Reps ask Buhari to submit new revenue sharing formula

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The House of Representatives has asked President Muhammadu Buhari to submit proposal for a new revenue allocation formula for the three tiers of Nigerian government.

The current revenue formula was enacted in 1982 and amended in 1992 before its coming into force in the 1999 Constitution.

The House therefore expressed worries over the effectiveness of the formula, which “appears doubtful” to reflect the current realities in relations to financial needs of the three tiers of government.

The resolution to demand new proposals from Mr. Buhari followed a motion sponsored by Rotimi Agunsoye.

Mr. Agunsoye argued that the revenue formula was long due for review.

Commenting on the motion, Mohammed Monguno, queried why the House would not urge the Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, to perform its statutory function of reviewing the formula to reflect contemporary realities.

He said RMAFC was saddled with the responsibility of fixing revenue sharing formula for the country.

Mr. Monguno therefore asked his colleagues to pass a resolution that would see the House going to court for writ of mandamus, compelling the RMAFC to perform its function.

But Mr. Monguno was countered by the Majority Leader, Femi Gbajabiamila, who said the House should first exhaust its constitutional authority before approaching the court.

He said the House should compel RMAFC to perform its function of reviewing the formula and make recommendation to the president in respect of same.

Meanwhile, he said, Mr. Buhari should present the new proposals to National Assembly.

However, the Minority Leader, Leo Ogor, noted that the subject of the Motion had been entertained by the 7th Assembly and that RMAFC had actually made recommendations for a new revenue formula.

Mr. Ogor therefore maintained that it was Mr. Buhari that had the responsibility to present the new proposals to the National Assembly.

To the effect of Mr. Ogor’s amendment, the first prayer in the motion asking RMAFC to review the revenue formula was expunged.

The House therefore resolved that “the President should, as a matter of urgency, submit to the National Assembly proposals for a new Revenue Allocation Formula, for further legislative action.”

Source: PremiumTimes