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FG Takes 50.65%, Retains 13% Derivation In New Revenue Sharing Formula

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The Federal Government has proposed an adjustment to the nation’s revenue sharing formula, allocating 23.73 percent to local governments as against the previous 20:60 percent.
Other adjustments include Federal Government, 50.65 percent as against 52.68 percent; state governments 25.62 percent as against 26.72 percent; while it retained 13 per cent derivative for the oil-producing states.
The Secretary to the Government of the Federation (SGF), Boss Mustapha, who made the Federal Government’s position known to Nigerians during a public hearing in Abuja, said that the government considered a number of things before arriving at its conclusion.
According to Mustapha, the Federal Government considered its increasing visibility in sub-national responsibilities due to weaknesses at the level, citing primary health care, basic primary education, increasing level of insecurity and increased remittances to state and local governments through Value Added Tax (VAT) sharing formula, where the Federal Government has only 15 percent and the states and local governments share 50 percent and 35 percent, respectively.
Mustapha, who was represented by the Permanent Secretary, Political and Economic Affairs, Mr. Andrew Adejoh, said that the current administration would implement whatever formula was passed by the National Assembly.
He said, “On behalf of the President, Muhammadu Buhari, I wish to re-assure all Nigerians that the Federal Government will implement the final outcome of the conclusion of this exercise as soon as the National Assembly enacts the relevant legislation to complete the process.”
The SGF said, however, that the responsibilities shouldered by each tier of government should guide the Revenue Mobilisation Allocation and Fiscal Commission in the new formula.
Mustapha said that a lot of the resources allocated to the Federal Government were spent on providing services that were the responsibilities of state governments.
According to him, “We are all agreed, as Nigerians, that the present Revenue Allocation formula, both vertical and horizontal, is long over-due for a review not only because the last one was done in 1992 but most importantly, contemporary issues since then, such as heightened insecurity, decaying infrastructure, need for appropriately matching statutory functions and tax powers, need to be taken into consideration.
“The Federal Government has keenly followed all the geo-political consultative process and it is important that we remind ourselves that review of revenue cannot and should not be an emotional or sentimental discussion and it cannot be done arbitrarily.
“All over the world, revenue and resource allocation has always being a function of the level of responsibilities attached to the different components or tiers of government. It is therefore important that this current exercise rests squarely on the 1999 Constitution (as Amended).
“The Second Schedule of the Nigerian constitution contains 68 Items on the Exclusive Legislative List, and these are areas in which the Federal Government is supposed to use resources accruing to the federation to provide services and related development needs. On the other hand, the 30 items on the Concurrent requires both the Federal and State Government to address.
“It is, thus, very clear that for us to have an endearing vertical review of the present revenue allocation formula, we must first agree on the responsibilities to be carried out by all the tiers of Government.
“In order to appreciate the position of the Federal Government, it is also necessary I share with us the vertical disbursement of the Federal Government’s share of 52.68%, which is as follows: Disbursement of the FGN Share of 52.68%; Consolidated Revenue Fund (CRF)48.50%; Federal Capital Territory (like a state)1.00%; Natural Resources Development Fund (states are the beneficiaries)1.68%; Ecological Funds 1.00% (45% to NEMA, NEDC, NALDA and NAGGW, 55% addressing ecological challenges at Sun-National levels); Stabilisation Account 0.50% (25 % – 0.125 to NSIA and 75% 0.375 managed by OAGF and mostly utilized for emergency requests by states).
“Similarly, within the Consolidated Revenue Fund, disbursements are made for Debt Servicing, Statutory Transfers, Salaries, Pension and Gratuities, capital supplementation amongst others.
“It is, therefore, clear from the above that the Federal Government spends most of its resources on and for the state and local government levels. When you juxtapose this with the equally greater number or responsibilities on the Exclusive Legislative List, you would even want to make a case for greater allocation to the Federal Government.
“However, the Federal Government has taken cognizance of the growing clamour for a review of the present vertical revenue allocation formula, President Muhammadu Buhari’s commitment to ensuring resources for development get to the poorest of the poor in our rural communities, imperative to incorporate local communities in our security architecture as well enhancing equitable and inclusive national development.
“Alongside the above, other considerations that informed the Federation Government’s position on the review of the present vertical revenue allocation formula included Federal Government’s increasing visibility in Sub-national level responsibilities due to weaknesses at that level e.g Primary health care, basic primary education; Increasing level of insecurity and increased remittances to State and Local Governments through the Value Added Tax sharing formula, where the Federal Government has only 15 % and the States and Local Government share 50% and 35% respectively.
“As an interim and immediate measure, the Federal Government, is therefore, proposing the following: Federal Government 50.65%; State Government 25.62 %; Local Government 23.73% and Derivation Allocation 13 %.
“It is important to restate that revenue allocation should be done constructively in the face of a dwindling national revenue base and the imperative for states to generate their IGR. Equally important is the fact that this review should culminate in improved national development.”
In his remarks, the Minister of the federal Capital Territory, Mr. Bello Mohammed, asked for more funding of the Federal Capital Territory, in view of its massive developmental needs.
He said, “Because of the massive expansion, for us to be able to develop the city to match the population expansion, we need to have a special funding status and that is our appeal to the commission and I am sure by the grace of God they will work towards it.”
Earlier, the Chairman of Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Engr. Elias Mbam, had said that the review of the revenue allocation formula became necessary because the last review was in 1992.
He added that there have been obvious changes in the nation’s socio-cultural, political and economic environments since that time.
“As you are aware, the 1999 Constitution of the Federal Republic of Nigeria (as amended) empowers the commission to periodically review the revenue sharing formula and principles in operation to reflect changing realities,” he said.

