FG assures equitable revenue sharing formula, begins sensitization in states

FG assures equitable revenue sharing formula, begins sensitization in states

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[From BONIFACE OKORO, Umuahia]

Federal Government has commenced the sensitization of Nigerians aimed at mobilizing the populace to make their suggestions in the ongoing process to alter the current revenue sharing formula, assuring that it was willing to come up with an equitable, fair and just new revenue sharing formula after the inputs.

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Federal Commissioner representing Abia State at the Revenue Mobilization, Allocation and Fiscal Commission (RAMFAC), Dr. Chris Akomas, who led a Federal Government delegation to Abia State, Wednesday

The sensitization exercise which has been taken to the states is part of the ongoing process by the Revenue Mobilization, Allocation and Fiscal Commission (RAMFAC) in reviewing the subsisting vertical allocation formula which stipulates how revenues accruing to the federal government are shared, in percentages, among the three tiers of government that make up the federation: the federal, state and local governments.

The allocations are made based on the constitutionally-assigned responsibilities of the three-tiers of government.

The revenue sharing formula has been reviewed twice since 1999, with the subsisting formula showing that the federal government gets 48.5 per cent, States – 26.72 per cent and local governments – 20.6 per cent and Special Funds – 4.18 per cent (comprising the Federal Capital Territory – 1 per cent, Development of Mineral Production Areas – 1.68, FGN Derivation/Ecology – 1 per cent).

The Special Fund is held in trust by the federal government and can only be disbursed based on recommendation by RAMFAC when a state applies for the fund and is deemed qualified.

Federal Commissioner representing Abia State in RAMFAC, Dr. Chris Akomas, who led the federal government delegation to Abia State Wednesday, appealed to Abians to participate actively in making their contributions towards the review of the current allocation formula.

Addressing stakeholders in Umuahia, Akomas, a former Deputy Governor of the state, explained that the process commenced with RAMFAC’s advertisement and call for memoranda in July.

He said (RAMFAC) decided during its plenary that every Federal Commissioner should go back to their states to sensitize their people to enable them to understand what the Commission was doing and participate in the process.

“That is why we are here, to sensitize Abians on the need for them to know that this process is on, to make inputs, suggestions towards this; The sensitization is for you, each and everyone of us, to contribute our ideas towards the review of the revenue allocation formula. It is not only for the government and people at the federal level, but it is for everybody, up to the local government level; that the outcome will affect what happens to everyone, just as the subsisting formula now is affecting what happens to all of us,” said Akomas who is also the Chairman of Indices and Disbursement Committee of RAMFAC.

According to him, the sensitization would prepare Abians “to understand that they need to prepare and come up with a solid and formidable position as a State,” to be presented at the Zonal Public Hearing which is the next stage of the process to hold in all geo-political zones.

“Our hope is that you make your contributions to the committee set up by the state government. Please, feel concerned that this important for you and for me and our work at RAMFAC will be based on the inputs we get from you, to make an informed decision and come up with a formula, to the best of our knowledge, and trusting that God will crown our efforts, that will be acceptable to Nigerians and will be equitable, fair and just,” he said.

He expressed happiness that Abia State government has put together, a committee that would harness the views of her citizenry, adding that RAMFAC would also interface with the committee and provide it with all necessary assistance to help it to be better prepared for the zonal public hearing.

Earlier, the Commissioner for Finance, Dr Aham Uko, who is to serve as Chairman of the Abia Committee on the Review of Allocation Formula to be inaugurated next Tuesday, promised that the Committee would go further to set out modalities on how it would come up “with an all-inclusive position reflective of what Abia State wants our position to be in formulating the new revenue allocation formula.”

 Also, Secretary of Association of Local Government Chairmen (ALGON), Abia State chapter and Executive Chairman of Isuikwuato Local Government Area, Chima Agbaeze, assured that the body would participate actively in the Committee’s work, saying that the committee would reach out to the targeted audience to sensitize them to enable them to make useful inputs.

RAMFAC, after collating contributions from individuals and states, would pass its recommendations to President Muahmmadu Buhari who would present the document to the National Assembly to pass it into law before the new revenue sharing formula would become operational.

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