Thursday, December 2, 2021



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Wike seeks upward review of revenue allocation to states

Governor Nyesom Ezenwo Wike of Rivers State is advocating for a reduction in the revenue accruable to the Federal Government from the Federation Account.

He recommended the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to cut the federal part from 52.68 percent to 40%, raise the state share from 26.72 percent to 40%, and reduce the local governments’ share from 20.60 percent to 20%.

Wike’s plan, which was made public by his media adviser Kelvin Ebiri, comes just two days after Lagos State Governor Babajide Sanwo-Olu launched a similar campaign.

The current revenue sharing model, as imposed by the military since 1992, has become unworkable, according to the governor.

Wike faulted the use of the 1992 population figure, public school enrolment and public hospital bed spaces, land mass as formula for allocation of revenue.

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He argued that a more equitable formula should also take into cognisance the prevailing population figure as well enrolment in private schools and number of bed spaces in private hospitals.

Wike said: “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.”

Justifying his call for a reduction in the federal share of national revenue, the governor said the Federal Government has abdicated its responsibility of providing security and basic infrastructure to the federating states.

“You people should reduce the percentage of the federal government. Give them 40 per cent. Give the states 40 per cent, give Local Government 20 per cent. In that way, most of the responsibilities that belong to the federal government will now be taken away and given to the states,” Wike said.

He noted the centralised federal system has made it impossible for states to look inwards and harness their potentials.

According to him, the country’s vast resources will continue to amount to nothing if the states are not allowed to use their resources to drive and determine their development.

He said: “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.”

The governor expressed reservation about the willingness of the federal government to implement the recommendations of the revenue mobilisation and fiscal commission, which is currently holding public hearing on new revenue sharing formula across the six geopolitical zones.

Mbam explained that his commission has as one its mandate to review from time to time the revenue allocation formula in line with changing realities.

The RAMFC boss explained that it has become necessary to review the current formula because the last review was done in 1992.

According to him, the data that will be collated from the states will help the commission to arrive at a fair formula.

“We believe that what we will get from states will help us to come up with a revenue formula that will be fair, just and equitable,” he said.


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4 COMMENTS

  1. Look at federal government, monkey dey work baboon come dey chop
    Some will be making it while some want to be spending all in the name shari’a.
    Shari’a forbids Haram and they want to be eating from Haram source

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