Local governments are to get additional 3.3 per cent in the new revenue formula being proposed by the Revenue Mobilization, Allocation and Fiscal Commission.
The new formula is expected to come into effect in the second quarter of 2022, after the commission would have taken all legal steps to make it binding on all triers of government.
In an exclusive interview with Signature TV, the Director of Finance and Administration of Association of Local Governments in Nigeria, ALGON, Nuhu Ozigi said after extensive consultants and presentations, the federal government decided to concede an additional 3.3 per cent to the local governments.
In the current revenue allocation formula, the federal government receives 52.68 per cent of the distributable fund, from the federation account, while the states and local governments get 26.72 per cent and 20.60 per cent respectively.
By conceding 3.3 per cent to the local governments, the federal government will now be left with 49.38 per cent unless it makes further concessions to the state governments which have advocated for a further reduction in federal allocation and more to the state and local governments which bear a greater burden in providing infrastructure and services to Nigerians.
But the federal government and a number of political economists have argued against more allocation to the states, wondering about their accountability records and to what purpose present allocation to the states have been put.
For the full interview visit: www.signaturetv.org