RMAFC restates commitment to review revenue sharing formula

August 20, 2021 7:06 pm

The Revenue Mobilisation and Fiscal Allocation Commission (RMFAC) has restated its commitment to reviewing revenue sharing formula in the country.

Modu Aji, commissioner for RMFAC, restated the commitment at an interactive session with officials of Yobe state government, in Damaturu, the state capital, on Friday.

In June, the commission commenced the review of the revenue allocation formula.

Aji, who represents Yobe at the commission, said he was mandated to interact with the state’s stakeholders to develop a platform that would be used in advising President Muhammadu Buhari.

He said several attempts were made in the past to review the sharing formula, but such efforts were unsuccessful.

“The current revenue allocation formula stands at 52.68 percent for the Federal Government, that is including a special fund for the FCT; Ecological, Stabilisation and Natural Resources Development Funds,” he said.

“You then have 26.72 per cent for the states and 20.6 per cent for Local Government Areas.

“This is the vertical arrangement at the moment and it has been the arrangement since 1992.

“Several attempts made to review the formula were unsuccessful due to change of governments, absence of the National Assembly, among others.”

In his remarks, Baba Wali, the secretary to the state government (SSG), commended the federal government for its commitment and determination to conduct the review.

Wali said that the current allocation formula favours the federal government, adding that there should be an increase in the statutory allocations to both the state and LGAs to enable them to fulfil campaign promises.

The SSG added that the increase would position the state to tackle issues of in security and ensure payment of the national minimum wage, among others.

In a similar event, the Bayelsa state government faulted the use of LGAs as a basis for revenue sharing in the country.

Duoye Diri, governor of Bayelsa state, said the existing formula needs to be review to show equity and fairness.