What do you think about National Revenue Allocation? Should States be cut out of the sharing formula?

Revenue is shared in accordance with the vertical formula, as determined by RMAFC and approved by the National Assembly. 

The formula allocates 52.68%,  to federal, 26.72% to states and 20.60% local governments. In addition, 13% is deducted as a first line charge and is further shared among the oil producing States. 

Some analysts argue that this is the main reason Nigeria is not working. We give too much money to federal and states and that’s the center of corruption and public theft. Some even allege that over 70 percent of allocation assigned to federal is stolen, wasted and used to pay Bogos salaries and allowances. 

Some argue that the extra 13% going to oil producing states should stop immediately after these oil producing states have development commissions like NDDC that is grossly mismanaged. 

They further argue that it is better we change the formula. Let us move all developments programs from roads, hospitals, schools, even funding of universities and police all to local governments level and let us assign 60 percent of total allocation to local governments, thirty percent to federal governments to manage the national military and international affairs, and the remaining 10 percent to be given NGOs to run programs nationwide. 

The argument here is that state governments should not be given any federal allocation, let states source of income be generated internally from states, this will make the governors sit up and cut their coats according to the cloth they have. 

Join the Nigerian National Conversation, let us know what you think. What do you think of this sharing formula? Can this be the solution to our problems?

Post a Comment

Previous Post Next Post