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RMAFC allocate LGs separate account in new revenue formula irrespective of pressure from State Governors

By on January 28, 2013

RMAFC chairman Engr. Elias Mbam

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) have disclosed its determination to go ahead and create separate accounts for the Local governments in the anticipated new revenue prescription, irrespective of pressure from Governors.

According to a reputable source “the position of RMAFC is that local governments should keep their funds. RMAFC wants separation of accounts for both states and local governments.”

The source had confirmed that State Governors have put the commission under serious pressure to hold on to funds meant for local governments.

According to the source, “Governors say they want to hold funds for local governments, because there are only two tiers of government recognised all over the world. So they want to keep holding local government funds.”

Nevertheless, he said RMAFC, was not relaxing with the pressure mounted on them by the Governors, however it has given it straight to the Governors that “RMAFC wants separation of accounts for states and local governments.”

The manoeuvrings around the new revenue procedure are, not restricted to who wheels local government allocations. It was further exposed that both states and local governments are as well strategising to have Federal Government’s allocation reduced.

Their argument: “They should have more because they have more responsibilities that impact directly on the lives of the people.”

The source disclosed that backing for the new revenue procedure has been included in the 2013 budget “and once the budget is signed and distribution is made, RMAFC will go round the country to get final views.”