₦airaland Forum

The Federal Government says plans are under way to review the revenue sharing formula for Federal, States and Local Governments due to current economic realities.

The Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr Elias Mbam disclosed this to newsmen in Abuja on Tuesday.

He said that with the new sharing formula, states and Local Governments are expected to get more money as the plan is to expand and increase the scope of revenue collection.

According to the current revenue allocation formula, the Federal government gets 52.68 per cent, State, 26.72 per cent and Local government 20.60 per cent.

Also, 13 per cent of oil and gas federally collected revenue is returned to the oil producing states as derivation revenue to compensate for ecological disasters arising from oil production.

The formula was designed during former President Olusegun Obasanjo’s administration.

However, the RMAFC in 2013 saw the need to review the formula for balanced development of the country, hence it embarked on a nationwide consultation and met with notable figures on the issue.

In December 2014, the commission came out with a proposed new revenue formula but for some reasons, it never saw the light of day.

Five years on, the RMAFC chairman said the commission plans to constitute a standing committee by next week to review the revenue sharing formula.

Mbam said the commission would also push for the diversification of the nation’s revenue for a more sustainable growth and economic development.

“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.

“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 those aspects of the economy to their own benefit,’’ he said https://www.gistheaven.com/2019/08/fg-reveals-plan-to-review-revenue.html?m=1#more

OK, nicely said, we wait for the implementation.

"More balanced development " oga allow the nicer delta control their resources let the rest of us go and find our way

Lets see those posting high IGR figures and the real people who can generate income

They are going for that 13% trust me

Only if Northerners would agree

More money to the North

mrvitalis:
"More balanced development " oga allow the nicer delta control their resources let the rest of us go and find our way

Lets see those posting high IGR figures and the real people who can generate income

They are going for that 13% trust me

What has Bayelsa done with her 13%?

helinues:
What has Bayelsa done with her 13%?

are you mad? Dem swear for you?

helinues:
What has Bayelsa done with her 13%?

Its not your business ,its her money why are u concerned are u from bayelsa ? Let niger delta control their money ....if they want to usless if fine and good

Go and find what can save ur state

mrvitalis:
Its not your business ,its her money why are u concerned are u from bayelsa ? Let niger delta control their money ....if they want to usless if fine and good

Go and find what can save ur state

To my best of knowledge, Bayelsa is still part of Nigeria.. FYI, Niger delta are the only only region denied of controlling their resources.. So?

This is good but not enough. I support changing the current revenue allocation formula to allow more funds get to the states and local governments but I think altering the vertical allocation formular is not enough. There is a serious need to also change the current horizontal sharing formular.

This is 2019 and we can no longer continue to share revenue to states and local governments based on archaic principles such as land mass, terrain, primary school enrollment, hospital bed space, water supply, annual rainfall etc. such principles encourages laziness and breeds underdevelopment. Our revenue sharing formular should encourage development and create room for healthy completion. What we have at the moment, sadly, is a system that punishes development. The more developed you are, the less revenue you get.

Going forward, we should share revenue to States based strictly on the following principles: equality of States 50%, population 20%, internal revenue generation effort 20% and special needs 10%.

We also need to conduct a credible population census as soon as possible and remove the listing of local governments from the constitution. Henceforth, states should be allowed to create as many local governments as it deems fit.

all na scam jo

mrvitalis:
Its not your business ,its her money why are u concerned are u from bayelsa ? Let niger delta control their money ....if they want to usless if fine and good

Go and find what can save ur state

don't mind the Yoruba boy.

Its like taking billions from somehow, giving him a little of the money and asking what he has done with the ones he has been giving. Its disrespectful and insulting

helinues:
To my best of knowledge, Bayelsa is still part of Nigeria.. FYI, Niger delta are the only only region denied of controlling their resources.. So?

Bayelsa is Ijaw land only heaven knows ur tribe ,allow them control their resources

So u can control the one in ur place too

Its not ur business what they do with the money

Astark:
don't mind the Yoruba boy.

Its like taking billions from somehow, giving him a little of the money and asking what he has done with the ones he has been giving. Its disrespectful and insulting

They think its by quoting huge IGR let every state control their resources then we go know who is who

mrvitalis:
Bayelsa is Ijaw land only heaven knows ur tribe ,allow them control their resources

So u can control the one in ur place too

Its not ur business what they do with the money

Before detection of oil , Nigeria was built with Cocoa money , nobody is asking for refunds...

mrvitalis:
They think its by quoting huge IGR let every state control their resources then we go know who is who

even cross river will overtake Lagos. Igr means nothing and most Are even fake.

