RMAFC: We’ll Present New Revenue Formula To FG By December 2021

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Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said the revised revenue allocation formula would be ready for presentation to the Federal Government by the end of 2021.

RMAFC Chairman, Elias Mbam, made this known during a public hearing on the review of the vertical revenue allocation formula for the North East zone in Gombe.

“The commission conducted similar exercises in other five geo-political zones of the country to obtain relevant data from relevant agencies for use in the review process.

“The commission conducted similar exercises in other five geo-political zones of the country to obtain relevant data from relevant agencies for use in the review process.

“The wider engagement of stakeholders in the process of data gathering was to ensure an all-encompassing and inclusive process,” he said.

He said studies on fiscal matters relating to allocation of federation revenues were also being carried out, adding that the processes were aimed at ensuring the new revenue formula would be fair, just and equitable. He expressed confidence that the participation and contributions in the public hearing would enrich the outcome and assist the commission in coming up with a revenue formula that would be acceptable to majority of Nigerians.

The chairman called for support at all levels of the review process to ensure the process was brought to its logical conclusion.

While declaring the public hearing open, Governor Inuwa Yahaya of Gombe State said the hearing was apt and timely.

Yahaya said the hearing would enable them review the challenges of economic development and an avenue for diagnostic review of issues confronting revenue generation.

“I urge resource persons and participants to discuss the issues at stake dispassionately in order to chart a way forward towards achieving the noble objectives of this workshop,” he said.

In the current sharing arrangement, the Federal Government (including special funds) is entitled to 52.68 percent while state governments receive 26.72 percent and local governments are to receive 20.6 percent.

READ ALSO: Nigeria has 9th largest gas reserves, says RMAFC chairman

However,the six North East states have shared a divergent view over the review of the new revenue allocation and sharing formula in the country.

Delegates from Gombe, Adamawa, Bauchi and Taraba called for 40, 35 and 25 percent sharing formula for both federal, states and local governments while Borno called for a 45, 40 and 15 percent sharing formula for the three levels of government. Yobe state called for 40, 37 and 23 percent sharing formula. Governor of Gombe, Muhammadu Inuwa Yahaya, said the proposed 40, 35 and 25 percent sharing formula which was later supported by three other states of the zone, was a consensus view of the people of Gombe state.

However, he called on resource persons and other participants to discuss the issues at stake dispassionately so as to chart a way forward for the country.

“Diversification of the economy is the only panacea for the socio-economic development of our dear country. Through it, we shall be able to maximally harness and utilise the abundant natural resources bestowed on us by the Almighty Allah to rebuild the economy, and improve the living standards of our people,” he said.

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