Reps propose upward review of derivation fund from 13 to 20 per cent

The House of Representatives will on resumption from the Easter recess, commence debate on the general principle of a bill which seeks to increase 13 per cent derivation fund to 20 per cent.

The private member bill was sponsored by Hon Kingsley Chima.

According to the ‘Explanatory Memorandum’, the proposed bill “seeks to alter Section 162(2) of the Constitution of the Federal Republic of Nigeria, 1999 as amended, in order to cure the inherent imbalance and insufficiency of fund and development-driven agitations based on the revenue from natural resources.”

In line with the legislative principles, the bill is to be referred to the Special Ad-hoc Committee on Constitutional Amendment chaired by the Deputy Speaker, Hon Idris Wase, for further legislative action.

Clause 2 of the Bill seeks to amend section 162(2) provides that: ‘The President, upon the receipt of advice from the Revenue Mobilisation, Allocation and Fiscal Commission, shall table before the National Assembly proposals for revenue allocation from the Federation Account, and in determining the formula, the National Assembly shall take into account, the allocation principles especially those of population, equality of States, internal revenue generation, landmass, terrain as well as population density: Provided that the principle of derivation shall be constantly reflected in any approved formula as being not less than thirteen per cent of the revenue accruing to the Federation amount directly from any natural resources.’

The proponent of the bill, however, proposed that: “The President, upon the receipt of advice from the Revenue Mobilisation Allocation and Fiscal Commission, shall table before the National Assembly proposals for revenue allocation from the Federation Account, and in determining the formula, the National Assembly shall take into account, the allocation principles especially those of population, equality of States, internal revenue generation, landmass, terrain as well as population density: provided that the principle of derivation shall be constantly reflected in any approved formula, as being not less than ‘twenty per cent’ of the revenue accruing to the Federation Account directly from any natural resources.

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The 624 new cases reported between March 28 and April 3 is a reduction from the 849 recorded the previous week…Reps propose upward review of derivation fund from 13 to 20 per cent

Reps propose upward review of derivation fund from 13 to 20 per cent