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Fubara Dissolves Rivers Executive Council

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Rivers State Governor, Sir Siminialayi Fubara, has dissolved the State Executive Council.

The governor announced the cabinet dissolution yesterday in a statement titled ‘Government Special Announcement’, signed by his new Chief Press Secretary, Onwuka Nzeshi.

Governor Fubara directed all Commissioners and Special Advisers to hand over to the Permanent Secretaries or the most Senior officers in their Ministries with immediate effect.

He thanked the outgoing members of the State Executive Council for their service and wished them the best in their future endeavours.

The three-paragraph special announcement read, “His Excellency, Sir Siminalayi Fubara, GSSRS, Governor of Rivers State, has dissolved the State Executive Council.

“His Excellency, the Governor, has therefore directed all Commissioners and Special Advisers to hand over to the Permanent Secretaries or  the most Senior officers in their Ministries with immediate effect.

“His Excellency further expresses his deepest appreciation to the outgoing members of the Executive Council wishing them the best in their future endeavours.”

 

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INEC Proposes N873.78bn For 2027 Elections, N171bn For 2026 Operations

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The Independent National Electoral Commission (INEC) yesterday told the National Assembly that it requires N873.78bn to conduct the 2027 general elections, even as it seeks N171bn to fund its operations in the 2026 fiscal year.

INEC Chairman, Prof Joash Amupitan, made the disclosure while presenting the commission’s 2026 budget proposal and the projected cost for the 2027 general elections before the National Assembly Joint Committee on Electoral Matters in Abuja.

According to Amupitan, the N873.78bn election budget covers the full conduct of national polls in 2027.

An additional N171bn is needed to support INEC’s routine activities in 2026, including bye-elections and off-season elections, the commission stated.

The INEC boss said the proposed election budget does not include a fresh request from the National Youth Service Corps seeking increased allowances for corps members engaged as ad-hoc staff during elections.

He explained that, although the details of specific line items were not exhaustively presented, the almost N1tn election budget is structured across five major components.

“N379.75bn is for operational costs, N92.32bn for administrative costs, N209.21bn for technological costs, N154.91bn for election capital costs and N42.61bn for miscellaneous expenses,” Amupitan said.

The INEC chief noted that the budget was prepared “in line with Section 3(3) of the Electoral Act 2022, which mandates the Commission to prepare its election budget at least one year before the general election.”

On the 2026 fiscal year, Amupitan disclosed that the Ministry of Finance provided an envelope of N140bn, stressing, however, that “INEC is proposing a total expenditure of N171bn.”

