The Kogi State Governor, Alhaji Yahaya Bello has advocated for a revenue-sharing formula of 39%, 35%, and 26% between the federal, state, and local governments respectively to effect development for the country.
Governor Bello stated this on Thursday during a one-day north central zonal public hearing on the review of the current revenue allocation formula organized by Revenue Mobilization Allocation and Fiscal Commission in government house Lokoja.
The Governor who was represented by his Deputy, Chief Edward Onoja , said the main objectives of revenue allocation were to promote national unity and accelerated economic growth of all tiers of government, stressing that the formula currently in use has failed to achieve the desired developmental aspiration.
“We can no longer deny that a comprehensive review of the Revenue Allocation Formula (RAF) currently in use in Nigeria has become overdue.
“Currently, the federal government takes 52.68 percent, the 36 states and the FCT split 26.72 percent and the local government councils make do with 20.60 percent.
“The nine oil producing states receive an additional 13 percent as derivation revenue which is distributed among them depending on the actual contribution of each to crude oil receipts.
“Existential realities between the three tiers of government today necessitate a more equitable sharing plan for all revenue accruing into the federation account” he stated.
He, therefore, urged the review committee to take a critical look at the revenue allocation formula currently in use to do the needful in the interest of the Nigerians.
Earlier in his welcome address, the Chairman of the commission Engr. Elias Mbam, revealed that the Commission, by Paragraph 32(b), Part 1 of the Third Schedule to the 1999 Constitution of the Federal Republic of Nigeria (As Amended) empowered the commission to review from time to time the revenue allocation formula and principles in operation to ensure conformity with changing realities.
He stated that, in consideration of the above provisions and since the last review in 1992, there have been several socio-economic and political changes in the country, noting that the commission has commenced the process of reviewing the subsisting revenue allocation formula to reflect these changing realities.
“The processes require active participation and contributions of all Stakeholders. Accordingly, the commission has designed processes and guidelines to ensure adequate participation of Nigerians” he said.
The Kogi State Commissioner of Finance, Budget, and Economic Planning, Hon. Asiwaju Idris, described the process as timely, saying if well conducted and implemented it will no doubt improve the living standard of every Nigerian and will as well boost the nation’s economy.
Other states that formed the north-central zone presented their views and recommendations to the committee.
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