New revenue sharing formula ready this year — FG

The process to alter the national revenue allocation formula by the federal government, states and local governments starts July 2021, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said.

Under the current revenue sharing formula, the FG takes 52.68 per cent, the states 26.72% and the local governments, 20.60% with 13% derivation revenue going to the oil-producing states.

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There have been growing agitations for the revenue sharing formula to give more resources to the states, local governments and the export commodities producing states.

RMAFC in a statement said the review is targeted at equitable distribution of the accrued revenue into the Federation account to the three tiers of government and this will be concluded before the end of 2021.

Chairman of RMAFC, Engr. Elias Mbam, disclosed this recently in Abuja while receiving members of the National Assembly Service Commission led by Engr. Ahmed Khadi Amshi.

He said the review of remuneration for political and judicial office holders will equally take off once the federal government releases funds for it.

Mbam said the review will first concentrate on the vertical formula which has to do with sharing of revenue between federal, state and local governments.

There will also be a horizontal formula for sharing among states and among local governments.

He also said the review of remuneration for judicial and executive officeholders in the Federation is subjected to further legislation by National or State Assemblies for approval but not more than what RMAFC has recommended while its remuneration determination for legislatures at federal, state and local government is final.

Engr. Ahmed Amshi, on his part, pledged the collaboration of the National Assembly Commission in the area of manpower development considering that RMAFC has the same organizational structure as the National Assembly.