FEC Gets Proposal On New Revenue Formula Year-End
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) have commenced the process that will produce a new revenue sharing formula to be submitted to the presidency for transmission to the federal lawmakers for approval by year-end.
The current formula for the three tiers of government give 52.6 per cent to the federal government, 26.7 per cent states and 20.6 per cent to the local governments
“I want to reiterate that the commission is highly determined to produce, within the shortest possible time, a new revenue sharing formula that will be fair, just, and equitable to the three tiers of government,” stated the RMAFC Chairman, Elias Mba Tuesday in Abuja.
The new revenue sharing formula that is anticipated 28 years after the commission conducted a review, is expected to help address issues of poor infrastructure, ecological challenges, and quell the series of agitations for a review.
“The commission has programmed to complete this review process by the end of 2021. I am glad to observe that the response so far from Nigerians is very impressive,” Mba said.
Consequently, he sought the involvement of every Nigerian in the current exercise with relevant inputs that will enrich the exercise as well as unalloyed support to the commission to achieve its desired goals.
Listed in the 1999 Constitution as one of the 14 Federal Executive Bodies, RMAFC that was established to handle revenue allocation and fiscal matters continuously, has a committee that comprises representatives from all 36 states and the Federal Capital Territory (FCT).
As of August 8, all states and the FCT have a representative each in the committee, except Bauchi, Enugu, Imo, and Kogi.
