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Buhari receives RMAFC report, says new revenue formula’ll depend on constitutional review



President Muhammadu Buhari on Thursday states that he would wait for the final outcome of the constitutional review process before delivering the report on the vertical revenue allocation formula revision to the National Assembly as a bill for legislation.

The President made the remark while receiving a report from the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), led by Engr. Elias Mbam, in Abuja.

This was contained in a statement signed by spokesperson Femi Adesina.

The president was quoted as saying, ‘‘Ordinarily, I would have gone ahead to table this report before the National Assembly as a Bill for enactment.

‘‘However, since the review of the vertical revenue allocation formula is a function of the roles and responsibilities of the different tiers of government, I will await the final outcome of the constitutional review process, especially as some of the proposed amendments would have a bearing on the recommendations contained herein”.

President Buhari listed some of the recommendations in the report as follows: ‘‘Establishing local government as a tier of government and the associated abrogation of the state/local government account; moving airports; fingerprints, identification and criminal records from the exclusive legislative list to the concurrent legislative list, empowering the RMAFC to enforce compliance with remittance of accruals into and disbursement of revenue from the Federation Account as well as streamlining the procedure for reviewing the revenue allocation formula.’’

While the National Assembly finalises its efforts, the President informed members of the Commission that the Federal Government will immediately subject the report to its own review and approval processes.

This technique, rather than issuing an Executive Modification order, as was done in 1992, is more in keeping with entrenching our democratic ideals, according to the President.

He praised the RMAFC for its meticulous work and pledged his everlasting dedication and assistance in carrying out their constitutional tasks.

READ ALSO: Buhari writes Reps over proposed borrowing to finance 2022 budget

The President also commended Nigerians, particularly state and local governments, for contributing to the report’s development through the extensive stakeholder engagement processes.

‘‘I am aware that the present revenue allocation formula has not been reviewed since the last exercise carried out in 1992.

‘‘Considering the changing dynamics of our political-economy, such as Privatisation, Deregulation, funding arrangement of Primary Education, Primary Health Care and the growing clamour for decentralisation among others; it is necessary that we take another look at our Revenue Sharing Formula, especially the vertical aspects that relate to the tiers of government.

‘‘I want to let you all know that I have keenly followed most of the discussions held in the geopolitical consultative process and one thing that struck me clearly was the agreement that a review of our vertical revenue formula cannot and should not be an emotional or sentimental discussion and it cannot be done arbitrarily.

‘‘All over the world, revenue and resource allocation have always been a function of the level of responsibilities attached to the different components or tiers of government.

‘‘I am, therefore, happy to note that the discussions were held along these lines and rested squarely on roles and responsibilities as spelt out in the 1999 Constitution (as amended),” Buhari stated.

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