Let's see if the Ogun state they love to praise can pay salaries without oil money

helinues:
Before detection of oil , Nigeria was built with Cocoa money , nobody is asking for refunds...

cocoa was USED to build the western region not the entire Nigeria, groundnut was used to build the north.

helinues:
Before detection of oil , Nigeria was built with Cocoa money , nobody is asking for refunds...

Nigeria was built on cocoa what ? Firstly thats a lie
Cocoa was used to build the south west

Palm oil and Cocoa (cross river and abia ) was used to build the eastern region

I have told yorubas we have internet now ,stop quoting your yoruba press

The truth is in open space

Now get back to ur hole

Astark:
even cross river will overtake Lagos. Igr means nothing and most Are even fake.

Let's see if the Ogun state they love to praise can pay salaries without oil money

The funny thing is they think lying ,hiding ur intention and playing people are intelligence
Internet and social media spilt their market

No wonder their formal governor wrote tibubu telling him how the east has over taken the west even after the war

mrvitalis:
Nigeria was built on cocoa what ? Firstly thats a lie
Cocoa was used to build the south west

Palm oil and Cocoa (cross river and abia ) was used to build the eastern region

I have told yorubas we have internet now ,stop quoting your yoruba press

The truth is in open space

Now get back to ur hole

Indomie generation trying to his uncle.. 2daful

Local government should be get more revenue than Federal and State combined.

If Mr. Buhari can get this across then i will declare one month free support for him alone.

helinues:
Indomie generation trying to his uncle.. 2daful

Awww facts are online uncle dont need to ask anything

No wonder your told u lies and u believed .

As if any state in the south west produce more cocoa than cross river

Go and read dont listen to your uncle

mrvitalis:
"More balanced development " oga allow the nicer delta control their resources let the rest of us go and find our way

Lets see those posting high IGR figures and the real people who can generate income

They are going for that 13% trust me

Some of you just post ignorantly. Nigeria is a Federation and must be treated as such. Go and research how other federations like Germany, Canada, etc operates. Resources are shared in all federation so as to allow for even development.

I also noticed your bitterness towards states posting high IGR figures. You are advocating for resource control and still hating on states that are putting so much effort into improving their internally generated revenue. Wtf is wrong with you?

Lagos is the most cheated State in Nigeria and leadership of the state hardly complain. Ordinary, Lagos should be getting 13% of all company taxes generated in the state the same way oil producing states gets 13% derivation from crude production. In accordance with international best practices, Lagos is also entitled to at least 1% of the total revenue of the federation as the former capital of the country.

So, instead of hating on Lagos and other south west states, you should be grateful for the sacrifices these states are making in the overall interest of the country.

seunmsg:
Some of you just post ignorantly. Nigeria is a Federation and must be treated as such. Go and research how other federations like Germany, Canada, etc operates. Resources are shared in all federation so as to allow for even development.

I also noticed your bitterness towards states posting high IGR figures. You are advocating for resource control and still hating on states that are putting so much effort into improving their internally generated revenue. Wtf is wrong with you?

Lagos is the most cheated State in Nigeria and leadership of the state hardly complain. Ordinary, Lagos should be getting 13% of all company taxes generated in the state the same way oil producing states gets 13% derivation from crude production. In accordance with international best practices, Lagos is also entitled to at least 1% of the total revenue of the federation as the former capital of the country.

So, instead of hating on Lagos and other south west states, you should be grateful for the sacrifices these states are making in the overall interest of the country.

I should not normally dignify ur ignorance with response ...but for people who would read and learn

In a federation the state or region control the resources and pay a certain quota to the central government which is now distributed equally ....there is no federation apart from nigeria where a state or region keeps less than 50% if what they generate

No where in my write up did i say they should not contribute to the central government i only said they should control their resources

As for lagos ...let each state control their resources lets see how lagos port would survive
Im very family with import as an igbo man ...its more cheap to import from lagos and clear in ladies then transport to the east than to clear in port harcourt

Batting cost and clearance cost are not the same in a the ports why ?

Let every state control their resources