Business

FG to review vertical revenue sharing formula – RMFAC

Pinterest LinkedIn Tumblr

The Federal Government has restated commitment to the review of the extant vertical revenue allocation formula to the three tiers of government in the country.

The News Agency of Nigeria reports that Commissioner, Revenue Mobilisation and Fiscal Allocation Commission, Alhaji Modu Aji, stated this at an interactive session with officials of State Government, on Friday in Damaturu.

Aji, who is representing at the commission, said he was mandated to interact with the state’s stakeholders in order to develop a platform that would be used in advising President Muhammadu Buhari.

He said, “The current revenue allocation formula stands at 52.68 per cent for the Federal Government, that is including special fund for the Federal Capital Territory; Ecological, Stabiliation and Natural Resources Development Funds.

“You then have 26.72 per cent for the states and 20.6 per cent for local government areas.

“This is the vertical arrangement at the moment and it has been the arrangement since 1992.

“Several attempts made to review the formula were unsuccessful due to change of governments, absence of the National Assembly, among others.”

In his remarks, the Secretary to the State Government, Alhaji Baba Wali, (SSG), commended the Federal Government for its commitment and determination to conduct the review.

Wali said that the current allocation formula favored the Federal Government.

He, therefore, requested for an increase in the statutory allocations to both the state and LGAs to enable them to fulfil their campaign promises to the people.

The SSG said with the increase, the state would be well-positioned to tackle issues of insecurity and ensure payment of the N30, National Minimum Wage, among others.

OduNews on Google News

Submit press release, news tips to us: [email protected] | Follow us @ODUNewsNG