The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has said a new revised federation account revenue sharing formula will be ready and presented to President Muhammadu Buahri by the end of 2021.
The RMAFC Chairman, Engr Elias Mbam, disclosed this to journalists in Abuja, on Tuesday, during a media briefing.
He said the process for the review of the revenue allocation to the federal, state and local governments has commenced and will be completed before the year end.
The current sharing arrangement is as follows; Federal government (Including Special Funds) – 52.68%, state governments – 26.72%, local governments – 20.60% which tallies to 100%. The federal Government share of 52.68% is distributed as follows: (i) Federal government’s Consolidated Revenue Fund (CRF) -48.50%, (ii) Federal Capital Territory (FCT) 1.00%, (III) Development of Natural Resources 1.68% and (iv) Ecological Fund 1.00%.
There have been growing agitations especially from the states and local governments for the review of the revenue allocation formula which currently favours the federal government and hasn’t been reviewed for over 28 years. Agitators have said the revenue sharing formula doesn’t reflect the prevailing realities of the needs of the three tiers of government.
Engr. Mbam said the commission had made three futile attempts in the past to review the revenue allocation formula but wasn’t able to complete the process.
He said: “The commission is highly determined to produce within a short time a revenue formula that will be fair, just and equitable to all tiers of government.”