Nigeria: North Central Zone Govs Task Govt On Upward Review of Revenue Allocation

22 October 2021

The six state governors in the North-central have advocated for total review of the revenue allocation, urging the federal government to consider relinquishing portions of her share to the states and local government.

This was the decision of the stakeholders from the North-central zone yesterday at the zonal public hearing on the review of the current revenue formula organised by the Revenue Mobilisation Allocation and Fiscal Commission at Government House in Lokoja.

The various speakers had appealed to the federal government to review the allocation formulas in the interest of justice, fair play and good governance.

The Governor of Kogi State, Mr. Yahaya Bello, in his remark at opening ceremony explained that this the time to make room for the extra, back breaking burden which states bear in catering for over-bloated workforces particularly at third-tier level which could not be retrenched without creating worse security, economic or political problem.

Bello, who was represented by his Deputy Governor, Mr. Edward Onoja, lamented that the federal government had entered into all sorts of agreement with organised labour, including on minimum wage as well as enhanced professional careers which invariably mean more money out of already depleted gains.

In the various papers presented at the public hearing, the Kogi State Government had suggested that the revenue allocation should be reviewed.

Similarly Nasarawa State urged the federal government to take 40 percent share while 35 per cent would go to the state governments and local governments share would be 21 per cent.

While Benue State asked for federal, state and local governmentsn should receive 30 per cent, 40 per cent and 25 per cent for state and local government respectively.

The Kwara State Commissioner for Finance, Mrs. Florence Olabisi Oyeyemi, who participated through virtual arrangement, suggested that 33 per cent should go to the federal government while state and local should have 30 and 25 percent respectively.

The representative of Plateau State, who's name could not be ascertained as at time of filing this report posited that federal government should hold to40 percent and State and local government will share 35 and 25 percent each.

The Chairman of Revenue Mobilisation Allocation and Fiscal Commission , Mr. Elias N Nbam, in his welcome address pointed out the presence of critical stakeholders would further encourage the commission in its commitment to produce a new, fair, just and equitable revenue allocation formula.

Nbam said: "Your contributions will certainly enrich the process and assist the commission in coming up with a formula that will be acceptable to majority of Nigerians. As you may all be aware, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) by virtue of Paragraph 32(b), Part 1 of the Third Schedule to the 1999 Constitution of the Federal Republic of Nigeria (as amended), is empowered "to review from time to time the Revenue Allocation Formulae and principles in operation to ensure conformity with changing realities, provided that any Revenue Formula which had 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 commencement of the Act."

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