Revenue formula is unfavorable to second, third tiers of govts -Ishaku

EMMANUEL AWARI, Jalingo

Governor Darius Ishaku of Taraba State has disclosed that the State was surcharged in terms of solid minerals exploration and development.

The Governor, represented by his Deputy, Engineer Haruna Manu, made the disclosure while declaring open a two-day review meeting on revenue allocation formula organized by the Ministry of Budget and Planning in conjunction with the Revenue Mobilization Allocation and Fiscal Commission, Abuja.

“I wish to state here that the revenue sharing Formula is unfavourable to the Second and Third tiers of governments since it cannot keep up with our rising obligations, thereby the need for immediate review of the formula.

“For an effective review of the allocation formula, there is the need for quality-assured data which will be the basis for the exercise. To do this, my government is transforming the Statistics Department of the Ministry of Budget and Planning into a full-fledged Bureau for Statistics.

He stressed that his administration was committed to using its limited resources for the benefit of the people and encourage Tarabans, particularly stakeholders to participate in the review by submitting position papers to improve fiscal, efficiency at the sub-national level.

“The transformation in the country has increasingly shifted to the burdens of governance in the face of insufficient and dwindling revenue allocation from the Federation Account.

“This has over the years affected the effective performance of the state and local government’s administrations in Nigeria.

“The current Federation Account allocation formula which gives the  36 States of the Federation a combined 26.72 per cent, the 774 Local Government Areas 20.60 per cent and Federal Government the largest share of 52.58 per cent need to be overhauled immediately to reflect the current situation in the country.

In his remarks, Chairman, Revenue Mobilization Allocation and Fiscal Commission Abuja, Engineer Elias Nbam,  represented by a Commissioner in the Commission, Ahmed Yusuf, said that Paragraph 32(b) of part 1 of the Third Schedule of the 1999 Constitution of the Federal Republic of Nigeria ( as amended) empowers the Commission to review from time to time the revenue allocation formula and principles in operation to ensure conformity with changing realities provided that any revenue formula which had been accepted by an act of National Assembly shall remain in force for a period of not less than five years from the date of commencement of the Act.

“The Commission is inviting writing memoranda from the Federal, State and Local Governments and the FCT local Councils as well as the National and State Assemblies, Judiciary, Civil Societies, the Academia, Organised Private Sectors, Labour Unions and the Public on the proposed review.

He disclosed that the last review was done in 1992, therefore the need to be reviewed.

In his submission, the Speaker, Taraba State House of Assembly, Professor Albasu Kunini, is of the opinion that the 52 per cent being enjoyed by the Federal Government should be reduced to 20 per cent while oil states 10 per cent, adding that most of the oil states have been taking care of by Commission such as Niger Delta Commission, NDC, oil companies among others.

“States should be given lion share of 30 per cent while LGA”s 20 per cent so as to tackle Insecurity in the state. For example in my Local government, (Lau), no Road is tarred and we say we are in the third tier of government, how?  Federal Government should encourage States to begin to think on states natural resources”, he said.

He said that the review of the formula has been long overdue, thereby the need to review to accommodate the present population, insecurity facing the country among others.

Similarly, in their submission, the Chairman, Association of Local governments in Nigeria ALGON, Taraba State Chapter led by its Chairman, Hon. Bala Bako, decried the low Revenue allocated to the local governments and request that it should be raised from 20.6 per cent to 35.5 per cent.

He pointed out that the submission of the Association is the voice of LGA, Chairmen in Nigeria, and urge the Commission to consider its request for the betterment of the country.

Also in its submission, the Council of Traditional Rulers said that the current situations faced by Local governments and Traditional Rulers make it possible for the review of the formula.

“The allocation to LGA’s is grossly inadequate considering its numerous activities, such as Polio, Cholera outbreaks, maintenance of Peace, Teachers salaries, Maintaining of Palaces, retirement benefits to LGA’s Staff and Traditional Rulers.

“We are of the opinion that the Revenue sharing Formula should be like this, Federal Government 44.68 per cent, States 28.72 percent, LGA’s 26.60 percent while that of Traditional Rulers should be above 7 percent.

Speaking with Newsmen shortly after the occasion, the Chairman, Jalingo Local government, Nasir Bobboji said that the Council is carrying out some of its activities with Internationally Generated Revenue, IGR, such as Medical Care, Renovations of Buildings just to mention but few.

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