New Revenue Sharing Formula in Offing

Leadership

21 December 2010

New Revenue Sharing Formula in Offing

Abuja — Newly appointed chairman of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Engr. Elias Mbam, yesterday promised to deliver a new revenue formula for the three tiers of government, noting that the existing one was outdated.

Mbam, who made this known in his maiden press briefing in Abuja, also said the commission would do everything possible to block all revenue leakages that have over the years remained a huge challenge.

He described the current formula as a creation of the military regime and was no longer relevant, saying RMAFC would work out fresh modalities to properly guide President Goodluck Jonathan on the way forward.

Mbam said the Commission would set up a standing committee to address the new revenue-sharing formula and forward its recommendations to the president for submission to the National Assembly.

Under the current revenue formula, the federal government takes 52.68 percent; the state governments receive 26.72 percent while the 774 local government councils get 20.60 percent with 13 percent derivation revenue going to the oil-producing states.

"A standing committee will be established on a new revenue-sharing formula. When we do that, then we will be able to advise Mr President and make recommendations for onward transmission to the National Assembly for their consideration. That will be one of our major assignments in the near future.