Kaduna State, LGs agree to a new revenue allocation scheme to boost Development
By Benjamin Auta
The Kaduna State, Local Government Councils, Legislature and Judiciary as well as other stakeholders have all agreed to a new upward improved revenue sharing formula from the federation account.
Engr Hassan Hunkuyi, who is a member representing Kaduna state at the Revenue Mobilisation, Allocation and Fiscal Commission ( RMAFC) made the revelation at a two days sensitization exercise held in Kaduna organized by RMAFC.
He said that the new sharing formula, proposed and agreed by the state and local governments are 40% for federal government, 35% state governments and 25% for local governments.
He disclosed that the old sharing formula of the federation account is obsolete as it was last reviewed 29 years ago (1992),saying that it needs to be overhaul to meet present realities.
He added that constitutionally, revenue sharing formula was supposed to be reviewed every five years for equity and distributive justice.
Also speaking on the legality of the exercise, Bar Frank Nwoko, said that the commission is aware of the agitation by local governments in the nation for autonomy which factors of derivation needs to be adequately considered.
He said that the central sharing formula is unity and cohesion of the federating units which make up the government of Nigeria.
Also speaking, a former Commissioner for Local government in Kaduna state, Alh Magaji Sadiq Hunkuyi said that Kaduna state is lucky to have a responsive government as most local governments were not paying salaries until now.
He noted that there had been various meetings in the past to address the issues of revenue sharing formula but there have been no changes hoping that the present exercise will yield results.
He said if the local governments are properly funded, the issue of insecurity will be a thing of the past as most local governments will be able to shoulder their responsibilities.
The present sharing formula in the country has the federal government having about 52.08%, state 26.72% and the 770 local governments in the country share a meagre 20.68% had remained contentious for over two decades.
The sensitization exercise is simultaneously being held nationwide by the RMAFC and it’s expected to achieve an upward review of the sharing formula of revenue in all strata of government.
