical data, and international
practices in its analysis.

Sources in the commission disclosed that government was planning to increase total allocation to the states to between 30 and 40% from the current formula which allocates 52.68%, 26.72% and 20.60% to the Federal, State and Local Governments, respectively.

The Federal Government is already relinquishing 5% of its tax revenue to the states as contained in the recently signed national tax laws.

Softmirror:
If anybody likes the should go and build brewery with their money or open bet Naija shop. Nothing concern Tinubu.

TimeManager:
With current increase in FAAC allocations through subsidy removal, that's going to be a windfall to the states.



I disagree with that part, any Governor that cannot deliver atleast 85% in his state, must be whisked away in EFCC's waiting van immediately after handing over.

-Kiss the truth!

Softmirror:
What I meant by nothing concern Tinubu is the reason I added that attachment. Nobody should be crying and calling Tinubu, Tinubu, Tinubu.............hold your governors accountable.

asfrank:
This man knows how to get things done. It's high time we concentrate on Governors for once. They have enough resources at their disposal to deliver lasting change in their respective states.

They can initiate any feasible project, embark of empowerment schemes with ease.
If your governor is not performing hmmm

TimeManager:
I get it, EFCC will even hold them by their balls, you can't get all that and squander it.

-Kiss the truth!

Zocalite:
Anoda Lamba.. for the gullible

The wicked tinubu removed subsidy and started giving the money to governors, the governors started looting it

Most govs are very happy with him, why not

Most federal roads in states are bad, the govs aren't doing it they are just renovating govt houses and building hotels

One miscreants will now say hold your govs accountable how?

Let each state use how generated income to run and federal government intervene in critical projects

Softmirror:
If anybody likes the should go and build brewery with their money or open bet Naija shop. Nothing concern Tinubu.

Softmirror:
What I meant by nothing concern Tinubu is the reason I added that attachment. Nobody should be crying and calling Tinubu, Tinubu, Tinubu.............hold your governors accountable.

destinychildolu:
Tinubu's type of governance is the easiest. Generate more money and spend. No strategic planning and thinking.

reiddecuti:
The mentality of this feeding bottle should stop. Let States go into full autonomy of resource control and pay tax to the FG.

Until there's full resource control by states as its supposed to be in a federating system, the development of this country will be stagnated.

Every achievement recorded will be at a snail spead.

Zocalite:
Anoda Lamba.. for the gullible

The wicked tinubu removed subsidy and started giving the money to governors, the governors started looting it

Most govs are very happy with him, why not

Most federal roads in states are bad, the govs aren't doing it they are just renovating govt houses and building hotels

One miscreants will now say hold your govs accountable how?

Let each state use how generated income to run and federal government intervene in critical projects


Instead of this sharing sharing sharing

Ordinary vat tinubu can't leave it for each state to collect and utilise

Still sharing

TimeManager:
With current increase in FAAC allocations through subsidy removal, that's going to be a windfall to the states.



I disagree with that part, any Governor that cannot deliver atleast 85% in his state, must be whisked away in EFCC's waiting van immediately after handing over.

-Kiss the truth!