A new revenue sharing formula will be ready by December
The Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC, on Sunday attributed half of Nigeria’s socio-economic and political problems to the wrong formula adopted by successive administrations in the sharing of revenue in the country.
Chairman of the Commission, Elias Mbam, who said in Abuja that getting the right revenue allocation formula in place would help solve these problems, assuring that if the Commission would be able to produce the new revenue sharing formula it has been working on, it would complement the efforts of the proposed national dialogue.
“If we are able to produce a revenue sharing formula that most Nigerians are happy with, over 50 per cent of what the national dialogue aims to achieve would have been done,” Mr. Mbam said.
Tracing the root of all the problems to the challenge of sharing political power and the allocation of the nation’s revenue earnings, the RMAFC chairman said if one of these two major contending issues was settled, the national dialogue could use that as an input in what they would be doing.
Assuring that the new revenue sharing formula was almost ready, with most aspect of the work already accomplished, Mr. Mbam said the commission was doing everything within its capacity to meet the December 2013 deadline.
“We have finished literature review, touring, public hearing, sensitisation and collected all our memoranda, and the next stage will be to analyse what we have, and that will be done during the two weeks retreat the commission will go from 28th of the month,” he said.
“At the retreat, we will produce the draft, which will then be confirmed by the plenary committee of the commission, after which we will print and forward accordingly to Mr President for approval.”
The new revenue sharing formula, the chairman said, would endeavour to reflect the responsibilities of each tier of government in the country – the federal, states and local governments, by considering the objective and subjective approaches.
He said the subjective approach involved the collection of views not based on statistical data, while the objective approach involved the use of statistical data, including the determination of the expenditures profile of each tier of government and the requirement for minimal provision of the services of each tier of government.
The collected data, the chairman said would be subjected to statistical analysis, the outcome of which he pointed out would form the basis of the country’s constitution.
He reiterated the commission’s commitment to be fair, just and equitable in producing a new revenue sharing formula for the country, based on the suggestions made by each of the areas visited as they favoured them.
“The commission, as an unbiased empire, will look more on what concerns the Nigerian future. It will look more on the best interest of all Nigerians and not to any particular section. So, despite the fact that each area made suggestions as it favours them, we will look at what is fair to Nigeria and what will promote the unity and socio-economic development of Nigeria,’’ he said
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