Headlines
Wike Faults Revenue Sharing Formula, Demands Increased Allocation to States
- /home/rhoncare/pointblank.ng/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 27
https://pointblank.ng/wp-content/uploads/2019/04/Wike-1000x600.jpg&description=Wike Faults Revenue Sharing Formula, Demands Increased Allocation to States', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
- Share
- Tweet /home/rhoncare/pointblank.ng/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 69
https://pointblank.ng/wp-content/uploads/2019/04/Wike-1000x600.jpg&description=Wike Faults Revenue Sharing Formula, Demands Increased Allocation to States', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
Rivers state Governor, Nyesom Wike, has urged the Revenue Mobilisation Allocation and Fiscal Commission to reduce revenue accruable to the Federal Government from the federation account to 40 per cent, and increase those of states and local government councils to 40 and 20 per cent respectively.
The governor said the current revenue sharing formula that allowed the Federal Government to take 52.68 per cent, and the states and local government councils to take 26.72 per cent and 20.60 percent respectively, was unacceptable.
Wike made the assertion when members of the RMAFC, led by its chairman, Elisa Mbam, paid him a courtesy call at the Government House, Port Harcourt on Wednesday.
The governor observed that despite the changes that the country had been through in the past 29 years, it was regrettable that it had continued to use the 1992 revenue formula prescribed by the military.
This was contained in a statement issued by the Special Assistant to the Governor on Media, Kelvin Ebiri titled ‘Wile calls for upward review of revenue allocation to states’ and made available to journalists on Wednesday.
Wike faulted the use of 1992 population figure, public school enrolment and public hospital bed spaces, land mass as formula for allocation of revenue.
He argued that a more equitable formula should also take into cognisance current population figure as well enrolment in private schools and number of bed spaces in private hospitals.
“Using the same formula of 1992 as a basis for revenue allocation in this country is so unfortunate. And to worsen the situation under a democratic dispensation, since 1999 till now, our country has not reviewed the revenue allocation formula” Wike stated.
Governor Wike urged the commission to reduce the revenue accruable to the federal government to 40 percent because the it has abdicated its responsibility of providing security and basic infrastructure to the federating states.
“You people should reduce the percentage of the federal government. Give them 40 percent. Give the states 40 percent, give Local Government 20 percent. In that way, most of the responsibilities that belong to the federal government will now be taken away and given to the States,$ he added.
He noted that the current centralised federal system in operation in Nigeria has made it impossible for most states to look inwards and harness their potentiall, saying the country’s vast resources, will continue to amount to nothing if the states are not allowed to use their resources to drive and determine their development.
“We cannot talk about operating a federal system without having a fiscal federalism. It is practically impossible. Let’s cancel that word federalism, we are operating a unitary system.
“But you cannot be saying we are operating a federal system, at the same time operating a centralised system,” the governor said.
He expressed reservation about the willingness of the present federal government to implement the recommendations of the revenue mobilisation and fiscal commission, which is currently holding public hearing on new revenue sharing formula across the six geopolitical zones.
Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) chairman, Elisa N. Mbam explained that one the major mandate of the commission was to review from time to time the revenue allocation formular to conform with changing realities.
Mbam explained that it has become necessary to review the current formular because the last review was done in 1992. He observed that there has been a lot of changes in the political and socio-economic situation of the country.
According to him, the data that will be collated from the states will help the commission to arrive at a fair revenue formular.
“We believe that what we will get from states will help us to come up with a revenue formular that will be fair, just and equitable,” he stated.
The Punch
The Allied Peoples Movement (APM) presidential candidate, Seyi Makinde, on Thursday, criticised President Bola Tinubu’s “Emi Lokan” slogan ahead of the 2027 presidential election.
Makinde said Nigerians do not need “turn-by-turn nepotism”, arguing that voters should be free to decide who becomes the country’s next president in 2027.
The Oyo State governor spoke during the APM’s town hall meeting in Akure, Ondo State.
Makinde asked: “How can someone say ‘Eemi lokan’ in a country like Nigeria? You were given the opportunity. If you recall the 1999 presidential election, the South-West voted massively for Baba Olu Falae, but the rest of Nigerians voted for Baba Obasanjo. So, this is not an issue that only the South-West can resolve; it is an issue we must address collectively as Nigerians.
