Mimiko seeks review of revenue allocation formula

WORRIED by the dwindling state of the economy, the Governor Olusegun Mimiko of Ondo State, yesterday, asked the Federal Government to review the revenue allocation formula for the purpose of development of states and local government areas.

 

He spoke while swearing in the 18 newly  elected Local government Chairmen and Councillors across the 18 areas of the state.

Governor Mimiko wondered why the constitution, which stipulated that the Revenue Mobilization Allocation and Fiscal Commission, RMFAC, should be reviewing the revenue allocation every five years had been jettisoned in the last seven years.

He said “with the present state of finance, it will just be apposite to call the attention of the federal government to our skewed fiscal federalism that vests a disproportionate percentage (52%) of revenue in the federal government.

However the states and local governments, the very tiers with considerable contacts with the populace, are given 26 per cent and 20 per cent respectively.”

He expressed worry that “this can only cause a major hindrance to the development and implementation of policies  at the local levels.”

Besides, he said “by virtue of Paragraph 32 (b) Part I of the Third Schedule to the 1999 Constitution of the Federal Republic of Nigeria, RMAFC is empowered to prescribe a periodic review of the Revenue Allocation formula every five years in accordance with Section 162 (2) of same constitution.

”Regrettably, this has not been done since 1999. We are appealing to RMFAC and the Federal Government, to take the appropriate bill to the National Assembly.”