North-West wants lion’s share of federal allocation for states, LGs
The seven North-Western states on Monday demanded for a lion’s share of revenue allocation for both states and local government areas in the region.
According to them, the two arms of government should take 60 per cent while the Federal Government should take 40 per cent.
The North-Western states comprising Kaduna, Kano, Katsina, Sokoto, Jigawa, Kebbi and Zamfara, made this demand in their respective presentations at the zonal public hearing on the review of the current revenue allocation formula in Kaduna on Monday.
The states representatives noted that the second tier of government is also saddled with funding of security apparatus which is the sole responsibility of the Federal Government.
In its presentation, Kano State, represented by the Secretary to the State Government, Alhaji Usman Alhaji, expressed worry that the Federal Government was taking too much of the revenue than states and local government areas, adding that the “Federal Government should take 41 per cent, states 34 per cent, local government areas 24 per cent and we need an independent one per cent for Kano State because it is a mini Nigeria.”
Katsina State also called for 35 per cent for states, 25 per cent for local government and 40 per cent for Federal Government.
Jigawa State Commissioner for Finance and budget, Alhaji Ibrahim Babangida Umar, also said that states and local government should take lion’s shares of the allocation for rapid development, proposing 44 per cent for federal, 34 per cent for states and 22 per cent for local governments.
Permanent Secretary, Ministry of Finance in Kaduna State, Mohammed Shuaibu, said: “Certain percentage be set aside for poverty/insecurity ridden states, and 13 per cent derivation should remain, but extend to mineral resources also.”
In his keynote address at the event, Kaduna state governor, Nasir El-Rufai, who was represented by his deputy, Dr. Hadiza Balarabe, said: “Our reality is that the Federal Government has since the late 1960s acquired powers and resources similar to those exercised by the sovereign in unitary systems. Most of the 36 states rely on the revenues from the Federation Accounts Allocation Committee (FAAC).
“The Federal Government retains the largest chunk of federation resources. It does too much but is too stretched and so does little well.”
In his open remarks, Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr Elias Mbam, gave reasons revenue allocation remained unreviewed for 29 years contrary to constitutional provisions of every five year review.
Engineer Mbam disclosed that due to socio-economic and political changes in the country, the allocation was last reviewed in 1992.
“As you may all be aware, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) by virtue of paragraph 32 (b), part 1 of the Third Schedule to the 1999 Constitution of the Federal Republic of Nigeria ( As Amended) is empowered, “to review from time to time the Revenue Allocation Formula and principles in operation to ensure conformity with changing realities, provided that any Revenue Formula which had been accepted by an Act of the National Assembly shall remain in force for a period of not less than five years from the date of commencement of the Act.
“In line with the above constitutional provision and the fact that there had been several socioeconomic and political changes in the country since the last review in 1992, the Commission has commenced the process of reviewing the subsisting revenue allocation formula to reflect these changing realities.
“Accordingly, the commission has designed processes and guidelines to ensure adequate participation of Nigerians. In this regard, the commission has undertaken sensitization visits to all the states and local governments to make sure that the generality of Nigerians participate in the process,” The RMAFC boss said.