Lawmakers seek new revenue allocation formula for current economic realities.

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Faced by the dwindling economy resulting from shrinking resources, House of Representatives Thursday asked for upward review of the revenue allocation formula.

Owing to this, the lawmakers have passed a resolution asking President Muhammadu Buhari to submit to the National Assembly, proposals for a new revenue allocation formula for further legislative action.

The current revenue sharing formula which is overdue gives 52.68 percent of total allocation to the federal government, 26.72 per cent to the States while Local Governments get 20.60 percent  from the consolidated revenue account of the federation.

The House resolution came on the heels of a motion entitled, “Call For a New Revenue Allocation Formula (RAF) for the federation” brought by Hon. Rotimi Agunsoye.

Ogunsoye in the motion said: “Section 6 (1) (b) of the revenue Mobilisation Allocation and Fiscal Commission Act, Cap. R7, laws of the federation of Nigeria, 2004 prescribes for a certain committee within the agency to review the revenue allocation formula from time to time, to reflect current realities”.

“The effectiveness of the current applicable formula which is over thirty years old, would appear doubtful to reflect the realities facing the financial needs of the three tiers of government”, he said.

He added that the provision in the 1992 act which prescribes for the deduction of various percentages totalling about 7.5 per cent and also referred to as “Special Fund” has been adjudged unconstitutional by the supreme court.

He cited “Section 162 (2) of the constitution requires the President, on the recommendation of the Revenue Mobilisation Allocation and Fiscal Commission to submit a proposal for a new revenue allocation formula to the National Assembly for consideration and passage into law”.

House leader, Hon. Femi Gbajabiamila (APC, Lagos) in support of the motion said that a new revenue allocation formula ought to have been done by the previous Assemblies.

Hon. Tahir Monguno opposed the motion and said that any tier of government who is not satisfied with the current status-quo can seek redress in the courts.

The motion despite the dissenting view was adopted and passed by the House after it was put to a voice vote by the Speaker, Hon. Yakubu Dogara.

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