The Chairman of the Revenue? Mobilisation, Allocation and Fiscal Commission (RAFMC), Mr. Elias Mbam, has given assurance that a new revenue allocation formula would be ready by the first quarter of 2012.
Mbam, who was fielding questions from newsmen in Abakaliki yesterday, said: “I promise the nation that the new revenue formula will be ready for presentation to Mr. President in the first quarter of 2012”.?????? ?
He said that the commission was conscious of the sensitivity of the matter to the citizenry and was therefore, carrying out detailed consultations, studies and researches in fiscal matters.
“We are not reviewing the revenue allocation formula simply to allocate more money to states or local governments.
“We don’t just allocate money, we look at the responsibilities and apportion what we feel will be reasonable for the discharge of those responsibilities, and that will determine what goes to each tier of government.
“The committee set up to review the allocation is working assiduously to ensure that a comprehensive and detailed consultations, studies and researches are made. This is what is delaying the new formula”. Mbam explained that review of the revenue formula was a constitutional issue, adding that the commission was empowered to review the revenue formula from time to time in conformity with changing realities.
“It is provided in the constitution that the commission should review from time to time the revenue formula and principles of operations to conform to changing realities.
”That includes the parameter to be used. It talked about 13 per cent derivation, population density, landmass and equality of states.
“We are also going to carry out similar studies in federations outside Nigeria who are practicing the same system of government with us and see why their own is succeeding and why ours is having problems”.
On the issue of state and local governments’ joint account, Mbam said that the system should be abolished and that local government funds be paid directly into their accounts.
“The commission is of the view that the joint state and local government account should be abolished. The local governments should be allocated fund directly to their accounts in other to reduce or forestall any possible abuse and leakages.
“Indeed time has come for the country to have a new revenue allocation formula backed by legislation” .
The chairman disclosed that the commission was preparing a road map, with a view to making it a research centre for fiscal matters, in addition to its constitutional role of allocation of money to all tiers of government. (NAN)