New Revenue Formula: CLO seeks more funds for States, LGAs; Canvasses reduction of allocation to FG
By Dennis Udoma, Uyo
Civil Liberties Organisation (CLO), Akwa Ibom State Branch has called for more funds to the 36 States and the 774 Local Government Areas in the country.
It also advocates reduction in the allocation of funds to the Federal Government in the new revenue sharing formula being canvassed for the component units of the federation.
The call was made by the State Chairman of CLO, Otuekong Franklyn Isong, during an interactive meeting of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) with the Akwa Ibom State Government, the civil society, and other key stakeholders on the review of the Revenue Allocation Formula in Uyo, Akwa Ibom State, Thursday, September 2, 2021.
The pro-democracy group observed that the existing revenue sharing formula between the Federal Government, the 36 States of the Federation and the 774 Local Government Areas was prepared in 1992 (29 years ago) by the military administration, adding that the Revenue Formula had long been outdated and needed a review to reflect fair and equitable allocation of funds amongst the three tiers of government.
The international human rights organisation noted that in the current sharing formula, the Federal Government collects 52.8 percent, while the 36 States are given 26.72 percent with the 774 Local Government Areas allocated a paltry 20.60 percent.
The CLO, therefore, proposed that the 774 Local Government Areas which are at the grassroot, closest to the people, should be given 35 percent, the 36 States of the Federation 50 percent and the Federal Government 15 percent.
The CLO called for a further amendment of the Constitution of the Federal Republic of Nigeria, 1999 to decongest the Exclusive Legislative List such that the Federal Government is made to concentrate on Defence and Foreign Affairs, while the 36 States of the Federation are given the constitutional power over mines and minerals, including oil fields, oil mining, geological surveys and natural gas within their boundaries, while paying 10% of revenue accruing from those resources as tax to the Federal Government.
The pro-democracy group commended the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), for carrying out the nationwide sensitisation exercise on the review of the revenue sharing formula and thanked the Akwa Ibom State Commissioner for Finance, Dr. Linus Nkan, for extending invitation of the event to the Akwa Ibom State Branch of the CLO.
