The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has disclosed a new Revenue Allocation Formula (RAF) will be ready before the end of 2021.
RMAFC made this disclosure on Monday in statement in Abuja.
It said: “Arrangements to fully commence the review of the Nation’s Revenue Allocation Formula (RAF) have been concluded”.
When completed, “the review is targeted at equitable distribution of the accrued revenue into the Federation account to the three tiers of government”.
The Chairman Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Engr. Elias Mbam told members of the National Assembly Service Commission led by Engr. Ahmed Khadi “the review of remuneration for political and Judicial office holders will equally take off as soon as the Federal government releases fund for it”.
The RMAFC Chairman also told the legislators that “the RAF review is at first concentrating on the vertical formula which has to do with sharing of revenue between Federal, State and Local governments.
This will be followed by a horizontal formula which also has to do with sharing among states and among local governments”.
Mbam stated that RMAFC is one of the 14 executive bodies saddled with the statutory function of reviewing from time to time the Revenue Allocation Formula and principles in operation to ensure conformity with changing realities alongside monitoring appropriate revenue accruals to the Federation account by the revenue generating agencies.
He added while the review of remuneration for judicial and Executive office holders in the Federation is subjected to further legislation by National or State Assemblies for approval, such approval he said must “not be more than what RMAFC has recommended, RMAFC’S determination for legislatures at Federal, State and Local government is final”.
In 2014, the RMAFC submitted a revised Revenue Allocation Formula (RAF) to former President Goodluck Jonathan to transmit to the National Assembly.
The formula never made it to the National Assembly for ratification.
The botched 2014 RAF Mbam said “was appropriate for the three tiers of government and in line with provisions of the relevant laws”.
The new RAF that will be ready before the year runs out, Mbam said, will take into consideration, security considerations, the environmental challenges and many issues which needs to be considered in addition.
According to Mbam, all the variables, all the issues will be taken into consideration in the review. A new advice will be given to the President and that is exactly what we have done.
Last year a new committee to review the Revenue Allocation Formula was constituted.
It called for memorandum and inputs of relevant stake holders like the federal government input, the state governments, the national assembly, the judiciary, the local governments, civil societies and others.
A public hearing will be held because as Mbam stated, “there are so many variables that will determine the time that is not within our control but we will do our best to get it done within a reasonable time”.