RMFAC Set To Introduce New Revenue Sharing Formula For FG, States, LGs

RMFAC Set To Introduce New Revenue Sharing Formula For FG, States, LGs

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has made public its plans to begin the process for a new revenue-sharing formula for the federal, state, and local governments.

This was according to the RMAFC Chairman, Elias Mba, who made the disclosure on Tuesday at a press briefing in the Federal Capital Territory, Abuja.

“I want to reiterate that the commission is highly determined to produce, within the shortest possible time, a new revenue sharing formula that will be fair, just, and equitable to the three tiers of government,” he told reporters.

The new regime, according to Mba, will see the federal, state, and local governments respective revenues pegged at 52.6 percent, 26.7 percent, and 20.6 percent.

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The RMAFC boss is confident the new sharing arrangement will help tackle issues of poor infrastructure, ecological challenges, and the series of agitations for a review.

The new revenue sharing formula is expected to be implemented by the end of 2021, 28 years after the commission conducted a review.

“The commission has programmed to complete this review process by the end of 2021. I am glad to observe that the response so far from Nigerians is very impressive,” Mba said.

“On this note, I call on all Nigerians to be part of the current exercise by making relevant inputs that will enrich the exercise and give their unalloyed supported to the commission to achieve its desired goals.”

The RMAFC committee consists of representatives from all 36 states and the Federal Capital Territory (FCT), including Mba who serves as the chairman.

As of August 8, all states and the FCT have a representative each in the committee, except Bauchi, Enugu, Imo, and Kogi.

Listed in the 1999 Constitution as one of the 14 Federal Executive Bodies, RMAFC was established to handle revenue allocation and fiscal matters on a continuous basis.

About Author

Victor Okeh is a graduate of Economics from Lagos State University. He is versatile in reporting business and economy, politics and finance, and entrepreneurship articles. He can be reached via – [email protected]

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