The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has commenced the process of reviewing the current revenue allocation formula for governments in the country with a two-day public hearing for the South West zone in Lagos today, Monday.
The south west public hearing will kick-off the nationwide consultations expected to lead to a new revenue sharing formula for the country. The states expected to participate are Lagos, Ekiti, Oyo, Ogun, Ondo and Osun.
Under the current sharing arrangement, the federal government takes 52.68 per cent of the revenue shared; states get 26.72 percent while the local governments get 20.60 per cent.
The current review will focus only on the vertical allocation which covers allocations to the federal, states and local governments and does not imply reduction in the cost of governance, the commission said yesterday.
RMAFC said the review is in pursuant of its constitutional mandate that empowers it to “review from time to time, the revenue allocation formula and principles in operation to ensure conformity with changing realities.”
A schedule of the public hearings released by RMAFC shows that the south south zone will hold in Rivers State on Thursday October 7 to Friday October 8 with participants expected from Rivers, Akwa Ibom, Bayelsa, Cross River, Delta and Edo states.
For the south east which holds in Imo State from October 11-12, participants are expected from Abia, Anambra, Ebonyi, Enugu and Imo state
In the north west, Kaduna State will host the public hearing with participants expected from Jigawa, Kano, Katsina, Sokoto and Zamfara states.
Kogi State will be the host for the north central on October 19-20th, with participants from Benue, Kwara, Nasarawa, Niger and Plateau states.
In the north east, the public hearing will hold in Gombe State on 21 and 22 October. Participants are expected from Adamawa, Bauchi, Borno, Taraba, and Yobe states.
In the Federal Capital Territory, the public hearing will hold on October 25 and 26.
Participants at the zonal public hearings are expected to be drawn from states executives, legislatures, judiciary, local government officials, civil society groups, organised labour, elder statesmen, traditional rulers and the general public.
The commission urged all stakeholders to participate effectively in the process and to submit five hard copies of their memoranda as well as soft copy of the proposed review to its office in Abuja or during the hearings across the zones.