The Revenue Mobilisation and Fiscal Commission (RMAFC) will begin the implementation of a new revenue-sharing formula for the country in the first quarter of 2024.
The Chairman of RMAFC, Mr. Muhammed Bello Shehu, disclosed this information when he appeared before the House of Committee on Finance, in Abuja.
According to him, President Tinubu has already been briefed about the expected changes in the revenue-sharing formula for the country.
Shehu, however, noted that when the new revenue-sharing formula is approved, it will pass through the National Assembly for legislative action before it can then be implemented.
- “And I will assure this committee members that sometime next year, the commission will forward a new revenue allocation formula, first quarter to Mr president and we believe that her will forward it to the National Assembly for you to do your job on this issue. That I can assure you sir and the members too,” Mr. Shehu said.
The RMAFC Chairman also informed the committee that some agencies owe the Federal Government between N3 trillion to N6 trillion.
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In his remarks, the Chairman of the House Committee on Finance, Hon James Faleke, stated that he hopes the new revenue-sharing formula is implemented as quickly as possible.
- “Where the federal government is having the lion’s share of revenue is not right”.
- “That’s why everybody is saying government, we have no money, no food, no this and that. As if it is the responsibility of the federal government to provide food. The federal government is just to create an enabling environment and good policies. If our local government system works well, we shouldn’t be having these impacts at all. I’m a product of local government and I know what I’m talking about.
- “If our local government system works well, you don’t even know if the federal government exists or not. I’m sure we need to go back to that system”, Hon Faleke explained.
Furthermore, the lawmaker encouraged the RMAFC Chairman to bring the act setting up the Commission for amendment following an appeal by the chairman.
- “The present act does not give them the power, there’s no biting teeth and that’s why most agencies flaunt remittances. And so, I think you need to look into the act. We can look at it and amend it from our side. But we need to be aware that that act needs to be amended to make it more effective for better revenue for this country,” the lawmakers added.