27 Sep REVENUE ALLOCATION FORMULA: RMAFC Adopts Draft Report, Ready for Submission
The long awaited draft report on the proposed new Revenue allocation formula currently being reviewed by the Revenue Mobilization Allocation and Fiscal Commission has been unanimously adopted by Members of the Commission and is now ready for submission to Mr. President in accordance with the Constitutional provisions.
2. A statement signed by Amb. Zubairu Dada, Chairman Public Affairs and Communication Committee (PAAC) of the Commission revealed that Members of the Commission adopted the draft report following a two week retreat at Tinapa, Cross River State where all the submissions, relevant documents and inputs from Stakeholders were analyzed and considered.
3. It would be recalled that from 23rd November to 7th December, 2013, Members of the Commission converged on Tinapa Business Resort and Hotel, Calabar, Cross River State Capital where they held a two-week retreat to brainstorm on the Revenue Allocation Formula Draft Report. Furthermore, the Commission had previously embarked on tour of Federations, sensitization visits to states, Consultations, Public Hearings and extensive study of all relevant literature and fiscal matters relating to revenue allocation in an effort to make the final report credible, authentic and generally acceptable to Nigerians.
4. Dada explains that the last time the revenue allocation formula was generally reviewed was in 1992. He further stressed that the current revenue allocation formula arose from the Modification Order issued by former President Olusegun Obasanjo in May 2002, amended in July 2002, and January 2004 respectively. “The Order which emanated from the Supreme Court Judgment of April 5, 2002 was to bring the relevant sections of the subsisting Allocation of Revenue(Federation Account, etc) Act, in conformity with the provisions of the 1999 Constitution (As Amended) of the Federal Republic of Nigeria. It was therefore necessary to review the present revenue allocation formula to reflect changing realities and the yearnings and aspirations of Nigerians”.
5. He added that the need for distributive justice, fairness and equity in the allocation of resources as enshrined in the 1999 Constitution guided the review exercise. According to him, the basic principles taken into cognizance include the indivisibility of the country, public opinion and weighted constitutional responsibilities and functions of the three levels of government.
6. The PAAC Chairman also commended Members, Management and Staff of the Commission, the West African Institute for Financial and Economic Management (WAIFEM) (the Lead Consultant of the review exercise) and indeed all Stakeholders who contributed to the process of the review for their painstaking efforts and sacrifices.
5. According to Dada the draft report was a product of careful analysis and examination of the diverse views of the Nigerian people comprising the Mass media; the Academia; NGOs; CSOs; Women and Youths Groups; Consultations with Leaders and Elder statesmen; stakeholders and visitations of other Federations.
6. From this development, the Report as an advice on a new revenue allocation formula according to him shall be subsequently submitted to Mr. President.