RMAFC says new revenue formula to be submitted to Buhari before December 2021 – Nairametrics

[ad_1]

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said that the revised revenue allocation formula will be ready for submission to President Muhammadu Buhari by the end of 2021.

The current review of the revenue allocation formula, which is one of the major responsibilities of the commission, is coming 28 years after the last one was done, which was in 1992.

This disclosure was made by the Chairman of the Commission, Elias Mbam, during a media briefing in Abuja on Tuesday, August 24, 2021, according to the News Agency of Nigeria.

He said that according to the constitution, the formula, which has been accepted as an act of the National Assembly, would remain in force for a period of not less than five years.

Investment One

What the Chairman of RMAFC is saying

Mbam in his statement pointed out that several attempts have been made by the commission in the past to review the revenue sharing formula, which had failed.

He said, “Proposal for new Revenue Allocation Formula for the three tiers of government (Federal, State and Local Governments) was first made by the Commission in August 2001.

“But the recommendation was withdrawn due to the compelling verdict of the Judgment of the Supreme Court on suit No. SC 28/2001 of April 5, 2002, which recognised the beneficiaries of the federation account as Federal, States and Local Governments.

“In December 2002, another proposal for a new Revenue Allocation Formula was presented to the then President, Federal Republic of Nigeria. That Formula got to the verge of being passed, but again, 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. However, an addendum to the original Report was prepared and resubmitted to the National assembly in September 2004.

“The proposed Revenue Allocation Formula passed through several processes both in the senate and especially at the House of Representatives, where a public hearing was conducted in 2006 on the subject. Yet, the Formula could not see the light of the day.

“Similarly, the Commission in 2014, made concerted efforts to review the Formula. All necessary processes required of the commission were concluded. However, the final process was inconclusive.”

The chairman said the process of sensitisation to the review of the revenue allocation formula had begun with visits to states and local governments to enlighten major stakeholders on the need to fully participate, make relevant inputs and submit memoranda to the process of the review.

He said, “The review of the revenue allocation formula will involve the following activities: literature review of Revenue Allocation in Nigeria dating back to the pre-independent period. Study of fiscal matters relating to revenue allocation; invitation to memoranda from the Public sectors, individuals and private sectors across the country to allow for wider coverage.

“Visitation to the 36 states and 774 Local Government Areas to sensitise and obtain inputs from stakeholders. Wide range consultations with major stakeholders including leaders and elder statesmen; public hearing in all the Geo-political zones; and administering of questionnaires.’’

What you should know

Jaiz bank

There has been a lot of clamour by stakeholders for the review in the revenue sharing formula, with more revenue in favour of the states and local governments. The commission commenced the review of the revenue sharing formula in June.

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

Of the federal government’s share of 52.68% share of revenue, 48.68% was further allocated to the consolidated revenue fund (CRF) with another 1% given to the federal capital territory (FCT).

Also, 1.68% is allocated to the development of natural resources while 1% is allotted to the ecological fund as well as 0.5% to the stabilisation fund.

[ad_2]

Leave A Reply

Your email address will not be published.