*Sets A December Date for Senate Presentation
The Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC, has announced that it will be ready to present a new revenue sharing formula to the President, Muhammadu Buhari, onward transmission to the National Assembly by December.
RMAFC chairman, Elias Mbam, who confirmed the readiness of the commission to present the new revenue formula, blamed logistics challenges for the failure of the commission to fulfill similar promises in the past.
According to him, ongoing consultation and sensitisation across the country are aimed at avoiding pitfalls of the past that made previous review attempts unsuccessful
“It is in our plan to stick with the deadline. However, nothing is cast on stone. We assume that all things will be equal,” Mbam said.
Revenue sharing formula, a controversial subject in Nigeria, refers to the proportion of resources accruing to the federation that goes to each of the components of the nation. Among others, it defines the proportion of resources to be retained in the territories where they are generated as well as what goes to the agencies of government that collect the revenues on behalf of the federation.
Under the current revenue sharing formula which came into operation during the Olusegun Obasanjo administration, the federal government gets 52.68 per cent, states 26.72 per cent while local governments share 20.60 per cent each month.
The arrangement resulted in calls for a change to ensure a more equitable allocation of accrued revenue.
An attempt was made in 2013 when RMAFC embarked on a nationwide consultation with the 36 states and other stakeholders with a plan to review the formula. However, politics and the eventual consequence of the federal government losing its allocation chunk delayed completing the implementation process even though former Chairman, Public Affairs and Communication Committee at RMAFC, Ambassador Zubairu Dada, said in a statement on December 19, 2013 that the draft new revenue formula was ready to be forwarded to then President, Goodluck Jonathan