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…as Commission finalises work on fresh formula
All things being equal, a new revenue formula for the three tires of governments will be ready for presentation to President Muhammadu Buhari any moment, Nigerianpost can authoritatively confirm. Revenue Mobilisation Allocation and Fiscal Commission concluded works on the new formula early January.
Thereafter, the Commission, Nigerianpost learnt, has been working with the Office of the Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha, to secure a date convenient for the presentation to the president, and onward transmission to the National Assembly for deliberation and passage into law. A top official of the Commission, who spoke to this reporter in confidence on Wednesday, said:.
“Infact there is a possitive developmentaboutrevenueformula. “Between today (Wednesday) tomorrow and Friday, put your ears on ground. Something will happen. Just ask your colleague covering Villa to be alert. The document is ready; set for presentation to Mr. President,” he said. Efforts to get official confirmation from RMAFC Executive Chairman, Engr. Elias Mban, were futile. He neither picked his call nor responded to SMS sent to his known phone number. Contacted on phone, the Commission’s spokesperson, Mr. Chris Nwachukwu, said the media would becontacted anytime major development occurred with regard to new revenue formula.
He shunned further inquiries on the issue. Under current revenue sharing formula, whichbecameeffective in 1992, the Federal Government( Includingspecialfunds takes 52.68 per cent; state governments receive 26.72 per cent; while the 774 local governments take 20.60 per cent. Oil producing states receive 13 percent derivation. A push for review of the subsisting revenue formula started in the days of former President Chief Olusegun Obasanjo.
However, the RMAFC in 2001 saw the need to review the formula for balanced development of the country. The commission embarked on a nationwide consultation and met with notable figures on the issue. Mban, during one of the briefingsonrevenueformula effort last year, gave a rundown of past efforts. Proposal for new formula was first made by the Commission in August 2001, but the recommendation was withdrawn due to the compelling judgment of the Supreme Court on Suit No. SC 28/2001 of April5, 2002, which recognised the beneficiaries of the federation account as Federal, State and Local Governments.
