Ahead of the review of the revenue sharing formula scheduled to start on Thursday, there are strong indications that state governors may demand 42 per cent of the federal allocation as against the 26.72 per cent they currently get.
The governors are also asking that the share of the Federal Government be slashed from the current 52.68 per cent to 37 per cent, while requesting that the share of local governments be increased from the current 20.60 per cent to 23 per cent in the new formula.
The Chairman, Revenue Mobilisation Allocation and Fiscal Commission, Mr Elias Mbam, had on Tuesday revealed that the commission would set up a committee in the coming week to review the revenue sharing formula for federal, states and local governments due to the current economic realities.
The current revenue sharing formula was designed during the tenure of former President Olusegun Obasanjo, who ruled between 1999 and 2007.
But, ahead of the inauguration of the review committee on Thursday, a highly placed source privy to the pre-meeting discussions among governors told one of our correspondents on Thursday that the governors might adopt the recommendation of a report earlier submitted by a sub-committee set up by the forum to review the formula.
The source, who asked not to be named, said, “A committee was set up by the forum and that is the position of the forum on the matter of the revenue formula. The sub-committee met as far back as 2011 and it was made up of six governors, headed by the then governor of Lagos State, Mr Babatunde Fashola.
“The members were Murtala Nyako of Adamawa State; Sullivan Chime of Enugu State; Babangida Aliyu of Niger State; Rotimi Amaechi of Rivers State and Aliyu Wamakko of Sokoto State.
“From the report they submitted to the forum, they recommended that the Federal Government should now get 35 per cent; states should get 42 per cent and local government should get 23 per cent. That was the recommendation and that is what we have continued to push for.”
When asked what the governors based their proposal on, the source said they looked at their quest to be able to pay the minimum wage; the need for more resources to fight insecurity and the decaying infrastructure in their domain, which, according to him, the states do not have the funds to address.