North central zone stakeholders propose 35% revenue allocation to states

Majority of the states in the North central zone, on Thursday, proposed a 39: 35: 26 per cent revenue sharing formula for the three tiers of government in the country.

The States made their positions known at a one-day North Central Zonal public hearing on the review of the current Revenue Allocation Formula (RAF), organised by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), at Government House, Lokoja.

In his remarks, Gov. Yahaya Bello of Kogi, advocated a sharing formula of 39, 35 and 26 per cent between the Federal, States and Local Governments, respectively, in order to effect the desired development of the country.

Bello, who was represented by his Deputy, Edward Onoja, stated that the main objectives of revenue allocation was to promote national unity and accelerate the economic growth of all tiers of government.

He lamented that the current formula in use had failed to achieve the desired aspirations of the citizens for development.

“We can no longer deny that a comprehensive review of RAF currently in use in Nigeria had become overdue.

”Currently, the Federal Government takes 52.68 per cent, the 36 states and the FCT split 26.72 per cent and the local government councils make do with 20.60 per cent.

“The nine oil producing states receive an additional 13 per cent as derivation revenue which is distributed among them depending on the actual contribution of each to crude oil receipts.

“Existential realities between the three tiers of government today necessitate a more equitable sharing plan for all revenues accruing into the federation account,” Bello said.

He, therefore, urged the review committee to take a critical look at the revenue allocation formula currently in use with a view to do the needful in the interest of Nigerians.

The News Agency of Nigeria (NAN) reports that the representative of Plateau state proposed a 40, 35 and 25 per cent formula, while Nasarawa state advocated 44, 35 and 21 for the three tiers of government, respectively.

Also speaking, the Commissioner for Land, Survey and Solid Minerals, Mr Bernard Unenge, who made the presentation on behalf of the Benue state government, advocated 30, 45, and 25 per cent for federal, states and local governments, respectively.

On her part, the Kwara State Commissioner for Finance, Mrs Florence Oyeyemi, in a virtual presentation, advocated a 33, 30 and 27 per cent sharing formula, respectively.

Dr Joel Akowe, on behalf of the Academia, proposed 30, 35 and 20 per cent respectively, while proposing a 15 per cent allocation to a Special Fund.

The Representative of the Network of Kogi state Non Governmental Organisations (KONGONET), Mr Muraina Idris, proposed 40, 27 and 33 per cent respectively, as he argued that this formula would enable the federating units and constituents to receive more attention in terms of development.

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