New revenue formula to ensure equity, sustainable development, says RMAFC

New revenue formula to ensure equity, sustainable development, says RMAFC

Tada Jutha, Maiduguri

The Federal Commissioner, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Alhaji Adamu Yuguda Dibal has said that the 1999 Constitution empowers the Commission to regularly review the revenue allocation formula.

According to him, in view of the changing socio-economic and political dynamics in the nation; the commission has engaged stakeholders to fashion a new sharing formula.

Speaking yesterday at the National Sensitisation Revenue Sharing (NSRS) formula in Maiduguri, the Borno state capital, he disclosed: “Over the years there had been agitations of the people to review the revenue sharing formula.

He said the review was to fulfil the collective aspirations of the people for sustainable development.

He noted that the sensitization; was to enlist the interests of stakeholders to get informed inputs for the revenue sharing template.

The template, according to him, was to assist the commission with a fair, just and equitable revenue sharing formula.

He assured that the new revenue formula will meet the yearnings of the three tiers of government.

While contributing to the revenue sharing formula of RMAFC, Governor Babagana Zulum said that the interface with stakeholders will provide an opportunity to diversify the state’s internally generated revenue (IGR).

He announced that in the last six months, there was an increase of 24 per cent of IGR.

Zulum, who was represented by the Chief of Staff, Prof. Isa Marte, disclosed: “This is not unconnected with our several proactive measures introduced since May 2019.”

He said the measures have minimized the leakages that existed over the years; before adopting the Treasury Single Account (TSA) by the Ministries, Departments and Agencies (MDAs).

He added that the rebranding of the Borno State Geographic Information Service (BOGIS) has also drastically increased the IGR.

He noted that the new revenue formula could be based on the collective interface with the stakeholders,

On how to enhance IGR, he said: “The Borno State Board of Internal Revenue Service has been repositioned to boost revenues in the state,”

He said in line with Federal Government policy on TSA, the state government has keyed into the policy by automating all tax administration.

“This is order to improve the state’s economy, despite the 12-year Boko Haram insurgency that claimed many lives and property,” he said.

He added that the process of revenue collection and management has also been resuscitated to prevent leakages and wastages for prudent management of resources.

On revenue targets for 2021, he said: “With the adopted measures the state government’s IGR hits N9.84 billion in the first half of 2021,” noting that it was the highest revenues ever collected in the history of Borno.

While citing the Lagos State Government, he said that during the Bola Tinubu administration, the highest monthly IGR was N1 billion.

He noted that the monthly revenues of the state also increased to N34 billion within 21 years.

“There is the need for the Federal Government to consider an upward review of the revenue formula for Borno state,” he said, adding that the IGR is one of the parameters in the revenue sharing formula.

New revenue formula to ensure equity, sustainable development, says RMAFC