The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said that the revised revenue allocation formula will be ready for submission to the Federal Government by the end of 2021.
The News Agency of Nigeria (NAN) reports that 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 in 1992.
The Chairman, RMAFC, Mr Elias Mbam made this known during the public hearing on the review of the vertical revenue allocation formula for the Northeast zone held in Gombe.
Mbam stated that the commission was committed to ensuring that the new revenue allocation formula captured the yearnings and developmental aspirations of Nigerians.
”The commission conducted similar exercises in other five geo-political zones of the country in order to obtain relevant data from relevant agencies for use in the review process.
”The wider engagement of stakeholders in the process of data gathering was to ensure an all-encompassing and inclusive process,” he said.
He said that studies on fiscal matters relating to allocation of federation revenues were also being carried out, adding that the processes were aimed at ensuring that the new revenue formula would be “fair, just and equitable.”
He expressed confidence that the participation and contributions in the public hearing would enrich the outcome and assist the commission in coming up with a revenue formula that would be acceptable to majority of Nigerians.
The chairman called for support at all levels of the review process to ensure that the process was brought to its “logical conclusion.”
While declaring the public hearing open, Gov. Inuwa Yahaya of Gombe state said that the hearing was apt and timely.
Yahaya said that the hearing would enable them review the challenges of economic development and an avenue for “diagnostic review of issues confronting revenue generation.”
“I urge resource persons and participants to discuss the issues at stake dispassionately in order to chart a way forward towards achieving the noble objectives of this workshop,” he said.
NAN reports that in the current sharing arrangement, the federal government (including special funds) is entitled to 52.68 per cent while state governments receive 26.72 per cent and local governments are to receive 20.6 per cent.
NAN reports that of the federal government’s share of 52.68 per cent, 48.68 per cent is further allocated to the consolidated revenue fund (CRF) with another one per cent given to the FCT.
Also, 1.68 per cent is allocated to the development of natural resources while one per cent is allotted to the ecological fund as well as 0.5 per cent stabilisation fund.