TUC Advocates Review Of Revenue Allocation Formula

The Trade Union Congress of Nigeria (TUC), yesterday called for an urgent review of revenue allocation formula in the interest of the development of the local council areas and states.

The Chairman of TUC in Rivers State, Mr Chika Onuegbu, said in Port Harcourt that reviewing the formula would ensure maximum development in the country.

“It is our considered opinion that the local and state governments should formally be given more responsibilities of the revenue allocation.

“The state governments should be getting 40 per cent of the federal allocation; the federal government should be given 35 per cent and local governments 17.5 per cent; he said, adding that the 7.5 per cent should be kept for special funds going by the Supreme Court ruling,” Onuegbu said.

He also said the National Assembly should review the present allocation formula to ensure true federalism.

According to Onuegbu, if Nigeria must develop, revenue should be matched with actual responsibility.

“True federalism will encourage the various state governments to develop the economy of the state in its areas of comparative advantage.

“It will also ensure fiscal efficiency, social justice and political stability, which will guarantee growth and sustainable development,” he said.

Onuegbu said that the Federal Government, being very far from the people, had made the discharge of its responsibilities ineffective.