New revenue sharing formula ready December ― RMAFC

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said a new revenue sharing formula will be ready for presentation to President Muhammadu Buhari by December.

Federal Commissioner representing Oyo State, Mr Abimbola Kolade made this disclosure during the opening session of the sensitization programme for Oyo state held on Tuesday, at state Secretariat, Ibadan.

Speaking, Kolade said the commission was wary of the yearning of Nigerians for a review of the subsisting revenue sharing formula and was in the process of collecting data and resources from states with a view to meeting the December date.

Upon presentation to the President, Kolade said the proposed new revenue sharing formula is expected to be transmitted to the National Assembly for deliberation for the new formula to become an Act of Parliament.

He noted that the current review had become expedient with the current formula being an executive order of the President in 2002, while a last review of the revenue sharing formula was done in 1992.

Kolade said: “We expect that by December, we will be able to present something to the Presidency. The stages are about five. We are at sensitization stage then we will collect the data and resources from the states and come up with a formula to be transmitted to the President and then the National Assembly because it has to become an Act of Parliament.

“But on the part in the commission, I believe that by December, we should be able to come with a formula that the National Assembly will now deliberate on.”

Governor Seyi Makinde who was represented by his Chief of Staff, Mr Segun Ogunwuyi, held that the dialogue about a new revenue formula was long overdue.

He however said the dialogue at this time was timely especially amid calls for restructuring as well as secession.

In particular, Makinde asked the federal government to look at the ecological fund domiciled in the presidency and more fairly distribute the accruing fund to the federating units.

Presenting the state’s position, Oyo Commissioner for Finance, Mr Akinola Ojo said the state will support any review that will allow states and local governments have sufficient resources to meet its basic obligations.

He hinged his argument on more funds to be allocated to the states and local governments on the fact that the two tiers of government are closest to the people and more grassroot oriented.

The state’s proposal for the new formula, according to Ojo, is that the federal government takes 35 percent; the state government 35 percent; local government, 30 percent while 10 percent derivative revenue should go to the oil producing states.
He noted that the state’s proposal will help address infrastructural gap across the country and attend to the demands of Nigerians for better life.
The finance commissioner consequently prayed that the debate on revenue allocation should be geared towards meeting the nation’s economic needs rather than geopolitical and ethnocentric considerations.

Speaking for the state legislature, Deputy Speaker of the state Assembly, Honourable Abiodun Fadeyi asked for a revenue sharing formula thus: federal government, 38.45 percent; state government, 36-80 percent and local government, 24.95 percent.

Representing the state judiciary, Chief Registrar, High Court, Mrs Safiya Oyediran demanded the upward review of the state revenue percentage from 26.72 percent to 40 percent.

In particular, she called for a review of judges salary and allowance to cater for issues of judges vehicles purchase and maintenance, judges robe, magistrates vehicles, construction/renovation of courts buildings across the states and review of staff allowances.

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