The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has announced plans to commence the process for a new revenue sharing formula for the federal, state, and local governments.
RMAFC Chairman, Elias Mba, made the announcement on Tuesday at a press briefing in Abuja.
“I want to reiterate that the commission is highly determined to produce, within the shortest possible time, a new revenue sharing formula that will be fair, just, and equitable to the three tiers of government,” he told reporters.
Under the new regime, according to Mba, revenue for the federal, state, and local governments as proposed by the commission is pegged at 52.6 per cent, 26.7 per cent, and 20.6 per cent respectively.
He believes the new sharing formula will help address issues of poor infrastructure, ecological challenges, and the series of agitations for a review.
The new revenue sharing formula is expected to be implemented by the end of 2021, 28 years after the commission conducted a review.
“The commission has programmed to complete this review process by the end of 2021. I am glad to observe that the response so far from Nigerians is very impressive,” Mba said.
“On this note, I call on all Nigerians to be part of the current exercise by making relevant inputs that will enrich the exercise and give their unalloyed supported to the commission to achieve its desired goals.”
Members of the RMAFC committee are made up of representatives from all 36 states and the Federal Capital Territory (FCT), as well as Mba who is the chairman.
As of August 8, all states and the FCT have a representative each in the committee, except Bauchi, Enugu, Imo, and Kogi.
Listed in the 1999 Constitution as one of the 14 Federal Executive Bodies, RMAFC was established to handle revenue allocation and fiscal matters on a continuous basis.