New formula for sharing Nigeria’s money among FG, states, LGs underway – RMAFC

Posted by Nwa Diokpa Featured, Latest Headlines, News Across Nigeria Wednesday, August 25th, 2021

(AFRICAN EXAMINER) – The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) says the revenue allocation formula review will be ready for presentation to President Muhammadu Buhari by the end of 2021.

The commission’s chairman Elias Mbam noted that the review was one of the major responsibilities of the commission and was last done in 1992, which was 28 years ago.

According to the constitution, Mr Mbam explained that the formula would remain in force for not less than five years.

“Proposal for a new revenue allocation formula for the three tiers of the government was first made by the commission in August 2001,” said Mr Mbam. “But the recommendation was withdrawn due to the compelling verdict of the judgment of the Supreme Court on suit number SC 28/2001 of April 5, 2002, which recognised the beneficiaries of the federation account as federal, states and local governments”.

He further explained that in December 2002, the commission presented another proposal for a new formula to the then-president.

“That Formula got to the verge of being passed, but again,” Mr Mbam noted, “the bill elapsed with the expiration of the tenure of the then National Assembly in May 2003. Furthermore, in 2003, attempts were made by the National Assembly to reconsider the Revenue Formula bill initially submitted, but the efforts were not successful”.

The commission added that it made efforts in 2014 to review the formula.|

He also revealed that the commission had advertised for submission of memoranda in the national dailies.

“Wide range consultation with major stakeholders is also in progress. I want to reiterate that the Revenue Mobilisation Allocation and Fiscal Commission is highly determined to produce within the shortest time possible a new revenue sharing formula that will be fair, just, and equitable to the three tiers of government,” said Mr Mbam. “The commission has programmed to complete its review process by the end of 2021”.

NAN