‘New Revenue Formula Ready In 2012’

The Chairman, Revenue Mobilisation, Allocation and Fiscal Commission (RAFMC), Mr Elias Mbam, has given assurance that a new revenue allocation formula will be ready by the first quarter of 2012.

Mbam, who was fielding questions from newsmen in Abakaliki on Saturday, said: “I promise the nation that the new revenue formula would be ready for presentation to Mr President in the first quarter of  2012.’’

He said that the Commission was conscious of the sensitivity of the matter to the citizenry and was therefore, carrying out detailed consultations, studies and researches in fiscal matters.

“We are not reviewing the revenue allocation formula simply to allocate more money to states or local governments.

“We don’t just allocate money, we look at the responsibilities and apportion what we feel will be reasonable for the discharge of those responsibilities, and that will determine what goes to each tier of government.

“The committee set up to review the allocation is working assiduously to ensure that a comprehensive and detailed consultations, studies and researches are made. This is what is delaying the new formula.”

Mbam explained that review of the revenue formula was a constitutional issue, adding that the commission was empowered to review the revenue formula from time to time in conformity with changing realities.