The federal government has said a new reviewed revenue sharing formula that would entrench equitable sharing process will be ready by December, over 28 years after the formula was reviewed.
The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Engr. Elias Mbam who stated this during a press briefing in Abuja at the weekend, said the last general review was done in 1992.
“I want to reiterate that the RMAFC is highly determined to produce within the shortest time possible, a new revenue sharing formula that will be fair, just and equitable to the three tiers of government.
“The Commission is determined to complete its review process by the end of 2021. I am glad to observe that the response so far from Nigerians is very impressive and demonstrates the importance the general public attaches to the exercise,” said Mbam.
According to him the review is focused on the vertical allocation of the revenue allocation formula for the Federal, States and Local Governments.
Engr. Mbam said from 1992, the political structure changed with the creation of six more States in 1996, which brought the number of states to 36 and LGAs increased from 589 to 774, among other changes.
“In view of the above, the Commission has commenced the review of the current vertical revenue sharing arrangement with a view to producing a fair, just, and equitable revenue sharing formula that will be acceptable to the majority of Nigerians,” he noted.
The RMAFC boss further said the current sharing arrangement is that FG has 52.68 percent of the total revenue, States get 26.72% and LGs get 20.60% which he said efforts were made in the past to review this with the most recent attempt being in 2014.
He noted that at the period all necessary processes required of the Commission were concluded except for the final process, noting that the Commission was already sensitising people across States and LGs in addition to all other processes for the review.