“We do not want ‘turn-by-turn nepotism’, nor do we want a situation where people say, ‘I will vote for projects because it is my turn’. You will not finish those projects, and when it becomes someone else’s turn, they will do the same thing. We will end up with a Nigeria where we cannot get value for the resources belonging to Nigerians.
“The Reset Nigeria agenda is about building a country where infrastructure development supports economic growth and addresses the concerns of young people and women.
“Once we fix our economy, no zone will be left behind, and no demographic group will be left behind.”
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has denied saying the Federal government will introduce a fuel tax when the economy stabilises and income levels improve.
In a post on X on Tuesday, Oyedele said his remarks during an interview with ARISE News was misrepresented, insisting that a “fuel tax is not on the table.”
However, during the interview with Rotus Odiri, ARISE News Business Correspondent, on the sidelines of the 2026 International Monetary Fund and World Bank annual meetings in Bangkok, Thailand, Oyedele said the tax would come when income levels improve enough for Nigerians to accommodate it.
He said taxes account for between 20 and 80 percent of pump prices in some countries, while many African countries impose between six and 10 different taxes on fuel products.
He said introducing fuel tax while petrol was still subsidised would have been counterproductive because government would effectively be paying the tax itself.
According to him, imposing the tax immediately after removal of petrol subsidy would be insensitive to Nigerians.
“The objective should be that instead of trying to suppress prices, which hasn’t worked for us, it hasn’t worked for any country in the world, not one. Instead of trying to suppress prices, think about how to grow income faster than prices rise,” Oyedele said.
“That’s how you bring prosperity and grow the middle class and that is exactly what we are doing as led by Mr. President himself.
“At the appropriate time, when the economy has stabilizes and income level will be able to accommodate it, those taxes will come. Not because we want to impose taxes,” he added.
In his Tuesday post, the minister reiterated that introducing a fuel tax at this time would be insensitive following removal of petrol subsidy, describing reports that government will introduce the levy when the economy stabilises as “fake news.”
A chieftain of the African Democratic Congress (ADC), and Deputy Director of the Presidential Campaign Council, Chief Dele Momodu, has described former Vice-President Atiku Abubakar as the most nationally formidable and experienced among the leading contenders for the 2027 presidential election.
Momodu said Atiku’s experience at the national level distinguishes him from President Bola Tinubu and former Anambra State Governor, Peter Obi.
He stated this on Wednesday during an interview on Eagle 102.5 FM, Ilese-Ijebu, in Abeokuta.
“If you look at the antecedents of the three major candidates, between Atiku Abubakar and Peter Obi, you will see that Atiku is the most experienced. He has managed our country at the highest level,” he said.
Momodu traced Atiku’s political journey to the 1992 Social Democratic Party (SDP), presidential primary where he contested against late MKO Abiola and stepped down for him.
He said Atiku accepted the outcome without crisis even after he was not picked as Abiola’s running mate, describing it as a mark of true democratic temperament.
“He is the only one who started from around 1992, contested the SDP primary against Abiola and stepped down with uncommon equanimity. He did not make any noise,” Momodu said.
He noted that Atiku was among the founders of the Peoples Democratic Party, PDP, and served as Vice-President from 1999 to 2007.
Comparing Atiku with Obi, Momodu argued that while Obi’s best was demonstrated in Anambra, Atiku’s was at the presidency level managing the national economy.
“Peter Obi has tried his best in Anambra, while Atiku’s best is at the level of vice president controlling the economy of Nigeria. The difference is clear. He has matured in experience and exposure,” he said.
Momodu also said President Tinubu’s experience was largely limited to Lagos.
“What I’m trying to say is that Tinubu’s experience was limited to Lagos, and that is why when he became president, he thought Nigeria was Lagos. And he has found out now that Nigeria is not Lagos,” he said.
He argued that the current economic hardship under the present administration did not show prosperity, insisting Atiku remained better positioned to lead the country.
“Well, we are yet to see that prosperity, and if yesterday would determine today and tomorrow, it is obvious that Tinubu should retire now and let someone else do it,” Momodu added.
DailyPost
