Governor Nyesom Wike of Rivers State has tasked the Revenue Mobilisation Allocation and Fiscal Commission, (RMAFC), to reduce revenue accruable to the Federal Government from the Federation Account to 40 percent.
Governor Wike also demanded an increase in the funds allocated to States and Local Government Councils to 40 and 20 percent respectively.
He said the current revenue sharing formula which allows the Federal Government to take 52.68 percent while the States and Local Government Areas take 26.72 percent and 20.60 percent respectively, was unacceptable.
Governor Wike made the call when members of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) led by its Chairman, Elisa N. Mbam, visited him at the Government House, Port -Harcourt, Wednesday.
He said that despite the changes that the country had been through in the past 29 years, it is regrettable that it has continued to use the 1992 revenue formular prescribed by the military.
He also faulted the use of 1992 population figure, public school enrolment and public hospital bed spaces, land mass as formula for allocation of revenue.
He argued that a more equitable formula should also take into cognisance current population figures as well enrolment in private schools and number of bed spaces in private hospitals.
His words:”Using the same formula of 1992 as a basis for revenue allocation in this country is so unfortunate. And to worsen the situation under a democratic dispensation, since 1999 till now, our country has not reviewed the revenue allocation formula.”
“You people should reduce the percentage of the Federal Government. Give them 40 percent.”
“Give the States 40 percent, give Local Government 20 percent. In that way, most of the responsibilities that belong to the Federal Government will now be taken away and given to the States.”
“We cannot talk about operating a Federal System without having a fiscal federalism. It is practically impossible. Let’s cancel that word federalism, we are operating a unitary system. But you cannot be saying we are operating a Federal System, at the same time operating a centralised system.”
Reacting Chairman of RMAFC, Elisa N. Mbam submitted that one the core mandates of the Commission is to review from time to time the revenue allocation formular to conform with changing realities and exigencies.
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