RMFAC to submit new revenue allocation formula to Jonathan soon

The Revenue Mobilisation, Allocation and Fiscal Commission says the new revenue allocation formula will soon be submitted to President Goodluck Jonathan.
This was contained in the latest edition of the commission’s quarterly publication: “Fiscal Monitor,” made available to the News Agency of Nigeria.
It said that Jonathan would forward the formula to the National Assembly for consideration.
The publication said that the purpose of the review was to ensure that revenue accruing to any tier of government was directly proportional its responsibilities.
According to the publication, the current revenue allocation formula was reviewed in 1992, necessitating another review, to reflect the changing realities and the yearnings and aspiration of Nigerians.
It said: “The review is long overdue; every formula enforced by an Act of the Constitution is expected to be reviewed every five years.”
It noted that the need for distributive justice, fairness and equity in the allocation of resources as enshrined in the 1999 Constitution guided the review exercise.
The publication added: “The long awaited draft report on the proposed new revenue allocation formula recently reviewed by the commission has been unanimously adopted by members of the commission.
“It is now ready for submission to Mr President in accordance with the constitutional provision.
“The 1999 constitution empowers the commission to review from time to time the revenue allocation formula and principles in operation, to ensure conformity with the changing realities.
“It provides that any formula which has been accepted by an Act of the National Assembly shall remain in force for a period of not less than five years from the commencement date.
“The commission had previously embarked on visits to states and local governments in the country for sensitisation, consultations, and public hearings.
“RMAFC also embarked on extensive study of all relevant literature in an effort to make the fiscal report credible, authentic and generally acceptable to Nigerians.”
The publication said the aim of the exercise was not necessarily to reduce or increase the revenue allocation of any tier.
“RMAFC position is that revenue accruing to any tier of government should be directly proportional to its responsibilities,” it added.