Current revenue sharing formula unconstitutional, says senate

The senate says Nigeria’s current revenue sharing formula is unconstitutional.

This followed a motion by Adamu Aliero, a lawmaker from Kebbi central, urging the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), to review the current formula for more funds to be made available to states and local governments.

According to the Aliero,  revenue sharing formula ought to be reviewed every five years, but the current formula has been used since 1999.

‎“Pursuant to paragraph 32 of the third schedule of the Constitution of the Federal Republic of Nigeria as amended, the revenue mobilisation allocation and fiscal commission was established to among other things review from time to time the revenue allocation and principles in operation to ensure conformity with changing realities,” he said.

“This would be possible provided that any revenue formula which has been accepted by an act of the national assembly shall remain in force for a period of not less than five years from the date of the commencement of the act.

“The present revenue allocation formula has been in operation before the commencement of this democratic dispensation in 1999 and there is no extant act of the national assembly accepting the present revenue allocation formula which means the formula in use is unconstitutional.”

The upper legislative chamber adopted the prayer of the motion, which is to review the formula to reflect the current economic realities of the country.

The current formula gives the federal government a larger share of revenues than the states.