Public Hearing On New Revenue Formula  Begins Today

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CBN

 

Olusola Bello

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has disclosed  that a public hearing for a new revenue allocation formula will start today as Southwest states converge on Lagos.

 

This is coming despite the ongoing face-off over a collection of revenue, especially VAT and stamp duty. The current arrangement gives the Federal Government 52.68 per cent of revenue generated in the country, states get 26.72 per cent, while the 774 Local Governments get 20.60 per cent.

 

 

The public hearing in Southwest would officially kick off the nationwide consultations expected to lead to a new revenue sharing formula for the country. The states expected to participate are Lagos, Ekiti, Oyo, Ogun, Ondo and Osun.

 

The public hearing for the South-South zone is expected to hold in Rivers State from October 7 to October 8 with participants expected from Rivers, Akwa Ibom, Bayelsa, Cross River, Delta and Edo states.

 

 

For the Southeast states, it will hold in Imo from October 11 to 12.

 

Under the current sharing arrangement, according to the Commission, the current review will focus only on the vertical allocation, which covers allocation to the Federal, States and Local Governments and does not imply a reduction in the cost of governance.

 

RMAFC added that the review is in pursuant of the constitutional mandate that empowers it to “review from time to time, the revenue allocation formula and principles in operation to ensure conformity with changing realities.”

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