Revenue allocation: Gov Obiano advocates 50% revenue for states, 30% for LGs, 20% for FG

Governor Willie Obiano of Anambra State has advocated for revenue allocation formula of 50% for the states, 30% for the local government areas and 20% for the Federal Government.

Under the  current revenue sharing formula, the federal government receives 52.68%, the states 26.72%, while the local governments get 20.60%. There is also provision of 13% for the oil  producing states.

The governor made the recommendation yesterday in Awka during a sensitization programme organized by the Revenue Mobilization Allocation and Fiscal Commission, RMAFC,.

The governor, who spoke through the deputy governor, Dr. Nkem Okeke said the review of revenue allocation formula in the country became necessary because the states bear the main crux of development of the nation.

According to the governor, the issues of security, healthcare, education and infrastructure development in the states require enormous resources and funding, arguing that the existing revenue formula is grossly inadequate to meet the needs of the states.

In his speech, the Federal Commissioner representing Anambra State in the Commission, Mr. Chima Okafor said revenue allocation from the Federation Account, as a specific Constitutional mandate of the Commission, aims to review from time to time the revenue allocation formula and principles in operation to ensure conformity with changing realities.

He said: ‘In compliance with the Constitutional provision and in view of changing socioeconomic and political dynamics of the nation, the commission has been prompted and compelled to commence full scale engagement of the representative of various stakeholders and the people nation-wide, in the process of fashioning a new revenue allocation formula for the country.

“Over the years, there have been crying needs and stifled agitation by many Nigerians for the review of the subsisting revenue sharing formula. It is, therefore, worthy of note that the imperatives of the review cannot be over-emphasized in order to fulfill the collective aspirations of Nigerians for sustainable development.

“Consequently, the sensitization exercise has been designed to enlist the interests of stakeholders through interactions at various levels in order to get informed and make useful inputs that can provide pathways for creating a workable template to assist the Commission in its task of evolving and bequeathing to the nation a fair, just and equitable new revenue sharing formula.

“Thus, I am soliciting for positive contributions at the interactive sessions and through your written memoranda that will be forwarded to the Commission.

“I wish to reiterate that the Commission is greatly desirous of providing within the shortest possible time, a generally acceptable new revenue sharing formula that will meet the yearning and expectations of the three tiers of government, which will also benefit the citizenry. I am glad to say that the impressive response shows the importance the state attaches to the programme and this exercise”

Leader of civil society groups in the state, Mr. Chris Asor also argued that if the country’s revenue was shared in favour of the states, there would be faster development across the nation, stating that the review was coming 29 years late.

“The lure to go to Abuja from the states would be reduced if the revenue of the states is increased because the people would prefer to remain in their states,” he said.