Reps, Commission agree on need to review revenue sharing formula

The House of Representatives and the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) have agreed that the nearly 30 years old formula for sharing of revenue among the federating units of Nigeria and the various arms of government deserves to be reviewed to conform with the present realities.

Speaker of the House, Femi Gbajabiamila, and Chairman of the RMAFC, Engr. Elias Mbam, concurred on the need to review the revenue sharing formula, when the latter paid the Speaker and the leadership of the House a courtesy visit on Tuesday, at the National Assembly complex.

Gbajabiamila advised the Commission to carry all the stakeholders along, in the process of the review, so that the final report will not be faulted.

“I’m glad you’re here. Your Commission is one of the unsung heroes. You’re one of the 14 institutions established by the constitution, while all others were established by other laws.

“It’s almost 30 years that the last review was done. It’s such a long time. A lot has changed from 1992 to date.

“I charge you to do your review, not based on any sentiment. You should consult widely so that your report won’t be faulted. I’m glad you said you’re conducting public hearings. It’s good to do that, to seek people’s opinions.

“You should work based on the principles of justice, equity and fairness,” Gbajabiamila said, adding that Nigeria is a peculiar country, hence the need to do a thorough and diligent review.

He assured Mbam that the House would support the commission in whatever way possible, noting that the Commission’s management was at the right place to seek support.

READ: REVEALED: How Italian energy giant ENEL saved Nigeria LNG from collapse

On the issue of amendment of the RMAFC Act, Gbajabiamila asked the agency to provide specific areas that needed to be amended, especially on the issue of the Petroleum Industry Act as cited by Engr. Mbam.

“In terms of autonomy, I need to know if you don’t enjoy autonomy and how you’re not autonomous. The House is here to partner with you. We must work together. We must give you the enabling environment to operate effectively.”

Earlier, Engr Mbam informed the House leadership that the visit was to seek the support, advice and guidance of the House on the planned review of revenue allocation that the Commission was to embark on.

He said since the last review in 1992, things have changed and that there was the need to review the revenue allocation to accommodate those changes.

He said: “We now feel strongly that the review has become necessary. A lot of things have changed since 1992.

“There are concerns now that were not there before. So, there is the need to review the allocation to make sure that what every tier of government gets is in line with its current responsibilities.”

As part of the plans for the review, Engr Mbam said the Commission has embarked on wide consultations across the country including visiting past presidents, the Nigerian Governors’ Forum, the judiciary, Association of Local Governments of Nigeria (ALGON) as well as engagements with the media, CSOs, among others.

He said the Commission has commenced sensitisation in different states and that it would hold public hearings with regard to the planned review, starting with the Southwest next week.

States, Local Governments to get more in new revenue sharing formula