The Kogi state governor, Alhaji Yahaya Bello, has advocated for a review of the current revenue sharing formula in order to attain the desired development for the country.
Governor Bello made the call Friday while declaring open a one-day North-central zonal public hearing on the review of the current revenue allocation formula organised by Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Lokoja.
Represented by his deputy, Edward Onoja, he said the main purpose of revenue allocation in the country “is to promote national unity and accelerated economic growth of all tiers of the government.”
He, however, lamented that the formula “currently in use has failed to achieve the desired development aspirations of the citizens.”
“We can no longer deny that a comprehensive review of the revenue allocation formula currently in use in Nigeria has become overdue. Currently, the federal government takes 52.68 per cent, the 36 states and the FCT split 26.72 per cent and the local government councils make do with 20.60 per cent.
“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,” he said.
He, therefore, advocated for “a revenue-sharing formula of 39%, 35% and 26% among the federal, state and local governments respectively in the interest of Nigerians.”
Earlier, in his welcome address, the chairman of the commission, Engr. Elias Mbam, stated that 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) “empowers the Commission to review from time to time the revenue allocation formula and principles in operation to ensure conformity with changing realities.”