…Federal to get 50.65% vs 52.68% presently
… States to receive 25.62% vs 26.72% presently
…Local Govt 23.73% vs 20.60% presently
Nigeria is proposing a revenue sharing formula which will see the Federal Government receiving 50.65 percent of the total income in the federation joint account while states will be allocated 25.62 percent from the central revenue accounts.
The amount being proposed by the federal government showed that it will receive less that the 52.68 percent of the federation revenue it currently being allocation while states are to receive less that the 26.72 percent currently being allocated.
If the national Assembly approved the proposed revenue allocation formula, the local government, which is the third tier of government will be the ultimate beneficiary of the new formula.
The proposal jacked up the revenue to be accruing to the local government to 23.73 percent from 20.60 percent presently being allocated to the third tiers of government.
The present vertical Revenue Allocation Formula is: Federal Government 52.68 percent; State Governments 26.72 percent; Local Governments 20.60 percent and Derivation Formula 13 percent.
The Secretary to the Government of the Federation (SGF), Boss Mustapha, who gave the federal government’s proposal at the Town Hall meeting organized on the New Revenue Formula, in Abuja, Wednesday.
Mustapha who was represented by the Permanent Secretary, Political and Economic Affairs, Andrew Adejoh, said that the current administration would implement whatever formula was passed by the National Assembly.
“On behalf of the President, Muhammadu Buhari, I wish to reassure all Nigerians that the Federal Government will implement the final outcome of the conclusion of this exercise as soon as the National Assembly enacts the relevant legislation to complete the process,” Mustpha said.
The SGF, said however, that the responsibilities shouldered by each tier of government should guide the Revenue Mobilisation Allocation and Fiscal Commission in the new formula.
Mustapha said that a lot of the resources allocated to the FG was spent on providing services that were the responsibilities of state governments.