Amaechi, Aliyu Seek Revenue Formula Review

Rivers State Governor, Rt. Hon. Chibuike Rotimi Amaechi, says an equitable, fair and just revenue sharing formula is germane to development in the country.
The governor made the assertion when some federal commissioners in the Revenue Mobilization and Fiscal Commission(RMAFC) led by Chief Nimi Dambo Kalabo paid him a courtesy visit yesterday in Government House, Port Harcourt.
Speaking through his Deputy, Engr Tele Ikuru, the Rivers State governor stressed that, “ the issue of revenue mobilization and allocation is core to the heart of the workings of government,’’ pointing out that it was high time a new revenue formula was worked out in the country.
Amaechi insisted that the present revenue allocation sharing formula where the producer gets less than others was unfair and undemocratic, emphasizing that it was an anomaly for the Federal Government to pay less to those who generate more.
Besides, he called for an improved allocation to the local government councils, saying,” if you say the local government areas are development centres, then more funds should be apportioned to them’’, while calling for an equitable sharing principle.
He assured that his administration would continue to partner with the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) in its sensitization drive on the new revenue formula for states of the federation.
Speaking earlier, the Federal Commissioner and the team leader, Chief Nimi Dambo-Kalabo, noted that the aim of the visit was to have an interactive session with the three arms of the government on the new revenue sharing formula with a view to ensuring that it is just and equitable, adding that “it would be in the interest of the state to bring in what should be done and not what the commission thinks it should be”.
He assured that when once the views of stakeholders were taken, a new and equitable revenue sharing would emerge, as he hinted of plans by the commission to conduct zonal workshops and fora across the country.
The federal commissioner commended the state government for the transformation and development of what he called the ‘’new garden city’’, further expressing appreciation for the hospitality they have received since their arrival.
Meanwhile, Governor Babangida Aliyu of Niger State has urged the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), to reduce Federal Government’s  share of federation account to 40 per cent.
Aliyu made the call in Minna yesterday when he received members of RMAFC who paid him a visit.
The governor said that under the current horizontal sharing formula, equality accounts for 40 per cent; population, 30 per cent; land mass 10 per cent; social factor, 10 per cent and revenue effort accounting for another 10 per cent.
He said under the proposed vertical sharing formula, 40 per cent of the fund should be shared based on equality of states; population, 30 per cent and land mass, another 30 per cent.
“Recent development in our national fiscal framework has introduced some factors into the dynamics of revenue sharing among the beneficiary levels of government in the country.
“These factors, unfortunately, are not so much in tandem with the desired revenue sharing objectives of the ideal federalism we are striving for’’, he said.
Aliyu said credible revenue sharing arrangement in a true federalism must be guided by the objectives of national integration, survival, justice, equity and efficient resource allocation.
The governor called for an interactive session with the government and federal law makers from the state to enable them to have first hand information on the proposed review.
This, he said, would put the state at a vantage position during debate.
He enjoined the media to educate Nigerians on why the proposed sharing formula should favour the states and local governments.
Aliyu said this is because they were closer to the people and for the much needed development at the grassroots.
Amb. Zubairu Dada who led the delegation, said they were in Minna to receive the input of the State Government and stakeholders on the proposed review of revenue allocation formula.
Dada, a Federal Commissioner with the RMAFC, said the visit would enable them to come up with acceptable formula that would guarantee a more peaceful and greater nation.
Our correspondent reports that based on the current vertical sharing formula, the federal government receives 52.68 per cent as against the states’ 26.72 percent from the federation account.