October 16, 2021

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Review of revenue sharing formula’ll address agitation by states, LGs –RMAFC

By Lukman Olabiyi 

Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has given assurance that the proposed review of allocation sharing formula will address agitations of  state and local governments. 

The Federal Commissioner, representing Lagos State in RMAFC, Dr. Adekunle Wright and Director, Inland Revenue Department,  RMAFC, Udodirim Okongwu, gave the assurance at the Pre South-West stakeholders’ sensitisation meeting on 2021 revenue allocation formula review, held in Lagos. 

Wright said in view of the changing situation and demands, the Commission has been prompted to host stakeholders across the federation towards reviewing the revenue formula in the country.

According to him, the Commission was desirous to “within the shortest possible time” come up with a feasible review for a workable formula that aligns with current realities.

Explaining the expectations from the stakeholders in respect of the proposed review formula, Okongwu said the Commission looks towards arriving at a fair, just and equitable revenue formula.

She mentioned that the biggest challenge was that there is an absence of explicit vertical sharing factors in the constitution, against the horizontal factors, which according to her, made it problematic to come with fair, just and equitable formula.

In his keynote address at the meeting, Lagos State Commissioner for Finance, Dr. Rabiu Olowo, noted that the effort was a proactive move to gather submissions towards the upcoming Southwest regional stakeholders’ public hearing on the review of the subsisting revenue allocation formula.

He argued that the revenue allocation formula inherited from the military was skewed largely towards the Federal Government which, according to him, is inconsistent with present realities.

The post Review of revenue sharing formula’ll address agitation by states, LGs –RMAFC appeared first on The Sun Nigeria.

Source: news