RMAFC Presents New Revenue Formula December

The Revenue Mobilisation Allocation and Fiscal Commission
(RMAFC) has said the new revenue allocation formula will be
presented to President Muhammadu Buhari by the end of 2021.

Chairman, Revenue Mobilisation Allocation and Fiscal Commission
(RMAFC) Engr. Elias Mbam, made this disclosure on Tuesday in Abuja
at a briefing on the proposed new Revenue Allocation formula.

Mbam assured that “the new formula will meet yearning and
expectations of three tires of governments”.

The RMAFC chairman noted that “the formula which is being
reviewed is targeted at equitable distribution of the accrued
revenue into the Federation Account to the three tiers of
government and this will be concluded before the end of 2021”.

Some of the reasons for embarking on the proposed new revenue
formula, Mbam said, include: “the Political structure of the
country has since changed with the creation of six additional
States in 1996, which brought the number of states to 36.
Correspondingly, the number of Local Governments also increased
from 589 to 774.

“There have been some considerable changes arising from the
policy reforms that altered the relative share of responsibilities
of the various tiers of Government including the, controversies
over funding of Primary education, Primary health care etc.

“Inadequate/decaying infrastructure and heightened widespread
internal security challenges across the country. Ecological
challenges like global warming, desertification, flooding and
population explosion; and

“Inability of the current vertical Formula to adequately address
the apparent mismatch between statutorily assigned functions and
tax powers of each of the three levels of government.”

Mbam said the current vertical revenue formula being used by the
three tiers of government was reviewed and passed into law 28 years
ago.

The age of the revenue formula in use, he said, has made it
imperative for a new revenue formula “for these various
reasons”.

The Revenue Mobilisation Allocation and Fiscal Commission
(RMAFC) has said the new revenue allocation formula will be
presented to President Muhammadu Buhari by the end of 2021.

Chairman, Revenue Mobilisation Allocation and Fiscal Commission
(RMAFC) Engr. Elias Mbam, made this disclosure on Tuesday in Abuja
at a briefing on the proposed new Revenue Allocation formula.

Mbam assured that “the new formula will meet yearning and
expectations of three tires of governments”.

The RMAFC chairman noted that “the formula which is being
reviewed is targeted at equitable distribution of the accrued
revenue into the Federation Account to the three tiers of
government and this will be concluded before the end of 2021”.

Some of the reasons for embarking on the proposed new revenue
formula, Mbam said, include: “the Political structure of the
country has since changed with the creation of six additional
States in 1996, which brought the number of states to 36.
Correspondingly, the number of Local Governments also increased
from 589 to 774.

“There have been some considerable changes arising from the
policy reforms that altered the relative share of responsibilities
of the various tiers of Government including the, controversies
over funding of Primary education, Primary health care etc.

“Inadequate/decaying infrastructure and heightened widespread
internal security challenges across the country. Ecological
challenges like global warming, desertification, flooding and
population explosion; and

“Inability of the current vertical Formula to adequately address
the apparent mismatch between statutorily assigned functions and
tax powers of each of the three levels of government.”

Mbam said the current vertical revenue formula being used by the
three tiers of government was reviewed and passed into law 28 years
ago.

The age of the revenue formula in use, he said, has made it
imperative for a new revenue formula “for these various
reasons”.