The Anambra state Governor, Willie Obiano, has proposed a revenue sharing formular of 50, 30 , and 20 percent for state,local and federal governments, respectively.
The governor stated this on Wednesday while declaring open the sensitisation exercise for a new revenue allocation formula for the country held in Awka, the state capital.
Represented by his deputy, Dr Nkem Okeke, the governor said states should get the Lion’s share of allocation because they shouldered the highest degree responsibilities among the three- tiers of government
He said, “issues of security, health-care, education and of infrastructure in the states require enormous resources and funding.
“The existing revenue formula of 26 percent collectable by states is grossly inadequate”
A Federal Commissioner, in the Revenue Mobilisation Allocation and Fiscal Commission, Chima Okafor, said the team was given a specific constitutional mandate to review from time to time the revenue allocation formula and principles in operation to ensure conformity with changing realities, “provided that the revenue formula which had been accepted by an Act of the National Assembly shall remain in force for a period of not less than Five years from the date of commencement of the Act”.
“It is in compliance with that constitional provision and in view of the changing socio-economic and political dynamics of the nation that prompted the commission to commence full scale engagement of representatives of various stakeholders and the people nationwide in the process of fashioning a new revenue sharing formula for the country.
“Inputs from the people at the interactive exercise, will provide pathways for creating a workable template to assist the commission in its task of evolving and bequeating to the nation a fair, just and equitable new revenue sharing formular.”
Okafor said the commission was desirous of providing within the shortest possible time a generally acceptable revenue formular that would meet the expectations of the three tiers of government to the benefit of the citizens.
Stakeholders and groups, including traditional rulers, civil society organisations, the legislature and the judiciary who spoke at the event endorsed upward review of revenue accruable to states and LGAs
