States may get more as Nigerian govt considers new revenue sharing formula

The Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Elias Mbam, has disclosed plans by the Nigerian government to review the revenue sharing formula for Federal, States and Local Governments due to current economic realities.

He made this known on Tuesday in Abuja while speaking to newsmen shortly after an award ceremony.

According to the current revenue allocation formula, the Federal government gets 52.68 per cent, State, 26.72 per cent and Local government 20.60 per cent.

Also, 13 per cent of oil and gas federally collected revenue is returned to the oil-producing states as derivation revenue to compensate for ecological disasters arising from oil production.

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He noted that a committee would be set up in the coming weeks to execute this task.

Mbam said the commission would also push for the diversification of the nation’s revenue for a more sustainable growth and economic development.

“My agenda is to expand the sources of revenue for the federation. I will like to expand the cake that we are sharing so that people will get reasonable quantity.

“I intend to do this through diversification in areas outside oil and gas, and that includes solid minerals, agriculture and manufacturing.

So, we will encourage states and let them know what is available outside oil and gas so they can develop those aspects of the economy to their own benefit,’’ he said.

Babatunde Alao …

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