Wike Urges RMAFC to Increase Revenue Allocation to States, LGs

By Blessing Ibunge

Governor Nyesom Wike of Rivers State has called on the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to increase revenue allocation to states and local government councils to 40 and 20 per cent respectively and reduce revenue accruable to the federal government from the federation account to 40 per cent.

Governor Wike made the request Thursday in his keynote address at the public hearing on the review of revenue allocation formula for the South-south, organised by RMAFC in Port Harcourt, the state capital.

Represented by his deputy, Dr. Ipalibo Banigo, Wike said the current revenue sharing formula that allows the federal government to take 52.68 per cent, and the states and local government councils to take 26.72 per cent and 20.60 per cent respectively is unacceptable.

He stated that despite the changes that the country had experienced in the past 29 years, it was regrettable that it has continued to use the 1992 revenue formula prescribed by the military.

Governor Wike had faulted the use of the 1992 population figure, public school enrolment and public hospital bed spaces, land mass as formula for allocation of revenue.

Earlier, Wike, during a courtesy visit of the commission at the Government House, Port Harcourt, urgued that a more equitable formula should also take into cognisance the current population figure, as well as enrolment in private schools and the number of bed spaces in private hospitals.

“Using the same formula of 1992 as a basis for revenue allocation in this country is so unfortunate. And to worsen the situation under a democratic dispensation, since 1999 till now, our country has not reviewed the revenue allocation formula,” he said.

Governor Wike urged the commission led by its Chairman, Elisa N. Mbam, at the visit to reduce the revenue accruable to the federal government to 40 per cent because it has abdicated its responsibility of providing security and basic infrastructure to the federating states.

“You people should reduce the percentage of the federal government. Give them 40 per cent. Give the states 40 per cent, give local governments 20 per cent. In that way, most of the responsibilities that belong to the federal government will now be taken away and given to the states,” the governor said.

He noted that the current centralised federal system in operation in Nigeria has made it impossible for most states to look inwards and harness their potentials.

According to him, the country’s vast resources will continue to amount to nothing if the states are not allowed to use their resources to drive and determine their development.

“We cannot talk about operating a federal system without having a fiscal federalism. It is practically impossible. Let’s cancel that word federalism, we are operating a unitary system. But you cannot be saying we are operating a federal system, at the same time operating a centralised system,” he said.

The governor expressed reservation about the willingness of the present federal government to implement the recommendations of the RMAFC, which is holding public hearing on new revenue sharing formula across the six geopolitical zones.

Responding, the RMAFC Chairman, Mbam, explained that one of the major mandate of the commission is to review from time to time the revenue allocation formula to conform with changing realities.

Mbam, who explained that it has become necessary to review the current formula because the last review was done in 1992, observed that there has been a lot of changes in the political and socio-economic situation of the country.

According to him, the data that will be collated from the states will help the commission to arrive at a fair revenue formula.

“We believe that what we will get from states will help us to come up with a revenue formula that will be fair, just and equitable,” Mbam said.