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FG Takes 50.65%, Retains 13% Derivation In New Revenue Sharing Formula
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 Frowns At Slow Pace Of Ndele–Omofo–Egmini–Agba-Ndele Road Project ….Says Contract May Be Reviewed
Rivers State Governor, Sir Siminalayi Fubara, has expressed dissatisfaction over the slow progress of work on the 14.5-kilometer Ndele/Omofo/Egamini/Agba-Ndele Road project located off the East–West Road in Emohua Local Government Area.
Addressing newsmen during an inspection tour of the project on Tuesday, the Governor noted that the pace and quality of work being delivered by the contracting firm, Messrs Stream Co. & Equipment Limited, fell below acceptable standards.
He was accompanied on the tour by the Permanent Secretary, Ministry of Works, Dr. Austin Ezekiel-Hart, who briefed the Governor on the status of the project and adjoining infrastructure.
Governor Fubara, who appeared visibly unsatisfied with what he saw on the stretch of the road, said his administration would not condone mediocrity or allow public funds to be wasted on underperforming projects. He, therefore, hinted that a review of the contract may be imminent to ensure the delivery of quality infrastructure to the people.
“I can say here already that the contractor handling the road from the bridge to the East–West Road is not doing a good job. I’m not happy about it. When I get back, there will be a need to review that contract because I’m not impressed. They don’t have the capacity, and we need capacity because we must have value for whatever money we’re spending,” the Governor said.
The Governor, however, commended Setraco Nigeria Limited for the standard and pace of work on the 240-meter Agba-Ndele/Abua Bridge, which forms a major component of the project. He explained that the bridge, which his administration inherited, would significantly improve connectivity among communities in the area once completed.
Governor Fubara stated that the bridge will serve as a key link between communities in Abua/Odual, Ahoada-East, and Emohua Local Government Areas, reducing travel time and providing an alternative route to the East–West Road.
He emphasised that the project demonstrates his administration’s commitment to rural connectivity and inter-community access, which are central to his development vision for Rivers State.
“Where we are standing on is a bridge connecting Abua/Odual, Ahoada-East, and Emohua Local Government Areas. The community that is connected to this bridge is Agba-Ndele.
“Instead of running through the East–West Road to Ahoada-East and heading into Port Harcourt or out of it, this bridge provides easy access for the Abua/Odual people to cross into Emohua, Agba-Ndele, and access the East–West Road in minutes,” he explained.
Governor Fubara also expressed optimism that the bridge would be ready for use in early 2026, noting that Setraco’s expertise and performance met his administration’s expectations for quality and delivery timelines.
He highlighted that projects of such importance should be handled by firms with the capacity to meet government standards.
The Governor further remarked that once completed, the bridge would serve as a crucial economic corridor for farmers and traders, especially those involved in agriculture and cultivation of local produce across the beneficiary local government areas.
He maintained that his administration is determined to deliver people-oriented projects that promote connectivity, strengthen commerce, and enhance livelihoods across the State.
“I’m really impressed with what I’ve seen on the bridge. I’m very sure that before the end of January, it might be completely ready for us to walk through and even drive across,” Governor Fubara said.
Reaffirming his vision for Rivers people, the Governor noted that his development plan seeks to integrate all parts of the State through strategic infrastructure investments that promote mobility, social cohesion, and economic growth.
He explained that his government is executing projects across multiple local government areas to ensure balanced development and inclusivity.
Governor Fubara stated that the administration will soon address the deplorable state of the Abua/Ahoada Road, which he said, will be included in the 2026 state budget.
“Our vision is to connect the entire Rivers State together, especially communities that have challenges of access. The bridge here connects Abua/Odual and Ahoada-East to Emohua and Port Harcourt. It will ease movement, promote trade, and boost our economy because agriculture is strong on this side. Moving goods to the city won’t be a problem anymore,” he said.
Governor Fubara reiterated his administration’s commitment to delivering quality infrastructure that provides value for public funds and meets the aspirations of Rivers people.
Rivers State Governor, Sir Siminalayi Fubara, has unveiled plans to permanently relocate the dumpsite along the busy Port Harcourt Airport–Obiri-Ikwerre Road, describing the current location as both a public health threat and a damaging first impression for visitors arriving in Port Harcourt, the State capital.
The Governor made this known on Tuesday during an inspection of a proposed replacement site, which is a disused burrow pit near Bambo Estate, off Eneka Road in Igwuruta, Ikwerre Local Government Area.
The location is being assessed as a potential permanent dumpsite for the State.
Governor Fubara, who was conducted by the Board Chairman, Rivers State Waste Management Agency (RIWAMA), Dr Samuel Nwanosike, and its Managing Director, Dr Ibimina Wokoma, expressed concern about the environmental and health challenges posed by the existing site, which sits along a major entry point into the State.
“The kind of environmental hazards that we are facing there along the Airport–Obiri- Ikwerre Road; the smell on that road being the entrance into the State, we felt it’s not proper,” he said. “So, we are making alternative arrangements so we can have a permanent refuse dumpsite that meets acceptable standards.
“He added that the government would move swiftly to formalise ownership of the land and complete construction work on the access road to make the new site functional.“We have not concluded the issue of the burrow pit, but the access road, I think the government is doing something about it.
So, I will make sure that everything that needs to be done to ensure government owns this burrow pit is done,” he stated.
Governor Fubara also commended the Rivers State Waste Management Agency (RIWAMA) for what he described as a more assertive and improved approach to managing refuse across the State.In addition to the dumpsite inspection, the Governor also visited the Permanent Secretaries’ Quarters located in Elimgbu Town, Obio/Akpor Local Government Area, to assess the extent of ongoing construction work on the facility.
Rivers State Governor, Sir Siminalayi Fubara, has charged the newly appointed Secretary to the State Government (SSG), Barrister Benibo Anabraba, to uphold the dignity of his office, protect the interest of the State, and discharge his duties with honour, respect, and responsibility.
Governor Fubara gave the charge during the swearing-in ceremony of the new SSG, held on Monday at the Executive Council Chambers of Government House, Port Harcourt.
Describing Anabraba’s appointment as an act of divine favour, the Governor said positions of leadership are not attained by our own human effort but by God’s grace in our lives.
“Let me first congratulate you. I’m using the word ‘congratulations’ because a few of us, not by our power but by the special favour of God, find ourselves in exalted positions. It’s not because we are the best, but only by His grace.”
Governor Fubara noted that the Office of the Secretary to the State Government is one of great honour, occupied by only a few since the creation of Rivers State, and urged the new appointee to serve with humility and dedication.
He, however, expressed confidence in Anabraba’s capacity to deliver, citing his past record as a principal officer of the Rivers State House of Assembly.
“This position is a rare privilege. Guard that office with honour. Discharge your duties with respect. Protect the interest of Rivers State. When you leave office, let it be with honour, and that only comes through responsible service.
“I know you’re a dedicated person. This opportunity is not for show or display of power. It’s a call to duty,” he cautioned.
The Governor emphasised that the current administration is focused on restoring confidence of the people because peace has been achieved in the State.
He enjoined the new SSG to align with the vision of the administration and contribute meaningfully to the collective progress of Rivers people.
“We are emerging from a very difficult period and must reassure our people that we mean well for them, especially now that peace has returned to Rivers State. By the grace of God, do your work well. Help us succeed in this assignment that God has given to us,” the Governor added.