New Revenue Formula Underway
- By Simeon Ogoegbulem
- Published June 6th, 2011
- News
- Unrated
The Revenue Mobilization, Allocation and Fiscal Commission (RMFAC) has again assured that a new revenue sharing formula for the three tiers of government is on the way. RMFAC said the new revenue formula which would be ready by early next year would allocate resources equitably to all tiers of government.
The 36 states of the federation have been crying foul over the “lopsided” sharing formula which the states alleged is tilted highly in favour of the federal government. The states at every meeting of the Federal Accounts Allocation Committee (FAAC) have argued and requested for higher resources than what the federal government gets insisting that they perform more responsibilities than the federal government.
Engineer Elias Mbam, chairman of RMAFC, said in Abuja last week that the task of getting a new revenue formula is tasking. Mbam noted that coming up with a new revenue formula would involve looking into series of documents, making consultations and going to the field to verify some of the indices.
Mbam also stated that Akwa Ibom is to refund N10.91 billion to Rivers State government following the recommendation of the committee set up to look into the Supreme Court judgment on the disputed 86 oil wells between the two states. The report was submitted to the chairman of the commission, Alhaji Abdullahi Maiunguwa last week.
Abdullahi said the committee, which was set up last April, relied on documents, data and technical information provided by various agencies and institutions of government related to the matter. He said in the course of carrying out the assignment, the committee received data on 86 oil wells attribution from the National Boundary Commission in conjunction with the Office of the Surveyor General of the Federation and their respective production data from the Department of Petroleum Resources.
He said the Office of the Accountant General of the Federation provided all the documents on the 13 per cent derivation fund during the period under consideration by the committee.
CBN provided information on interest rates to be applied for the purpose of the assignment. Maiunguwa said the computation of the amount due to Rivers State covered a period from April 2009 to April 2011.
The 36 states of the federation have been crying foul over the “lopsided” sharing formula which the states alleged is tilted highly in favour of the federal government. The states at every meeting of the Federal Accounts Allocation Committee (FAAC) have argued and requested for higher resources than what the federal government gets insisting that they perform more responsibilities than the federal government.
Engineer Elias Mbam, chairman of RMAFC, said in Abuja last week that the task of getting a new revenue formula is tasking. Mbam noted that coming up with a new revenue formula would involve looking into series of documents, making consultations and going to the field to verify some of the indices.
Mbam also stated that Akwa Ibom is to refund N10.91 billion to Rivers State government following the recommendation of the committee set up to look into the Supreme Court judgment on the disputed 86 oil wells between the two states. The report was submitted to the chairman of the commission, Alhaji Abdullahi Maiunguwa last week.
Abdullahi said the committee, which was set up last April, relied on documents, data and technical information provided by various agencies and institutions of government related to the matter. He said in the course of carrying out the assignment, the committee received data on 86 oil wells attribution from the National Boundary Commission in conjunction with the Office of the Surveyor General of the Federation and their respective production data from the Department of Petroleum Resources.
He said the Office of the Accountant General of the Federation provided all the documents on the 13 per cent derivation fund during the period under consideration by the committee.
CBN provided information on interest rates to be applied for the purpose of the assignment. Maiunguwa said the computation of the amount due to Rivers State covered a period from April 2009 to April 2011.
