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Revenue allocation review not meant to change Nigeria’s fiscal structure – FG

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The Nigerian Government has said that its recent move to begin a revenue allocation review between the three tiers of government is not intended to change Nigeria’s fiscal structure through restructuring.

This was disclosed by the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Engr. Elias Mbam on Tuesday, in Lagos on the second day of a two-day Southwest Zonal public hearing on the review of the vertical revenue allocation formula.

The FG through the RMAFC is currently on a public hearing exercise for the review of revenue allocation, starting with representatives of the south west states.

What RMAFC said

“Whether we are devolving power or going into complete system of federalism or we are restructuring, is not the concern of this review.

“The review of the mobilisation and revenue allocation is a product of law and an Act provided by the 1999 Constitution as amended,’’ he said.

The RMAFC boss added that legally, all issues related to which taxes can be collated would be addressed by the National Assembly, adding that if the Federal Government is confirmed to have a high responsibility, it will get an equivalent of that responsibility as allocation.

“If it is the local government that has more responsibility, it will be done the same way. Our position is that the more responsibility of a tier, the more money it gets.’’

Meanwhile at the event, the Lagos State Commissioner for Budget Planning, Mr Samuel Egube, said Nigeria needed to prepare itself for the African Continental Free Trade Area (AfCTA) through the revenue mobilisation allocation.

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“The AfCTA would open up the Nigerian market for competition across Africa and all states of Nigeria would have to compete with countries in the continent,” he said.

“If we do not focus on the people and where the strengths are, we will miss it because the people that generate these resources are actually the resources.

“Sometimes, when we talk of revenue allocation, we talk about natural resources, but our natural resources will fail us if the people are not energised,’’ he added.

What you should know

Nairametrics reported earlier that the FG through the Revenue Mobilisation Allocation And Fiscal Commission (RMAFC) stated that the current review process is needed to assure fairness and also to ensure conformity with changing realities, provided that the revenue formula has been accepted by an Act of the National Assembly.

The Lagos State Governor, Babajide Sanwo-Olu called for a 42% revenue share model to states from the Federation Account.

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Akinola
Akinola
Akinola Olusegun is a blogger and publisher of this blog, money247.com.ng. You can also check out his other blogs : segtv.com.ng (videos & news), letgoonline.com.ng (e-commerce), letgoonline.com.ng/blog (news) among others. Follow him via any or all of his social media pages to get fresh posts update.
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