Federal Government Has Announced How LG and State Government Revenue Allocation Will be Shared.
The federal government says it will set up a committee in the coming week to review the revenue sharing formula for Federal, States and Local Governments due to current economic situations.
The statement was made by the Chairman Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Elias Mbam in Abuja on Tuesday, August 6, shortly after he received an award of excellence from the Nigeria Civil Service Union.
Mr Mbam said that the formula will favour Local and State Government most because they will get more funds to expand and increase the scope of revenue collection.
Currently, in the revenue allocation formula, Federal Government gets 52.68%, State, 26.72% and Local Government 20.60%.
13% of oil and gas revenue is returned to the Oil Producing States as compensation for ecological disasters caused by oil production.
Federal, States and Local Government areas shared N762.5 billion as Federal allocation for the month of June.
However, Mbam said the commission will also push for the diversification of the nation’s revenue for sustainability and economic growth.
Mr. Mbam said, FG has resolved to review revenue formula for Federal, States and Local Governments According to Mbam, States and Local Governments are expected to get more money.
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