The House of Representatives on Thursday asked President Muhammadu Buhari to lay before the National Assembly, a new formula for sharing revenue among the three tiers of government.
Nigeria’s economy is mainly dependent on crude oil revenues and paid into the Federation Account.
Funds are drawn monthly from the account and shared by the Federal, State and Local Governments in the country, with the Federal Government taking the lion’s share.
But, on Thursday, lawmakers said the current sharing formula, which favoured the federal government, was no longer realistic.
They demanded a review of the formula to make more money available to other tiers of government.
The resolution came after a member, Mr. Rotimi Agunsoye, moved a motion on “Call for New Revenue Allocation Formula for the Federation.”
The House recalled that the current formula in place was enacted in 1982 and was amended once in 1992, about seven years before the 1999 Constitution came into effect.
However, members noted that the constitution in Section 162(2) made provisions for the President, on the recommendation of the Revenue Mobilisation Allocation and Fiscal Commission, to lay a proposal for a new revenue formula before the National Assembly.
Leading the debate on the motion, Agunsoye observed that the constitution had been consistently flouted on revenue sharing formula.
He stated that a similar provision was made in the RMAFC Act, 2004, for a special committee on revenue sharing formula.
Reps demand new revenue formula from Buhari
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