Committee slashes FG’s revenue share to 42 per cent

After four hours close-door session, the committee announced a unanimous decision to trim the existing federal government revenue allocation, thus bringing it down from 52 to 42 percent.By their recommendation, the 36 states of the federation will receive 35 percent allocation while local governments would receive 22.5 percent.The committee’s recommendation would be tabled at the […]

After four hours close-door session, the committee announced a unanimous decision to trim the existing federal government revenue allocation, thus bringing it down from 52 to 42 percent.
By their recommendation, the 36 states of the federation will receive 35 percent allocation while local governments would receive 22.5 percent.
The committee’s recommendation would be tabled at the plenary for consent.
Committee’s co-chairman and former Governor of Akwa Ibom State, Obong Victor Attah, told journalists at the end of the meeting that the decision of the committee was guided by the belief that some funds must be devolved to states and local governments for greater development impact.
He said this did not take away the understanding and acceptance of the fact that the federal government, at present and until decided otherwise, still has the military, the police and the entire security machinery to fund.
Attah said that during the committee’s deliberation on the Exclusive and Concurrent Legislative Lists, some items hitherto funded exclusively by the federal government had been moved to the Concurrent Legislative List for involvement of state governments.
He said before the committee decided on the revenue formula, it was fully aware that certain decisions might be taken by other committees, particularly regarding the status of the local governments.
Attah said in the event that the committee directly responsible for political restructuring recommends the sacking of the existing 774 local government areas, then the revenue allocated to the local governments will go to the states.
The committee which went into another close door session for more than three hours couldn’t reach a decision on derivation formula.
Derivation formula debate has already torn the committee members into North –South divide, with each group holding incompatible positions.
But Attah assured that a unanimous decision would be taken by the committee on the issue today.
He said the committee’s decision would be guided by certain provisions in the extant laws including the 1999 Constitution which have left ownership of mineral resources no matter where they are found in the custody of the federal government.