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Reps Fault Existing Revenue Allocation Formula



The House of Representatives has posited that the current revenue allocation formula in the country is illegal and unconstitutional as it is yet to be approved by any authority.

The position was made yesterday by an adhoc committee Investigating data collection processes, maintenance and usage by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

Chairman of the committee, Hon. Mark Gbillah, who stated this at an interactive session with the management of the commission, added that the National Assembly would not accept such development.

Responding to questions from members of the panel, the head of the commission, Shettima Umar Abba Gana, said it reviewed the revenue sharing formula among all tiers of government periodically adding that RMAFC’s revenue sharing proposals are usually drawn and sent to the presidency, which in turn forwards same to the National Assembly for approval.

Abba Gana said that the commission had sent proposals to the presidency but that he could not ascertain if same had been sent to the lawmakers for approval.

The lawmakers, however, insisted that his response was not convincing and went on to describe the existing formula as illegal.

“What this means is that the current revenue allocation formula is illegal and unconstitutional because it is not backed by law. And if it is true that you got it across to the president, then it should have been here by now.

“You should confirm to us who submitted the allocation formula proposal to the National Assembly, at what stage and time,” Gbillah said.

The committee further observed that the current method of data collection for revenue sharing formula was ‘archaic and outdated,’ noting that it would do everything within its powers to ensure the commission’s operations are ICT-compliant.

It decried a situation where states send data to the commission manually, saying it would stall the system’s growth and efficiency.