States Insist on more Revenue from Federation Account
- By Simeon Ogoegbulem
- Published February 21st, 2011
- News
- Unrated
Strong indications have emerged that the 36 states will not rest on their oars in their quest for increased share from the Federation Accounts. The agitation of the second tier of government is coming even as the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is sets to produce a new allocation formula for the country.
The position of the 36 states came at the recent retreat for the commissioners and management of RMAFC in Uyo, the Akwa Ibom, where Governor Godswill Akpabio stated that continuous calls for more funds allocation from the states would persist given the need to promote development from the grassroots to the centre, instead of the present situation of the federal government taking on too much funds for very little work being done.
The states are also insisting that transparency and accountability from all revenue collection agencies in the country will sincerely enhance the profile of federally generated revenue for distribution to the three tiers of government.
Akpabio said instead of the federal government deploying a larger proportion of funds received from the federation account to consultancy services and other sundry expenses that do not impact positively on the people, it should have the courage to let the states have more for developmental purposes.
He stated that the federal government must have the courage to agree that development can only move from the states to the centre and not the other way round.
The governor therefore urged the commission to urgently address the contentious issue of revenue allocation formula and come up with a new formula that would ensure equity, justice and fairness to all stakeholders. He also said the commission should carry out a critique of existing processes for reviewing indices of sharing of the 13 per cent derivation fund to avoid the recurrent problem of over payment and under payment for some states.
Declaring open the retreat, Vice President Namadi Sambo, pledged federal government’s readiness to support RMAFC in ensuring a new revenue allocation formula. Represented by Dr Olusegun Aganga, finance minister, Sambo urged all stakeholders in the sharing of federation account to cooperate with the commission in this regard, adding that federal government was aware of the enormous responsibilities of the commission and would not renege in its pledge to provide the necessary environment for it to deliver on its mandate.
He expressed the desire of the federal government to reduce the high cost of governance, adding that government has already taken steps in the 2011 budget to address the issue and challenged the RMAFC to come up with a solution to the problem.
Earlier, Engineer Elias Mbam, RMAFC chairman, said the retreat was packaged to enable the newly appointed members of the commission to carefully examine and understand the operations and fundamental responsibilities of the commission having regard to the constitutional functions of the commission which are very sensitive and challenging.
Mbam said with the retreat, the commission would be able to set its agenda and chart a new course for the achievements of its targets.
