FG Reviewing Revenue Allocation Formula to Correct Imbalances, Says RMAFC

Victor Ogunje in Ado Ekiti

The officials of the Revenue Mobilisation Allocation and Fiscal Commission (RMFAC) have arrived Ekiti State, as part of its nationwide sensitisation programme on the review of the current revenue allocation formula that would correct perceived imbalances in the existing formula.

Speaking while flagging off the programme in Ado-Ekiti yesterday, the Ekiti State Representative at the RMAFC, Mr. Philips Amujo, explained that the review exercise was informed by the fact that the political structures of the country had since changed with the creation of additional states and local governments.

Other reasons for the review include the inability of current vertical formula to adequately address the apparent mismatch between statutorily assigned functions and tax powers to each of the three levels of government.

Amujo assured that at the end of the exercise the current vertical revenue sharing arrangement would be reviewed to produce a fair template that could assuage every stratum of the Nigerian society.

He said: “I encourage the people of Ekiti State to participate actively in the process by providing inputs and submitting memoranda for possible consideration.

“The federal government, through RMAFC, is ready to complete the review within the shortest possible time and produce a new revenue sharing formula that will be fair to all the three tiers of government.”

The State Commissioner for Finance and Economic Development, Mr. Akin Oyebode, said the revenue formula is required to address emerging challenges in the country.

“The current sharing formula puts majority of our common resources in the hand of the federal government, while states, the engine room of economic activity and governance continued to suffer from tyranny of unfunded mandates,” Oyebode said.

He charged members of the commission to advocate and support activities that would enhance and increase revenues from the non oil sector and ensure a comprehensive review of the revenue formula.

Moreover, the Commissioner for Local Government Affairs, Professor Adio Afolayan, said the revenue sharing formula is long due for a review.