Friday, March 29, 2024

Exclusive: Federal Government to lose 3.3% in New Revenue allocation formula

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.

Advertisement

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

 

Signature TV
Signature TVhttps://signaturetv.isitedigitals.com
Signature TV is a multi-media company, owners and operators of signaturetv.org and producers of The Signature Show on AIT and Corruption Tori. Our programmes are broadcast on the AIT Network and on Seven NTA stations across the country. We are content providers for a number of television networks and some State TV stations, with a respected 24/7, high online and offline followership. We are also Communications/Media Consultants to MacArthur Foundation, Ford Foundation and OSIWA.

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Latest Articles