Nyako calls for review of revenue allocation formula

Governor Nyako who spoke through his spokesperson, Ahmad Sajo decried the disparity in budget estimate which he traced to existing gaps in revenue accruing to states.
“The Revenue Allocation Formula is seriously schewed against Northern states and has negatively impacted on the development of key sectors in the north. The revenue allocation is based on natural resources and the Internally Generated Revenue, so the southern states especially the oil producing areas have double advantage, they get 13 per cent derivation and royalties from oil companies operating in the states,” he explained.
He said although factors like population and land mass are considered, they are negligible compared to the royalties and 13 per ecnt derivation accruable to the advantaged southern states.
The spokesman noted that “with the resources at their disposal, they are in better position to equip hospitals and schools and when the assessment teams go round they score them as the best.”.
Sajo defended the allocation of 59 per cent of the 2014 budget for recurrent expenditure in the state, saying the Nyako administration is concerned with human capital development, being the most effective means of eradicating poverty.
He also said the urgent need for infrastructural and educational development in the state informed the decision by government to allocate higher votes to the subsectors, adding that the N1.3 billion voted for agriculture was reasonable because government approach to the sector is based on capacity building in the sector.