THE Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) have requested governors to submit a proposal as the agency begins a review of the revenue allocation formula.
Chairman of the agency Elias Mbam said the governors are yet to make any plan available despite being in the forefront of those seeking a review of the extant arrangement.
Mbam said: “No governor has approached me for that (review of formula) either orally or in writing.”
He added: “Governors should convey their interest to the commission because they don’t have the power to review the formula.”
One of the governors said on Monday that the position of the states had not changed since a proposal was presented to the Goodluck Jonathan Administration in 2012.
The governor said: “RMAFC does not need to wait for any presentation or document from us again to review the nation’s revenue allocation because since 2012, we have made our position known to the commission.
“We raised a six-man committee, headed by ex-Governor Babatunde Fashola which recommended that states should get 42 per cent, the Federal Government 35 per cent; and Local Governments 23 per cent. That remains the position of the governors.”
He added: “Other members of the committee were ex-governors Murtala Nyako; Sullivan Chime; Babangida Aliyu; Rotimi Amaechi; and Aliyu Wamakko.
“RMAFC should continue to work with what we have presented to it and it can serve as a template for all stakeholders.”
The governor explained further: “We have also set up a committee to monitor RMAFC’s action and further look at our demand when necessary as events unfold.
“We are aware that the ultimate decision might not reside with RMAFC, it will be the lot of the Federal Government, the states and local governments.
“Whatever is done by RMAFC, a lot of political consensus is required for any revenue allocation formula to be acceptable.”
When asked how much pressure the states were putting on the commission to come up with a revenue formula that would give them bigger allocation from the federation account, the RMAFC chairman said: “The commission is not responsible to the governors. It’s an independent institution and the members are made up of men and women of proven integrity so they cannot be pressured or influenced to that.”
Talks on a sustainable revenue sharing formula from the federation account to the three tiers of government was stalled five years ago.
But, last month, the commission reopened the issue.
The subsisting formula of 52.68 per cent for Federal Government, 26.72 per cent for states and 20.60 per cent for local governments came into existence in 2000 through a fiscal circular during the administration of former President Olusegun Obasanjo.
Apart from the votes from the FAAC, 13 per cent of the oil and gas federally collected revenue is shared among the oil and gas producing states and communities as derivation revenue.
Attempts were made in 2014 under the administration of the Goodluck Jonathan to come up with what the RMAFC called “a consensus and more equitable revenue formula.” Specifically, the RMAFC carried out extensive consultations in 2013 and came up with a new revenue formula in December 2014.
However, the Jonathan administration could not transmit the revenue formula which Mbam described as “inconclusive” to the National Assembly.
It was alleged that many powerful individuals were unhappy that the revenue formula designed under Jonathan favoured the states.
Mbam said a review is necessary because of “prevailing economic realities”.
The commission, he said, will “pursue the diversification of the nation’s revenue for a more sustainable growth and economic development.”
He added: “My agenda is to expand the sources of revenue for the federation. I will like to expand the cake that we are sharing so that people will get reasonable quantity. I intend to do this through diversification in areas outside oil and gas, and that includes solid minerals, agriculture and manufacturing.
“The RMAFC will encourage states and let them know what is available outside oil and gas so they can develop this aspect of the economy to their own benefit.”
Mbam is advocating financial autonomy for the local government areas to enable the bulk of Nigerians at the grassroots get the best out of democracy.
He, however, noted that funding could delay the new revenue formula.
Mbam cautioned that delay in funding can also delay the speed with which the revenue formula review would be completed. According to him, “they are just starting. I don’t want to preempt what they will actually come out with because there are so many other variables that will also be at play and which will determine when it will end.
“Take for instance funding; there are some aspects that require funds and there are no funds. Delay in funding can also lead to delay in the timely completion of the new revenue formula. I don’t want to give you a date now; let’s progress a little more before I give you a date but we are looking at as early as possible.”
