Revenue Formula: Gombe sues for reverse in states allocation
…..seeks FG’s 52.8 percent for states
Gombe State Governor, Muhammadu Yahaya has sued for a reverse in the revenue formula from existing 52.8 percent earned by Federal Government.
Recall that 36 states are left with 26.72 percent, while 774 Local Government Areas are made to survive on 20.60 percent.
The governor, who is also an accountant made this plea on Tuesday, in his address during Nationwide sensitization on the review of existing revenue allocation formula by Revenue Mobilization, Allocation and Fiscal Commission (RMAFC), held at the banquet hall Gombe Government House.
He lamented why states despite the enormous responsibilities of shouldering the needs of the people would be left with 26.72 percent, adding that the federal government has lesser task.
According to Yahaya, “The stakeholders in Gombe state especially those from the grassroot, appreciate the development impact of the federal government across the states, but are also of the view that the vertical Revenue allocation approach be reversed to give the states and local governments more Revenue, believing that would fast track development of the rural areas.
“I understand that this first phase of review will focus on the vertical allocation. That is, how revenue is shared among the three tiers of government (FG, States and LGAs). In the existing formula, all the 36 states only collect a paltry of 26.72% while our 774 LGAs collect 20.60% of all the accruals from the federation account, leaving the Federal Government with a lion share of 52.8%.”
While commenting on the need for a change in the allocation formula, Yahaya stressed the last time such review was successfully conducted was in 1992, some 29 years ago.
“Since then, a lot of changes have taken place across our social, political and economic spheres. Thus, necessitating a review in order to ensure a fairer and equitable allocation formula that is compatible with our current realities.
“Over the past decades, the roles of State Governments have expanded while our revenue allocation has remained the same. States are forced to deal with emerging challenges like insecurity, environmental degradation, decaying infrastructure, inadequate funding for primary healthcare and basic education. As the roles of States keep expanding, there’s the need for a proper review of the allocation formula to ensure states get the required resources to be able to deliver on new and existing responsibilities,”Yahaya added.
Also speaking, Chairman of RMAFC, Elias Mbam, who was represented by a National Commissioner Usman Kukandaka said the objective of the sensitization was to enlighten major stakeholders.
“The Executive, Legislature, Judiciary, organised labour, civil society, particularly state and local government on the need to participate and make relevant contribution in the process of the review in order to assist the commission to come up with just, fair and equitable, acceptable, revenue formula for the country,” he said.
