FG To Review Vertical Revenue Allocation To 3 Tiers Of Government

The Federal Government (FG) announced that it is ready to review the vertical revenue allocation formula it currently operates towards the 3 tiers of government in the country.

This was disclosed by Alhaji Modu Aji, Commissioner, Revenue Mobilisation and Fiscal Allocation Commission (RMFAC), at an interactive session with officials of Yobe State Government, on Friday in Damaturu, according to the News Agency of Nigeria.

What RMFAC Commissioner said

“The current revenue allocation formula stands at 52.68 per cent for the Federal Government, that is including special fund for the FCT; Ecological, Stabiliation and Natural Resources Development Funds.

“You then have 26.72 per cent for the states and 20.6 per cent for Local Government Areas.

“This is the vertical arrangement at the moment and it has been the arrangement since 1992.”

He added that the model needs to be reviewed citing other unsuccessful attempts due to change of governments, absence of the National Assembly, among others.”

What you should know

The news about revenue allocation remodelling comes a week after a Federal High Court in Rivers state awarded that Value Added Tax collection should go to states, a ruling that the Rivers House of Assembly ratified this week.

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