By Adedapo Adesanya
Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr Elias Mbam, has disclosed that the agency was considering the review of the revenue sharing formula for the three tiers of government; the Federal, States, and Local governments.
Mr Mbam made this disclosure after he received an Award of Excellence from the Nigeria Civil Service Union on Tuesday in Abuja.
He explained that the review of the revenue allocation among the federal, states and local governments of the federation has become necessary due to the current economic realities the country is faced with.
Under the current revenue sharing formula designed during the President Olusegun Obasanjo administration, the federal government takes about 52.68 percent of the total revenue generation by the nation in a month, the 36 state governments including the Federal Capital Territory, Abuja get 26.72 percent and the 774 local governments share 20.60 percent.
Also, the nine oil producing states of the Niger Delta region receive 13 percent revenue as derivation to compensate for ecological damage of oil production in the region.
However, following years of demands for a review of the formula, the RMAFC in 2013 resolved to undertake a review to achieve a balanced development of the country.
To achieve that objective, the commission embarked on a nationwide consultation to the 36 states and also met with notable persons, including traditional rulers on the issue.
In December 2014, the commission came out with a proposed new revenue formula, which was submitted to the government. However, the report was not implemented.
Now, more than five years later, the RMAFC chairman said the commission plans to constitute a standing committee next week to start work once again on the review of the revenue sharing formula.
Mr Mbam said the commission would also pursue the diversification of the nation’s revenue base for a more sustainable growth and economic development.
“My agenda is to expand the sources of revenue for the federation. I will like to expand the cake that we are sharing so that people will get reasonable quantity.
“I intend to do this through diversification in areas outside oil and gas, and that includes solid minerals, agriculture and manufacturing.
“So, we will encourage states and let them know what is available outside oil and gas so they can develop those aspects of the economy to their own benefit,’’ he said.
Dipo Olowookere