Vertical Revenue Sharing Formula Will Be Reviewed By FG – RMFAC

August 22, 2021
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Sharing formula

THE Federal Government has said it will review the extant vertical revenue allocation formula to the three tiers of government in the country.

The Commissioner, Revenue Mobilisation and Fiscal Allocation Commission, Alhaji Modu Aji, states this at an interactive session with officials of Yobe State Government in Damaturu.

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Aji, who is also the representative of Yobe at the commission, said he was mandated to interact with the state’s stakeholders in order to develop a platform that would be used in advising President Muhammadu Buhari.

He said, “The current revenue allocation formula stands at 52.68% for the Federal Government, that is including special fund for the Federal Capital Territory; Ecological, Stabiliation and Natural Resources Development Funds.

“You then have 26.72% for the states and 20.6% for local government areas. This is the vertical arrangement at the moment and it has been the arrangement since 1992.

“Several attempts made to review the formula were unsuccessful due to change of governments, absence of the National Assembly, among others.”

The Secretary to the Yobe State Government, Alhaji Baba Wali,  commended the Federal Government for its commitment and determination to conduct the review.

According to Wali, the current allocation formula favoured the Federal Government.

He, therefore, requested for an increase in the statutory allocations to both the state and LGAs to enable them to fulfil their campaign promises to the people.

Wali noted that with the increase, the state would be well positioned to tackle issues of insecurity and ensure payment of the N30,000 national minimum wage, among others.

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