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A Foundation member of the All Progressive Congress (APC), Mr Osita Okechukwu, says that the proposed review of revenue allocation formula is a “Win-Win-Balanced Federalism”.
Okechukwu said this in Enugu on Tuesday while addressing journalists a few hours after Mohammed Shehu, the Chairman of Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) announced plans to review the Revenue Allocation Formula.
He said that he was totally in support for the proposed review of the existing Revenue Allocation Formula especially now that the Constitution is being altered, adding “it is long overdue”.
Okechukwu, a former Director General of Voice of Nigeria (VON),
canvassed for the reduction in the huge extant revenue allocation to Federal Government from 52 per cent to 40 per cent, to guarantee ultimate balanced federalism.
This, he said, would enhance the progress and prosperity of our dear citizenry, albeit ultimately advancing the frontiers of our grassroots democracy.
He said, “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.
“And unbalanced federalism is an outlier of do or die struggle of who presides over the huge Oil Revenue (a.k.a. national cake) at the over centralised Federal Government.
“And 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.”
Okechukwu said that the 33 years old revenue formula – which is 52.68 per cent Federal Government; 26.72 per cent States; 20.60 per cent LGAs; and 4.8 per cent Special Funds.
“One per cent FCT and Ecological Fund; 1.68 per cent Natural Resources and 0.5 per cent Stabilisation Fund, which are fractions that make up the rest – is antithetical to development and retrogressive,” he said.
Okechukwu submitted that as a matter of security and evolving socioeconomic, political and fiscal realities, he proposes revenue formula of – 40 per cent FG; 40 per cent States; 10 per cent LGAs and 10 per cent to the rest.
He noted that the LGAs’ allocation should be reduced since all genuine efforts made in the last 25 years to retrieve LGAs from the stranglehold of our “emperor governors” had repeated 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 pragmatic imperative to stop chasing shadows,” he said.
He recalled that 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, the governors, national and state legislators and patriots to breathe life into the Constitution with this Win-Win-Balanced Federalism move, especially now that we altering it.
