The Federal Government has promised to implement the outcome of the ongoing review of the current Vertical Revenue Allocation Formula being carried out by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC).
This review came about as there have been proposals of new figures for allocation between the three tiers of government.
The promise was made by the Secretary to the Government of the Federation (SGF), Boss Mustapha, who was represented by the Permanent Secretary in charge of political and economic affairs, Andrew David Adejoh.
He said, “On behalf of President Muhammadu Buhari, I wish to reassure all Nigerians that the federal government will implement the final outcome of the conclusion of this exercise as soon as the National Assembly enacts the relevant legislation to complete the processing.”
The new allocation recommends that 50.65 per cent be allocated to the federal government, 25.62 per cent for the state government, 23.73 per cent for the local government while derivation still stands at 13 per cent.
This was against the previous method, which allocated 52.68 per cent to the federal government, 26.72 per cent to the state government, 20.60 per cent to the local government while derivation is 13 per cent.
The SGF admitted that the present revenue allocation formula, both horizontal and vertical, is long overdue as the last one was done in 1992.
Mustapha said in a statement that, “Equally important is the fact this review should culminate in improved national development.
“Most importantly, contemporary issues since then, such as heightened insecurity, decaying infrastructure, need for appropriately matching statutory functions and tax powers, need to be taken into consideration.”
He also commended RMAFC for the consultative process it adopted to ensuring that the diverse views across all spectrums of the society were taken into consideration.
The chairman of RMAFC, Elias Mbam, on his part, has informed that the commission relied on its statutory powers of the 1999 constitution as amended for every step taken on the review.