Customise Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorised as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyse the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customised advertisements based on the pages you visited previously and to analyse the effectiveness of the ad campaigns.

No cookies to display.

Connect with us

Hi, what are you looking for?

Economy

Restructuring: Gov Bello proposes 39% to FG, 61% to States, LGs as revenue formula

Yahaya Bello, governor of Kogi has called for the review of the revenue-sharing formula with the federal government’s share dropping from 52.68 per cent to 39 per cent.

Advertisements
PROMAD is Hiring a Graphics Officer (Website)

NEWS AGENCY OF NIGERIA

Yahaya Bello, governor of Kogi has called for the review of the revenue-sharing formula with the federal government’s share dropping from 52.68 per cent to 39 per cent.

He also proposed that states’ allocation be reviewed upwards from 26.72 per cent to 35 per cent while that of the Local Government Areas be raised from 20.6 per cent to 26.72 per cent.

Advertisements

The governor made the proposals on Thursday while delivering a welcome address at the opening of the North Central Zonal Public Hearing on Review of the Revenue Allocation Formula (RAF) by the Revenue Mobilization, Allocation, and Fiscal Commission (RMAFC).

He said that the review of the formula is now long overdue, stressing that the burden on states is not commiserate with the allocation due to them.

“I urge this assemblage to look critically at the revenue allocation formula currently in use in Nigeria today and isolate the immediate and remote reasons why it has failed to achieve the desired developmental aspirations.

“To help us chart a new order for current and future development, I suggest a revenue-sharing formula of 39 per cent, 35 per cent and 26 per cent for the federal, state, and local governments respectively.

“I believe this new formula is more in keeping with the financial burdens on the various tiers and will improve the nexus between revenue allocation and economic growth in Nigeria.

“The federal government must now consider relinquishing portions of its share to the other 2 tiers.

“This is the time to make room for the extra, back-breaking, burden which states bear in catering for its over-bloated workforces, particularly at the third tier, which they cannot retrench,” he said.

Buttressing how unfair the formula is in view of the existential realities between the three tiers of governments, he said that the states, especially at the local level, had too many workforces.

Exemplifying with his state, he said that despite a rigorous staff verification exercise to remove ghost workers in his state, LGAs still had 43,788 workers with a monthly salary obligation of N3.8 billion.

“This is quite different from the N3.206bn I need to settle salaries and remunerations every month at the state level for a workforce which also numbers into tens of thousands.

“Note that Kogi’s monthly income – allocations from FAAC and JAAC plus our internally generated revenue which this Administration has painstakingly grown about 300 per cent, still hovers around N7 billion.

“The situation is dire and it becomes worse when you add our many other governance responsibilities such as meeting the needs of our people in all sectors – education, health, infrastructure and utilities.

“Clearly, the case for an enhanced revenue share for the 2nd and 3rd tier of governance has never been stronger. I strongly urge it this is the right thing to do and this is the time to do it,” he said.

Gov. Bello added that it is crucial to actualise the progressive agenda of the RMAFC that some measure of equity is implemented in the sharing.

He called on the commission to look at the facts which he had raised and activate principles of fairness and then apply them to the Revenue Allocation Formula.

NAN

Advertisements
PROMAD is Hiring a Research and Analytics Officer
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Our Facebook Page

You May Also Like

Elections

The Independent National Electoral Commission (INEC) says the commission is willing to allow eligible voters to cast their votes in future elections without voter...

Technology

Dr Bosun Tijani, Minister of Communications, Innovation and Digital Economy, has met with stakeholders in Lagos to discuss the country’s National Artificial Intelligence Strategy...

Economy

Nigeria’s inflation rate climbed to 24.23 percent in March, according to the National Bureau of Statistics (NBS).

Business

The federal government has secured a fresh $1.08 billion from the World Bank to boost education, support households and nutrition programmes, and strengthen Nigeria's...

Economy

Nigeria's headline inflation rate increased to 34.60% in November 2024, according to the National Bureau of Statistics (NBS). 

Business

Shell PLC has announced a new investment in Nigeria’s Bonga North, a deep-water project off the coast of the country.