Lornke
Stakeholders from the six south south States of Nigeria say the current revenue sharing formula between the three tiers of government is no longer sustainable as it does not represent current reality given the huge financial responsibility borne by the state government.
They made this call at the ongoing zonal public hearing on the review of the current revenue allocation formula.
Declaring the event opened, the Rivers State governor, Nyeosom Wike who was represented by the deputy governor, said the review has become necessary as the current revenue formula is no longer sustainable.
On his part, the chairman of the revenue mobilisation allocation and fiscal commission ELIAS MBAM, While advising stakeholders to submit their presentation early before the final submission to the presidency, noted that the review was informed by the fact that the last reviews were carried out 28 years ago in 1992.
Other stakeholders at the public hearing advocated for true fiscal federalism that will give citizens the right to hold their leaders accountable and advised for alternatives to fossil fuel.
On his part, the executive director policy alert, a civil society organization, Tijan Bolt said “ecology and stabilization fund should be distributed appropriately to states. The ecological fund given to NDDC should be reviewed. And ecological funds should be given to the state government. There has been a shortfall in the release of funds, if this is done it will avail the state government adequate revenue.
“States who have IGR should be given incentives, to reduce risk of emergencies that state government face”
Meanwhile, the collective resolute submission by governours of the six south south states and their local government chairmen as presented by Delta state commissioner of finance, Dr Fidelis Ekkenwor, is that the federal government should put into consideration south south terrain before allocation of funds, head quarters of oil and gas companies should be domicile in their operational states.
“There should be an upward review of the 13% derivative to oil-producing regions, and the percentage should move up. Our period of growth agreed that true federalism will be effective if states manage their resources. And that every state take charge of their resources and remit them to the federal government, at an agreed percentage; and this will remove lots of focus from the centre.
The revenue allocation to the three-tier should be, 35% to the federal government, 42% to state government and 23% to local government.
There should be a special status for Cross Rivers State, special funding of 1.5% be made available to Cross Rivers state, as the first federal capital of Nigeria.
With the current sharing arrangement, the Federal Government takes 52.68 per cent, States get 26.72 per cent while the Local Governments get 20.60 per cent, it is the submission of these stakeholders that the outcome will reflect the yearnings and aspirations of Nigerians.
