GOVERANCE

LG Allocation May Increase As FG Proposes 3.13% Point Revenue Formula For Councils

 

 

 

It appears that allocation to local government councils will increase if the proposal by the federal government sails through.

As the debate on the review of the allocation of revenue amongst the three tiers of government gains traction, the federal government has proposed a 3.13 percentage point increase to the local governments.

By this proposal, the government will shed off 2.03 percentage points of its allocation, while the states will cede 1.1 percentage point, all in favour of the local governments.

 

The FG’s position was disclosed by the Secretary to the Government of the Federation, Mr. Boss Mustapha, at the town hall meeting on the review of the country’s vertical revenue allocation formula held in Abuja on Tuesday.

The meeting was convened by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).

Although the FG is willing to concede more money to the LGAs, it is also advocating that some of the items on the Exclusive List be taken off to ease some of its burdens.

The SGF was represented at the event by the Permanent Secretary, Political and Economic Affairs, OSGF, Mr. Andrew David Adejoh.

The present vertical Revenue Allocation Formula is, Federal Government 52.68%; State Governments 26.72%; Local Governments 20.60% and Derivation Formula 13%.

Chairman, RMAFC, Engr. Elias Mbam, said the Abuja public hearing brought to an end the series of public hearings with respect to the revenue review process having held the event in all the geopolitical zones.

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The Minister of the FCT, Mallam Muhammad Bello, in his paper at the event, proposed a special funding mechanism for Abuja, independent of what is allocated to the federal government.

“We have also proposed that the area councils within Abuja should also be considered just like any other local government as stated in the 1999 Constitution,” he stated.

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