New Revenue Formula Ready Before End Of 2021 — RMAFC

The Revenue Mobilisation Allocation and Fiscal Commission
(RMAFC) has disclosed a new Revenue Allocation Formula (RAF) will
be ready before the end of 2021.

RMAFC made this disclosure on Monday in a statement in
Abuja.

It said: “Arrangements to fully commence the review of the
Nation’s Revenue Allocation Formula (RAF) have been concluded”.

When completed, “the review is targeted at equitable
distribution of the accrued revenue into the Federation account to
the three tiers of government”.

The Chairman Revenue Mobilisation Allocation and Fiscal
Commission (RMAFC) Engr. Elias Mbam told members of the National
Assembly Service Commission led by Engr. Ahmed Khadi “the review of
remuneration for political and Judicial office holders will equally
take off as soon as the Federal government releases fund for
it”.

The RMAFC Chairman also told the legislators that “the RAF
review is at first concentrating on the vertical formula which has
to do with sharing of revenue between Federal, State and Local
governments.

“This will be followed by a horizontal formula which also has to
do with sharing among states and among local governments”.

Mbam stated that RMAFC is one of the 14 executive bodies saddled
with the statutory function of reviewing from time to time the
Revenue Allocation Formula and principles in operation to ensure
conformity with changing realities alongside monitoring appropriate
revenue accruals to the Federation account by the revenue
generating agencies.

He added while the review of remuneration for judicial and
Executive office holders in the Federation is subjected to further
legislation by National or State Assemblies for approval, such
approval he said must “not be more than what RMAFC has recommended,
RMAFC’S determination for legislatures at Federal, State and Local
government is final”.

In 2014, the RMAFC submitted a revised Revenue Allocation
Formula (RAF) to former President Goodluck Jonathan to transmit to
the National Assembly.

The formula never made it to the National Assembly for
ratification.

The botched 2014 RAF Mbam said “was appropriate for the three
tiers of government and in line with provisions of the relevant
laws”.

The new RAF that will be ready before the year runs out, Mbam
said, will take into consideration, security considerations, the
environmental challenges and many issues which needs to be
considered in addition.

According to Mbam, all the variables, all the issues will be
taken into consideration in the review. A new advice will be given
to the President and that is exactly what we have done.

Last year a new committee to review the Revenue Allocation
Formula was constituted.

It called for memorandum and inputs of relevant stake holders
like the federal government input, the state governments, the
national assembly, the judiciary, the local governments, civil
societies and others.

A public hearing will be held because as Mbam stated, “there are
so many variables that will determine the time that is not within
our control but we will do our best to get it done within a
reasonable time”.

The Revenue Mobilisation Allocation and Fiscal Commission
(RMAFC) has disclosed a new Revenue Allocation Formula (RAF) will
be ready before the end of 2021.

RMAFC made this disclosure on Monday in a statement in
Abuja.

It said: “Arrangements to fully commence the review of the
Nation’s Revenue Allocation Formula (RAF) have been concluded”.

When completed, “the review is targeted at equitable
distribution of the accrued revenue into the Federation account to
the three tiers of government”.

The Chairman Revenue Mobilisation Allocation and Fiscal
Commission (RMAFC) Engr. Elias Mbam told members of the National
Assembly Service Commission led by Engr. Ahmed Khadi “the review of
remuneration for political and Judicial office holders will equally
take off as soon as the Federal government releases fund for
it”.

The RMAFC Chairman also told the legislators that “the RAF
review is at first concentrating on the vertical formula which has
to do with sharing of revenue between Federal, State and Local
governments.

“This will be followed by a horizontal formula which also has to
do with sharing among states and among local governments”.

Mbam stated that RMAFC is one of the 14 executive bodies saddled
with the statutory function of reviewing from time to time the
Revenue Allocation Formula and principles in operation to ensure
conformity with changing realities alongside monitoring appropriate
revenue accruals to the Federation account by the revenue
generating agencies.

He added while the review of remuneration for judicial and
Executive office holders in the Federation is subjected to further
legislation by National or State Assemblies for approval, such
approval he said must “not be more than what RMAFC has recommended,
RMAFC’S determination for legislatures at Federal, State and Local
government is final”.

In 2014, the RMAFC submitted a revised Revenue Allocation
Formula (RAF) to former President Goodluck Jonathan to transmit to
the National Assembly.

The formula never made it to the National Assembly for
ratification.

The botched 2014 RAF Mbam said “was appropriate for the three
tiers of government and in line with provisions of the relevant
laws”.

The new RAF that will be ready before the year runs out, Mbam
said, will take into consideration, security considerations, the
environmental challenges and many issues which needs to be
considered in addition.

According to Mbam, all the variables, all the issues will be
taken into consideration in the review. A new advice will be given
to the President and that is exactly what we have done.

Last year a new committee to review the Revenue Allocation
Formula was constituted.

It called for memorandum and inputs of relevant stake holders
like the federal government input, the state governments, the
national assembly, the judiciary, the local governments, civil
societies and others.

A public hearing will be held because as Mbam stated, “there are
so many variables that will determine the time that is not within
our control but we will do our best to get it done within a
reasonable time”.