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Wike Seeks Upward Review Of Revenue Allocation To States
Rivers State Governor, Chief Nyesom Wike, has urged the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to reduce revenue accruable to the Federal Government from the federation account to 40percent, and increase those of states and local government councils to 40 and 20per cent, respectively.
The governor said the current revenue sharing formula that allows the Federal Government to take 52.68percent, and the states and local government councils to take 26.72percent and 20.60percent, respectively was unacceptable.
Wike made the assertion when members of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) led by its Chairman, Chief Elisa Mbam paid him a courtesy call at the Government House, Port Harcourt, last Wednesday.
The governor observed that despite the changes that the country had been through in the past 29 years, it was regrettable that it has continued to use the 1992 revenue formula prescribed by the military.
Wike faulted the use of 1992 population figure, public school enrolment and public hospital bed spaces, land mass as formula for allocation of revenue.
He argued that a more equitable formula should also take into cognisance current population figure as well enrolment in private schools and number of bed spaces in private hospitals.
“Using the same formular of 1992 as a basis for revenue allocation in this country is so unfortunate. And to worsen the situation under a democratic dispensation, since 1999 till now, our country has not reviewed the revenue allocation formula.”
Wike urged the commission to reduce the revenue accruable to the Federal Government to 40percent because it has abdicated its responsibility of providing security and basic infrastructure to the federating states.
“You people should reduce the percentage of the Federal Government. Give them 40percent. Give the states 40percent, give local government 20percent. In that way, most of the responsibilities that belong to the Federal Government will now be taken away and given to the states.”
He noted that the current centralised federal system in operation in Nigeria has made it impossible for most states to look inwards and harness their potentials.
According to him, the country’s vast resources, will continue to amount to nothing if the states are not allowed to use their resources to drive and determine their development.
“We cannot talk about operating a federal system without having a fiscal federalism. It is practically impossible. Let’s cancel that word federalism, we are operating a unitary system. But you cannot be saying we are operating a federal system, at the same time operating a centralised system.”
The governor expressed reservation about the willingness of the present Federal Government to implement the recommendations of the revenue mobilisation and fiscal commission, which is currently holding public hearing on new revenue sharing formula across the six geopolitical zones.
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Chairman, Chief Elisa Mbam, explained that one of the major mandate of the commission is to review from time to time the revenue allocation formula to conform with changing realities.
Mbam explained that it has become necessary to review the current formula because the last review was done in 1992.
He observed that there has been a lot of changes in the political and socio-economic situation of the country.
According to him, the data that will be collated from the states will help the commission to arrive at a fair revenue formula.
“We believe that what we will get from states will help us to come up with a revenue formula that will be fair, just and equitable.”
He commended Wike for his developmental stride, and urged other states to emulate Rivers State.
Later during the South-South Zonal Public Hearing, the State Chief Executive, Chief Nyesom Wike, restated that the present revenue allocation formula cannot meet the present realities of our dear nation and the socio-economic development of all levels of Government.
Wike made this assertion during the South–South Zonal Public Hearing on the Review of the Current Revenue Allocation Formula at Hotel Presidential in Port Harcourt, yesterday.
Speaking through his Deputy, Dr. Ipalibo Harry Banigo, Wike said “it is very clear to anyone who cares to know that the Federal Government is overburdened and overloaded and cannot efficiently deliver a federal system as we envisage it in our Federation”.
According to the governor, the states needs to be encouraged to be able to build up their own potentials, adding that It was all part of encouraging inclusiveness and encouraging a sense of belonging.
The governor further said “in Rivers State, we are building 10 overhead bridges because we envisage the future, it is futuristic, we have a city with so much traffic and these 10 overhead bridges are a must, apart from the infrastructure that is going on in all our communities and 23 local government areas.”
Wike, who noted that bridges, jetties and educational Institutions all fall under the laps of the states, called for the reduction of the allocation of the Federal Government and an increase of the allocation to the states and local governments, stressing that this is what equity is all about.
Wike, who expressed delight that the commission had gone round and done sensitization, collected various data and indices, expressed the hope that all these would not be thrown away at the end of the day, and prayed that the feelings and aspirations of the Nigerians of today would garner their efforts and bring it to fruition.
In his address, the Chairman, Revenue Mobilization Allocation and Fiscal Commission, Engr. Elias Mbam, disclosed that the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) by virtue of Paragraph 32(b) Part 1 of the Third Schedule to the 1999 Constitution of the Federal Republic of Nigeria (As Amended) is empowered “to review from time to time the Revenue Allocation Formula and Principles in operation to ensure conformity with changing realities, provided that any Revenue Formula which had been accepted by an Act of the National Assembly shall remain in force for a period of not less than five years from the date of commencement of the Act”.
According to him, the commission has embarked on the process of reviewing the existing Vertical Revenue Allocation Formula, adding that the review became necessary because a lot of socio- economic and political changes have taken place since the last review in 1992.
The Governor of Rivers State, Sir Siminalayi Fubara, has approved a minor cabinet reshuffle in the State Executive Council.
Under the new disposition, Barrister Christopher Green, who until now served as Commissioner for Sports, has been redeployed to the Ministry of Justice as the Honourable Attorney General and Commissioner for Justice.
