Stakeholders in the North Central zone on Thursday failed to agree on a new revenue sharing formula for the tiers of government with their recommendations ranging from 29% to 35% for state governments.
The stakeholders, who shared their thoughts during the Public hearing of the current Revenue Allocation Formula (RAF) for the North Central Zone), organised by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), in Lokoja, however, were unanimous about the need to substantially reduce federal government’s allocation.
Speaking at the forum, Kogi State Governor, Yahaya Bello, said the reviewed formula would promote national unity and catalyze development at all levels of government.
He said: “We can no longer deny that a comprehensive review of RAF currently in use in Nigeria has become overdue. Currently, the Federal Government takes 52.68%, the 36 states and the FCT split 26.72% and the local government councils make do with 20.60%.
“The nine oil producing states receive an additional 13 per cent 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 revenues accruing into the federation account”, Bello added.
The governor, therefore, urged the committee to ensure that recommendations at the public hearings across the country are reflected in their final revenue allocation formula to be sent to the National Assembly in the interest of all Nigerians.
In her remarks, Kwara State Commissioner for Finance, Mrs. Florence Oyeyemi, proposed a 33%, 30% and 27% sharing formula for federal, states and local governments respectively.
This is even as the National Chairman, Persons Living With Disabilities (PLWDs), Mr Yahaya Ibrahim, proposed 39%, 29% and 32% allocations the three tiers of government respectively.
Similarly, a representative of Plateau State proposed a 40%, 35% and 25% formula, while an official of Nasarawa State proposed 44%, 35% and 21% for federal, states and local governments respectively.
In his remarks at the public hearing, the Chairman of RMAFC, Engr. Elias Mbam, cited Paragraph 32 (b), Part 1 of the Third Schedule to the 1999 Constitution of the Federal Republic of Nigeria (As Amended) to justify the commission’s ongoing exercise to ensure conformity with changing realities,
He expressed the hope that the stakeholders’ contributions would enrich the process and ensure that the new revenue allocation formula reflects the wishes and aspirations of Nigerians.
It would be recalled that Lagos State Governor, Babajide Sanwo-Olu, had earlier this month that proposed a 42% revenue share model to states from the Federation Account, during a two-day South-West Zonal public hearings organized by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) on the review of the current revenue allocation formula for the three tiers of government.
