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RMAFC to present draft revenue formula to Jonathan

By Businessnews Staff on September 12, 2014

The Revenue Mobilisation Allocation and Fiscal Commission is set to present the draft new revenue formula to President Goodluck Jonathan.

The Head of Public Relations, RMAFC, Mr. Ibrahim Mohammed, confirmed this in an interview with our correspondent in Abuja.

According to Mohammed, the presentation of the draft, which was scheduled for earlier in the year, had to be put off in deference to the recently concluded National Conference that also discussed the issue of revenue sharing among the three tiers of government.

The President has the responsibility to lay the new formula before the National Assembly for necessary legislation.

Mohammed said the work of the commission on the draft revenue formula was different from what the National Conference did and was based on scientific and objective findings.

When work was completed on the formula, the Chairman, Public Affairs and Communication Committee, RMAFC, Ambassador Zubairu Dada, had in a statement announced that the new revenue formula was ready to be presented to the President for necessary action.

Dada had said members of the commission unanimously adopted the draft report following a two-week retreat where all the submissions, relevant documents and inputs from stakeholders were analysed and considered.

The commission had previously embarked on a tour of the federation and carried out sensitisation visits to states, consultations, public hearings and extensive study of all relevant literature and fiscal matters relating to revenue allocation, in an effort to make the final report credible, authentic and generally acceptable to Nigerians.

Dada explained that the last time the revenue allocation formula was generally reviewed was in 1992, stressing that the current revenue allocation formula arose from the modification order issued by former President Olusegun Obasanjo in May 2002 and amended in July 2002 and January 2004.

He had said, “The order, which emanated from the Supreme Court judgment of April 5, 2002, was to bring the relevant sections of the subsisting Allocation of Revenue (Federation Account, etc) Act in conformity with the provisions of the 1999 Constitution (as amended) of the Federal Republic of Nigeria.

“It was, therefore, necessary to review the present revenue allocation formula to reflect changing realities and the yearnings and aspirations of Nigerians.”

He added that the need for distributive justice, fairness and equity in the allocation of resources as enshrined in the 1999 Constitution guided the review exercise.

[Punch]

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