By Iliya Kure
Governor Muhammadu Inuwa Yahaya of Gombe State, northeast Nigeria, has called for an upward review of statutory allocation to states and local governments in the country to enable them meet their expanding needs and demands.
Currently, all the 36 states receive 26.72%, while the 774 LGAs collect 20.60% of all accruals from the federation account, leaving the Federal Government with the share of 52.8%.
“The last time such review was successfully conducted was in 1992, some 29 years ago. Since then, a lot of changes have taken place across our social, political and economic spheres, thus, necessitating a review to ensure a fairer and equitable allocation formula that is compatible with our current realities,” Governor Yahaya said in Gombe, at the flag-off ceremony of sensitization programme on Review of Existing Revenue Allocation Formula, by the Revenue Mobilization Allocation and Fiscal Commission.
The governor argued that overtime states were forced to deal with emerging challenges inclusive of insecurity, environmental degradation, decaying infrastructure, inadequate funding for primary healthcare and basic education, hence the need for a proper review of the allocation.
Mr. Yahaya said having inherited a state in dire financial distress, fiscal discipline became the mantra of his administration.
He explained that revenue mobilization drive also received a huge boost, as the State has surpassed previous years’ record which was achieved through sustained engagement and trust-building between government and various economic stakeholders.
“We also published our annual budgets and audited accounts in line with our commitment towards transparency and accountability in governance, ushering our state into a new era of fiscal efficiency and probity. It is these policies and achievements that earned us the special recognition as the number one state in Nigeria in terms of ease of doing business”.
Governor Yahaya said given the special position of Gombe State at the centre of the northeast, the State equally serves as the regional shock-absorber, playing a comforting role in internally displaced persons from frontline insurgency states of Borno, Adamawa, and the Yobe States.
“This puts tremendous pressure on our basic infrastructure and services, it is therefore only fair that the special consideration being extended to these 3 states be also extended to Gombe State to enable us to deal with the new challenges”.
He said the discovery of oil in Gombe State and the imminent commencement of the commodity’s exploitation presents a new dynamic in fiscal relations and management, noting that the conversation will no doubt take centre stage in the subsequent phases of engagement that will follow.
“For us, we shall remain resolute and focused on utilizing our scarce resources for the benefits of all our people, I, therefore, call on all our people, especially relevant stakeholders to fully participate in this sensitization exercise to enrich our fiscal culture”.
He said his administration will give the team all the needed support to succeed in its assignment, expressing the hope that the deliberations will give birth to a more effective, fair, and equitable fiscal allocation formula for the country and enhance the existing fiscal federalism.
The Federal Commissioner representing Gombe State in the Revenue Mobilization Allocation and Fiscal Commission, Malam Mohammed Kabiru Usman Kukandaka said the objective of the sensitization was to enlighten stakeholders on the need to participate and make relevant contributions in the process of the review to assist the commission come up with fair, just, equitable and acceptable revenue formula for the country.
He said as a constitutional mandate, RMAFC is saddled with the responsibility of periodic review of the revenue allocation formula and principles in operation to ensure conformity with changing realities.
“In 1992 the vertical share of revenue to be allocated to the three tiers of government as proposed by the RMAFC was as follows: Federal Government 48.5 percent States 24.0, Local percent Governments 20.0 percent, stabilization 0.5, derivation 1 percent FCT 1 percent, development of mineral resource areas 3 percent ecology 2 percent”.
He said despite the upward review of the vertical formula by the Obasanjo administration to meet with current realities, the horizontal sharing formula which takes care of States and Local Government Areas in the country is anchored on equality in population, landmass, social development factors, and Internally Generated Revenue IGR.
Malam Kukandaka said in 2014 the Commission reviewed the sharing formula but its final report transmitted to the President for onward action is yet to see the light of the day, expressing the hope that this exercise will produce the desired result.