From ONYEKWERE
Former Director-General of the Voice of Nigeria, VON, Mr Osita Okechukwu said the proposed review of the revenue allocation formula is a “win-win-balanced federalism.”
Okechukwu said this in Enugu yesterday while addressing journalists after the Chairman of Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC, Mohammed Shehu announced plans to review the revenue allocation formula.
Okechukwu declared support for the proposed review of the existing revenue allocation formula, especially now that the constitution is being altered.
He canvassed for reduction in the huge extant revenue allocation to the federal government from 52 to 40 percent, to guarantee ultimate balanced federalism.
This, he said, would enhance the progress and prosperity of the citizenry, albeit ultimately advancing the frontiers of our grassroots democracy.
“My observation over the last decades informed that the political banditry, ultra-nepotism and tension soaked presidential election in our dear fatherland is largely due to unbalanced federalism.
“Unbalanced federalism is an outlier of the do-or-die struggle of who presides over the huge oil revenue at the over centralised federal government.
“I agree wholeheartedly with Shehu’s submission that the review of the vertical revenue-sharing formula, which determines how federally collected revenues are shared among the federal, state and local governments, has been long overdue,” he said.
Okechukwu said the 33 years old revenue formula, which is 52.68 percent for the federal government, 26.72 percent states, 20.60 percent for localgovernments and 4.8 percent special funds.
“One percent FCT and Ecological Fund; 1.68 percent Natural Resources and 0.5 percent Stabilisation Fund, that are fractions that make up the rest. Is antithetical to development and retrogressive,” he said.
As a matter of security and evolving socio-economic, political and fiscal realities, he proposed a revenue formula of 40 percent for the federal government; 40 percent for states, 10 percent for local governments and 10 percent to the rest.
He noted that the local government allocation should be reduced since genuine efforts made in the last 25 years to retrieve them from the stranglehold of our “emperor governors” had repeatedly failed.
“Even the financial autonomy initiative by President Bola Tinubu, which culminated in the July 11, 2024 Supreme Court landmark judgment had failed woefully; it has become a pragmatic imperative to stop chasing shadows,” he said.
He recalled that the revenue allocation review exercise in the past had been controversial and marred by hate pandemic of ignorant political bandits masquerading as ethno-religious champions.
Okechukwu urged divisive elements to sheath their arsenal and acknowledge the gospel truth; that abject poverty, grinding hunger, gross unemployment, crisis of inequality and palpable insecurity are still unfortunately plaguing all geopolitical zones.
He called on President Tinubu, governors, national and state legislators and patriots to breathe life into the constitution with this win-win-balanced federalism.
