Governor of Rivers State, Nyesom Wike, has expressed displeasure over the revenue sharing formula that allows the Federal Government to receive 52.68 per cent leaving states and local government councils to receive 26.72 per cent and 20.60 per cent, respectively.
In a meeting with the members of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) led by its Chairman, Elisa Mbam, at Government House, Port Harcourt, on Wednesday, Wike asked the commission to decrease revenue accruable to the Federal Government from the federation account to 40 per cent and increase those of states and local government councils to 40 and 20 per cent.
He said this was because the federal government has abandoned its responsibility of providing security and basic infrastructure to the federating states.
According to him, despite the changes that the country has been through over the years, it is regrettable that it has continued to use the 1992 revenue formula prescribed by the military government as he faulted the use of 1992 population figure, public school enrolment and public hospital bed spaces, landmass as the formula for allocation of revenue.
Wike expressed that a more equitable formula should also take into account the current population figure, enrolment in private schools, and the number of bed spaces in private hospitals.
“Using the same formula of 1992 as a basis for revenue allocation in this country is so unfortunate. And to worsen the situation under a democratic dispensation, since 1999 till now, our country has not reviewed the revenue allocation formula,” he said.
“You people should reduce the percentage of the federal government. Give them 40 per cent. Give the states 40 per cent, give Local Government 20 per cent.
“In that way, most of the responsibilities that belong to the federal government will now be taken away and given to the States.
“We cannot talk about operating a federal system without having fiscal federalism. It is practically impossible. Let’s cancel that word federalism; we are operating a unitary system. But you cannot be saying we are operating a federal system, at the same time operating a centralised system,” Wike said.
He further expressed reservations on the readiness of the federal government to implement the recommendations of RMAFC, which is currently holding a public hearing on the new revenue sharing formula across the six geo-political zones.
In his remarks, the Chairman of the commission, Elisa Mbam, explained that one of the primary mandates of the commission is to review the revenue allocation formula to conform with changing realities of the time.
He explained that it has become necessary to review the current formula because the last review was done in 1992. He remarked that there had been a lot of changes in the political and socio-economic situation of the country.
Mbam noted that the commission would engage data collated from states across the country to ensure the creation of a fair revenue formula.
“We believe that what we will get from states will help us to come up with a revenue formula that will be fair, just and equitable,” he said