This is contained in an official statement signed by Dr. Honour Sirawoo, Permanent Secretary, Ministry of Information and Communications.
According to the statement, Barrister Green will also continue to coordinate the activities of the Ministry of Sports pending the appointment of a substantive Commissioner to oversee the ministry.
The redeployment, which takes immediate effect, was approved at the last State Executive Council meeting for the year 2025, underscoring the Governor’s commitment to strengthening governance, ensuring continuity in service delivery, and optimising the performance of key ministries within the state.
Rivers State Governor, Sir Siminalayi Fubara, has declared that his administration will ensure the delivery of developmental projects and the prevalence of peace in all parts of Rivers State.
The Governor emphasized that the achievement of these lofty ideals can only occur through the unwavering contributions of all Rivers stakeholders.
Speaking during the commissioning of the 10.7-kilometre Egbeda–Omerelu Road constructed by his administration, the governor said Rivers State can only move forward when its people choose unity over division.
He assured Rivers people that development projects would reach every part of the State but cautioned that progress cannot thrive where conflict persists.
Reflecting on the project, Governor Fubara recalled that the road was a promise he made during the inauguration of the first phase about a year ago.
“We made a promise that we were going to do this project, and today I am happy that the government has fulfilled that promise made to Emohua people, Egbeda community and Omerelu people,” he said.
He noted that the essence of governance is service to the people, adding that responding to their needs is a core responsibility of any administration.
“We decided to do this because you know where we are coming from, and if we don’t tell our story, many won’t know what we are doing. Even in the face of tribulations, we have remained focused on delivering the dividends of democracy. We will continue to serve our people with respect and honour,” he affirmed.
Governor Fubara also reiterated his support for President Bola Ahmed Tinubu, pledging to back all groups working towards securing the President’s victory in 2027.
Giving technical details of the project, the Permanent Secretary of the Ministry of Works, Dr. Austin Ezekiel-Hart, explained that the contract was awarded on October 27, 2024, to Messrs Johnson Roadworks Limited.
He said the road links communities in Emohua and Ikwerre LGAs and shortens travel time for motorists commuting from Ahoada East, Ahoada West and Omoku through Egbeda to Owerri in Imo State.
He added that the infrastructure features a 12-metre clearing width and an 8-metre asphalt surface, comprising a 50mm binder course and a 40mm wearing course. It is complemented by 24 kilometres of drainage channels with a 1.05m² cross-sectional capacity to ensure durability and efficient water flow.
In his remarks, the Chairman of Emohua Local Government Area, Dr. Chidi Lloyd, described the road as a crucial link for surrounding communities, significantly easing movement for residents.
He praised the governor for demonstrating continuity and consolidation and prayed for God’s strength to enable him to achieve even more for the people.
Governor Siminalayi Fubara says Rivers State remains the best investment destination for investors in the oil and gas sector.
Governor Fubara stated that since the economic development of Rivers State is closely connected to the growth of the oil and gas industry, his administration has continued to collaborate with the Federal Government and host communities to protect natural assets in the sector.
The Governor stated this during the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation Oil and Gas Roundtable in Port Harcourt.
Represented by the Secretary to the State Government, Dr. Benibo Anabraba, he pointed out that since the economy of Nigeria relies substantially on the oil and gas sector, his administration will continue to collaborate with relevant stakeholders to ramp up production.
“The Nigerian oil and gas sector is the lifeblood of our nation’s economy, contributing over 90% of Federal Government’s foreign exchange earnings. Similarly, Rivers State, home to numerous national and multinational oil and gas companies, is the centre of Nigeria’s hydrocarbon industry, with the State’s oil and gas resources generating over 40% of the country’s revenue.
“?Considering this, the survival and economic development of Rivers State are closely connected to the growth of the oil and gas industry. That is why, since the beginning of this administration, we have focused on safeguarding the national oil and gas assets in collaboration with the Federal Government, security agencies, communities and other stakeholders, and we will maintain this commitment for as long as it is necessary.
“Furthermore, we have established and maintained a conducive, peaceful, and secure environment for companies to open and flourish in the State as part of a strategic plan to stimulate our economy, generate jobs, and enhance the well-being of our citizens.
“We therefore recognise and applaud the vital role that indigenous companies are currently playing in bridging gaps and advancing the development of Nigeria’s oil and gas industry,” he stressed.?
Governor Fubara affirmed that Nigerian-funded companies can only succeed and make meaningful contributions to the nation’s economic prosperity when challenges that limit the nation are effectively tackled, and expressed his administration’s stand to support indigenous organisations such as the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation.
Declaring the roundtable open, the Governor assured the Nigerian-Owned companies in the oil and gas sector, that “we are ready and willing to respond positively to any administrative, policy, or legislative recommendations within our jurisdiction as a subnational State.”
The Founder of the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation, Mr Emeka ugwu-Ozu, disclosed that the summit, held only in an oil and gas producing place, is a forum for all in the industry to brainstorm and suggest best practices for local players.
“This roundtable discussion takes place in only oil and gas producing states, and it is intentional. And that is to make sure that sooner, it becomes like what we say is the equivalent of Houston in the United States of America.
“I would say that from what I have seen so far, Rivers State is back and open, safe and good for business. The oil and gas players should come and see what we have seen,” he said.