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New FAAC sharing formula will see Nigerian govt share drop by 3.33%

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New FAAC sharing formula will see Nigerian govt share drop by 3.33%

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), has submitted the new revenue formula.

The Formula was submitted to President Muhammadu Buhari on Thursday.

The new formula proposes 45.17 percent for the Federal Government, 29.79 percent for states, and 21.04 percent for local governments.

The extant revenue formula indicates a vertical revenue allocation formula of 52.68 percent for the Federal Government; 26.72 percent for states; 20.60 percent for the local governments, and 13 percent for derivation.

The proposed new formula, therefore, translates to a 3.33 percent reduction for the Federal Government, an increase of 3.07 percent for states, as well as an increase of .44 percent for the local governments.

President Buhari, while receiving the revenue report from Elias Mbam, chairman of the RMAFC, said he would await the final outcome of the constitutional review process before presenting the proposed revenue formula to the National Assembly as a bill for enactment.

Read also: FAAC distributes N574.7bn to Nigerian govt, states, LGs

Under Special Funds, the report recommended 1.0 percent for ecology, 0.5 percent for stabilisation, 1.3 percent for development of natural resources and 1.2 per cent for the Federal Capital Territory (FCT).

With regards to Special Funds, the report proposed an increase of .2 percent for the Federal Capital Territory (FCT) and a decrease of .38 per cent for development of natural resources.

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