The President Muhammadu Buhari regime says it will set up a committee to review the revenue sharing formula for federal, state and local governments due to current economic realities.
The Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Elias Mbam, told journalists in Abuja on Tuesday.
According to him, in the new sharing formula states and local governments are expected to get more money.
In the current revenue allocation formula, the federal government gets 52.68 percent, State, 26.72 percent and local government 20.60 percent.
Also, 13 percent of oil and gas federally-collected revenue is returned to the oil-producing states as derivation revenue to compensate for ecological disasters arising from oil production.
The RMAFC chairman said the commission plans to constitute a standing committee by next week to review the revenue sharing formula and that the commission would also push for the diversification of the nation’s revenue for more sustainable growth and economic development.
“My agenda is to expand the sources of revenue for the federation. I will like to expand the cake that we are sharing so that people will get a reasonable quantity. I intend to do this through diversification in areas outside oil and gas, and that includes solid minerals, agriculture, and manufacturing.
“So, we will encourage states and let them know what is available outside oil and gas so they can develop those aspects of the economy to their own benefit,’’ he said.