The current revenue sharing formula between the three tiers of government in Nigeria would be reviewed so as to allocate more funds to the states and local governments to address local concerns
This is part of the manifesto of the presidential candidate of the All Progressives Congress, Bola Tinubu,.
Mr Tinubu, in his 80-page manifesto document titled “Renewed Hope 2023 – Action Plan for a Better Nigeria” said too much powers and resources have been lodged at the federal level since the inception of this country hence the need to review the sharing formula.
He stated that the existing arrangement has been problematic because “state governments are closer to the people and must be more responsive to local needs and aspirations.”
Mr Tinubu said “his administration will embark on a review of the federation revenue allocation system to recalibrate the division of funds amongst the three tiers of Government: Federal, State and Local.
“More funds should be allocated to the States and Local Governments so that they can better address local concerns and fulfil their expanded constitutional obligations to the people.”
Under the existing arrangement, the federal government takes 52.68 per cent of the revenue shared, states get 26.72 per cent and local governments get 20.60 per cent.
However, in April, the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) presented a reviewed revenue-sharing formula to President Muhammadu Buhari.
RMAFC proposed a sharing formula of 45.17 per cent for the federal government, 29.79 per cent for state governments and 21.04 per cent for the local governments.
Mr Buhari had stated that the formula will be presented to the National Assembly after the conclusion of the ongoing constitutional amendment.