…From Dele Ogunyemi, Ibadan…
A new Federation revenue allocation formula is expected to be ready in Nigeria by December this year, the Chairman of the Revenue Mobilization Allocation and fiscal Commission (RMAFC), Engr. Ellas Mbam disclosed in Ibadan on Monday.
He made the disclosure in a media chat shortly after the opening ceremony of the South West zone public hearing on the review of the revenue allocation formula in the country holding at the Conference Centre of the University of Ibadan.
While insisting that “the new revenue sharing formula should be expected by the end of the year”, Engr. Mbam explained that the views of the people will form the basis of the new constitution.
In his welcome address to the participants drawn from Oyo, Lagos, Ogun, Osun, Ondo and Ekiti states, the RMAFC chairman appealed that the review exercise should not be politicized by stakeholders just as he observed that “the South West zone is renowned for its highly intellectual and robust contribution to national diabetes and dialogue.”
“I am optimistic that the public hearing for this zone will produce one of the most outstanding inputs in the review of the Revue Allocation formula,” he said, as he implored the participants and indeed all Nigerians to make inputs devoid of ethno-religious and regional sentiments.
The RMAFC chairman explained that the public hearing was aimed at further providing another veritable platform for Nigerians to express their views and submit memoranda on the review process and assured of his commission’s commitment to ensuring the full application of the principles of fairness, justice and equity in the review process.
Governor Isiaq Abiola Ajimobi of Oyo State, while formally declaring open the public hearing, stoutly condemned the current fiscal structure which favours the Federal Government with 52.68% of the total national revenue, saying it is at variance with the responsibilities of the other tiers of government.
Consequently, he recommended a review of the revenue allocation formula that will give 30 per cent to the Federal Government and 42 per cent to the states, with the local governments taking the remaining 28 per cent.
Governor Ajimobi stressed the need for fiscal equity saying that the responsibility of governance, both at the state and local government levels, had become so enormous but frustrating for the operators due to what he called inadequacy of resources.
He also expressed worries over the primary responsibilities of states and local governments which he said were being unnecessarily competed with by the Federal Government.
The governor called for the independence of RMAFC from the Federal Government which he said was an interested party in revenue mobilization and sharing formula.
He stressed the need for the creation of an Office of the Accountant-General of the Federation to be responsible to the National Assembly separate from the Office of the Accountant-General of the Federal Government.
Governor Ajimobi also pointed out that the issue of crises of population should be given a proper attention as one of the relevant determining factors for revenue allocation.
Osun State Governor, Ogbeni Rauf Aregbesola in his own presentation canvassed for a new revenue allocation formula that will give 35 per cent to the Federal Government, 40 per cent to the state Government and 25 per cent to the Local Government while the Federal Government should take care of the Federal Capital Territory from its own allocation of 35 per cent.
Governor Aregbesola argued that “direct allocation to Special Funds from the Federation Account is unconstitutional and illegal and should therefore be deleted.”
“If there is a need at all for a central pool, all the stakeholders should discuss and determine the modality for contributing to the pool,” Governor Aregbesola further submitted.