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Wike Faults Revenue Sharing Formula, Demands Increased Allocation to States

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5 years ago

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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

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UK PM Burnham Unveils 10-Year Plan, Begins Cabinet Overhaul

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16 hours ago

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July 21, 2026

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The new British Prime Minister, Andy Burnham, on Monday, unveiled a 10-year plan to tackle the country’s economic and social challenges as he began reshaping his government, with Chancellor Rachel Reeves among senior ministers leaving the Cabinet.

In his first speech outside 10 Downing Street, Burnham said his government would introduce measures to ease the cost-of-living crisis, end rough sleeping, build more council homes and devolve more powers away from Westminster.

“This moment will be a circuit breaker for Britain,” Burnham said, adding that details of the government’s cost-of-living package and how it would be funded would be announced from Tuesday.

According to the BBC, Reeves announced on X that she was stepping down as Chancellor of the Exchequer, describing it as “the privilege of my life” to have served in the role. The broadcaster reported that Burnham had offered her another senior cabinet position, but she declined.

The cabinet reshuffle also saw Foreign Secretary, David Lammy, Housing Secretary, Steve Reed and Business Secretary, Peter Kyle leave government as Burnham assembled his own team.

Speaking to reporters after his Downing Street address, Burnham said he would examine the tax-free personal allowance ahead of his first Budget in the autumn but acknowledged that raising the threshold would have significant fiscal implications.

He also pledged to reform England’s social care system, saying he did not want to leave office without fixing a problem that had persisted for decades, while reaffirming his commitment to existing fiscal rules.

The BBC also reported that Burnham held his first conversation with a foreign leader after taking office, speaking with U.S. President Donald Trump.

The resignation of the outgoing Prime Minister Keir Starmer saying he was leaving office “with good grace” and “a smile.”

Burnham is expected to continue announcing appointments to his new Cabinet as his administration takes shape, according to the BBC.

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Finance Minister Oyedele Defends Nigeria’s Rising Debt

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16 hours ago

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July 21, 2026

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Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has clarified the sharp increase in Nigeria’s public debt.

Speaking before the Senate Committee on Finance on the state of the nation’s economy on Monday, Oyedele attributed the increase to naira depreciation and accounting adjustments rather than fresh borrowing by the Bola Tinubu administration.

Oyedele was responding to questions from the senator representing Kebbi Central, Adamu Aliero, over claims that the current administration had borrowed about N80 trillion in addition to the N75 trillion public debt it inherited.

According to the minister, comparing the country’s debt stock at the start of the administration with the current figure without accounting for exchange rate movements created a misleading impression.

“When this administration came into office, public debt was around N75 trillion. Many people simply compare that figure with today’s debt stock and conclude that this government has borrowed massively.

“However, it is important to note that, following the reforms and the depreciation of the naira, the foreign currency component of our public debt had to be revalued because Nigeria reports its debt in Naira. That accounting adjustment alone added more than N40 trillion to the public debt figure,” he said.

He added that the securitisation of the Ways and Means advances inherited from the previous administration also contributed significantly to the increase in the debt stock.

The minister further said that much of the government’s domestic borrowing was used to refinance existing debt rather than accumulate new obligations.

According to him, the Tinubu administration had adopted a prudent borrowing strategy focused on infrastructure and long-term economic growth.

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ADC Tells Tinubu to Resign As World Bank Reveals 139million Nigerians Live in Poverty

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2 days ago

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July 20, 2026

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The African Democratic Congress (ADC) on Saturday asked President Bola Ahmed Tinubu to resign rather than seek re-election, asserting that the World Bank’s recent report showing that 139 million Nigerians live below the poverty line is his scorecard.

The ADC, in a statement by its spokesperson, Bolaji Abdullahi, said the World Bank’s report, which also estimated that 17 million Nigerians are at risk of starvation, was “disturbing.”

“The evidence of 139 million people living in poverty and 17 million at risk of starvation is President Tinubu’s scorecard,” the party said. “On account of this catastrophic failure alone, President Tinubu should be contemplating resigning from office rather than seeking re-election.”

It decried that the “catastrophic” situation was occasioned by the Tinubu administration’s policies, which it said, “have favoured money over people and statistics over survival.”

The opposition party maintained that the economic growth Mr Tinubu’s government has repeatedly boasted of as a result of its economic reforms is “meaningless” if the livelihoods of people at the grassroots have yet to improve since 2023, when he assumed office.

“Instead of changing course, the government has stubbornly stuck with its ruinous economic policies and even continues to market recklessness as courage and wickedness as ‘necessary pains.’

“However, three years down the line, it is now clear that the chicken has come home to roost,” the ADC said.

According to the party, Nigeria desperately needs a leader who truly cares about citizens’ well-being and understands that economic reforms should improve citizens’ lives, not worsen their misery.

“A president whose government is not openly feasting while asking the people to continue fasting. A government that does not wallow in profligacy while handing the people palliatives,” it added.

The party condemned the ruling APC’s social intervention programmes aimed at cushioning the effects of its economic policies, adding, “Poverty cannot be defeated through palliatives.”

The ADC pledged that if elected in 2027, it would tackle the root causes of hunger by reducing energy costs, enhancing food production, and ensuring that farmers returned to their farmlands.

It also vowed to rehabilitate the 264 abandoned dams, improve access to fertilisers and quality seeds, and invest in storage facilities.

According to the party, transportation, waste, and food prices would be reduced while creating productive jobs.

“Hunger cannot be separated from poverty, education, or healthcare. That is why an ADC government will prioritise nutrition, primary healthcare, quality basic education, and skills development because no nation can build a prosperous economy while millions of its children are hungry, out of school, or cannot read simple texts,” the party said.

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