The breakdown includes N109bn for personnel costs, N18.7bn for overheads, N42.63bn for election-related activities and N1.4bn for capital expenditure.

He argued that the envelope budgeting system is not suitable for the Commission’s operations, noting that INEC’s activities often require urgent and flexible funding.

Amupitan also identified the lack of a dedicated communications network as a major operational challenge, adding that if the commission develops its own network infrastructure, Nigerians would be in a better position to hold it accountable for any technical glitches.

Speaking at the session, Senator Adams Oshiomhole (APC, Edo North) said external agencies should not dictate the budgeting framework for INEC, given the unique and sensitive nature of its mandate.

He advocated that the envelope budgeting model should be set aside.

He urged the National Assembly to work with INEC’s financial proposal to avoid future instances of possible underfunding.

In the same vein, a member of the House of Representatives from Edo State, Billy Osawaru, called for INEC’s budget to be placed on first-line charge as provided in the Constitution, with funds released in full and on time to enable the Commission to plan early enough for the 2027 general election.

The Joint Committee approved a motion recommending the one-time release of the Commission’s annual budget.

The committee also said it would consider the NYSC’s request for about N32bn to increase allowances for corps members to N125,000 each when engaged for election duties.

The Chairman of the Senate Committee on INEC, Senator Simon Along, assured that the National Assembly would work closely with the Commission to ensure it receives the necessary support for the successful conduct of the 2027 general elections.

Similarly, the Chairman of the House Committee on Electoral Matters, Bayo Balogun, also pledged legislative support, warning INEC to be careful about promises it might be unable to keep.

He recalled that during the 2023 general election, INEC made strong assurances about uploading results to the INEC Result Viewing portal, creating the impression that results could be monitored in real time.

“iREV was not even in the Electoral Act; it was only in INEC regulations. So, be careful how you make promises,” Balogun warned.

The N873.78bn proposed by INEC for next year’s general election is a significant increase from the N313.4bn released to the Commission by the Federal Government for the conduct of the 2023 general election.

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Tinubu Mourns Literary Icon, Biodun Jeyifo

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President Bola Tinubu yesterday expressed grief over the death of a former President of the Academic Staff Union of Universities and one of Africa’s foremost literary scholars, Professor Emeritus Biodun Jeyifo.

Jeyifo passed away on Wednesday, drawing tributes from across Nigeria and the global academic community.

In a condolence message to the family, friends, and associates of the late scholar, Tinubu in a statement by his spokesperson, Bayo Onanuga,  described Jeyifo as a towering intellectual whose contributions to African literature, postcolonial studies, and cultural theory left an enduring legacy.

He noted that the late professor would be sorely missed for his incisive criticism and masterful interpretations of the works of Nobel laureate, Professor Wole Soyinka.

The President also recalled Jeyifo’s leadership of ASUU, praising the temperance, foresight, and wisdom he brought to the union over the years.

Tinubu said Jeyifo played a key role in shaping negotiation frameworks with the government aimed at improving working conditions for university staff and enhancing the learning environment in Nigerian universities.

According to the President, Professor Jeyifo’s longstanding advocacy for academic freedom and social justice will continue to inspire generations.

He added that the late scholar’s influence extended beyond academia into political and cultural journalism, where he served as a mentor to numerous scholars, writers, and activists.

Tinubu condoled with ASUU, the Nigerian Academy of Letters, the Wole Soyinka Centre for Investigative Journalism, the University of Ibadan, Obafemi Awolowo University, Oberlin University, Cornell University, and Harvard University—institutions where Jeyifo studied, taught, or made significant scholarly contributions.

“Nigeria and the global academic community have lost a towering figure and outstanding global citizen,” the President said.

“Professor Biodun Jeyifo was an intellectual giant who dedicated his entire life to knowledge production and the promotion of human dignity. I share a strong personal relationship with him. His contributions to literary and cultural advancement and to society at large will be missed.”

Jeyifo was widely regarded as one of Africa’s most influential literary critics and public intellectuals. Among several honours, he received the prestigious W.E.B. Du Bois Medal in 2019.

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