*Buhari receives Vertical Review of Revenue Sharing Formula
By; MKPUMA ENYINNA, Abakaliki
President Muhammadu Buhari on Thursday, received Vertical Review of Revenue Sharing Formula from the Chairman of Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Chief Elias Mbam, the commission proposed 1.3% for Development of Natural Resources.
According to him, the new revenue sharing formula is proposed to replace the existing one which was last reviewed 29 years ago adding that the review takes cognizance of the political structure of the country which has since changed following the creation of six additional states in 1996 and increase in the number of local government areas across the country.
“Today, the president of our dear country, Nigeria, Muhammadu Buhari welcomed my team at the Revenue Mobilization Allocation and Fiscal Commission as we presented him with the final report of the vertical review of the revenue sharing formula at the State House.
“The new revenue sharing formula is proposed to replace the existing one which was last reviewed 29 years ago in 1992.
“This review takes into cognizance the fact that the political structure of the country has since changed with the creation of 6 additional states in 1996 and the increase in the number of LGAs from 589 to 774.
“The new formula advices 45.17% for the federal government, 29.79% for state governments and 21.04% for the local governments – a 3.33% reduction in the current federal government Allocation and an increase of 3.07% and .44% for the state and local governments respectively. Under the Special Funds, we recommended 1.0% for Ecology, 0.5% for Stabilization, 1.3% for Development of Natural Resources & 1.2% for the FCT. “The President expressed gratitude and said the review is needed to help reduce the country’s infrastructural deficit, make more fund available to tackle insecurity, fight climate change and make life more meaningful for our growing population,” he said.