Commission assures Nigerians of new acceptable revenue formula

*Revenue Mobilisation, Allocation and Fiscal Commission says it is determined to produce a fresh and acceptable revenue template that will address emerging development realities in the country

Emmanuel Akosile | ConsumerConnect

The Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), has assured Nigerians that a fresh and acceptable revenue template that will tackle new development realities in the country will be produced.

Chief Elias Mbam, Chairman of Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), stated this development in an interview with the News Agency of Nigeria in Abuja, FCT.

Mbam took the opportunity to analyse the successful engagements, which he noted the Revenue Commission had with various stakeholders across the country.

Chief Elias Mbam, Chairman of RMAFC

The RMAFC also commended Nigerians for their effective participation in the  Commission’s Zonal Public Hearing for the emergence of a new revenue sharing formula in the country.

Chief Mbam reiterated the determination of RMAFC to come out with credible, acceptable and fair new revenue sharing formula for the country.

The Commission, he noted, will synthesise and analyse the various presentations from stakeholders’ across the six geo-political zones and the Federal Capital Territory.

Mbam specially applauded the Governors of 36 States of the Federation for mobilising their people to participate in this all important national issue massively and effectively.

Recall President Muhammadu Buhari inaugurated the Board of RMAFC June 27, 2020, and charged the members to be fair and just to all tiers of the government in the review of the current revenue allocation formula.

Buhari reiterated the Commission’s commitment not to compromise RMAFC’s constitutional mandate for whatever reasons.

Report also noted that consensus of the states and the Federal Government at the various zonal public hearing was  a reversal of the current sharing formula.

The existing formular gives 52.68 percent to the Federal Government, the states 26.72 per cent, the local governments, 20.60 percent, with 13 percent derivation revenue going to the oil-producing states.

Stakeholders then, agreed on a new formula for the country.

However, no consensus on what the new sharing formula should be, a decision to be taken by RMAFC, which has the constitutional right to do so, report stated.

The Federal Government had, through Mr. Boss Mustapha, Secretary to the Government of the Federation (SGF), proposed an increase in revenue allocation to local governments from 20.60 per cent to 23.73 percent.

It is also being proposed that allocation to the Federal Government be reviewed downward from 52.68 percent to 50.65 percent, states from 26. 72 percent to 25.62 percent, with allocation for derivation remaining at 13 percent.

The SGF said: “Development needs to start getting to the local governments for the nation to get fully developed.”

Mustapha as well stated that the issue of revenue allocation should be handled constructively, especially in the face of dwindling revenue, and the need for states to increase their internally-generated revenue (IGR).

“It is an important fact that this review should culminate in improved national development,” said he.