After missing the 2021 deadline, the Revenue Mobilization Allocation and Fiscal Commission has finally handed the President Muhammadu Buhari with the report of the review of the vertical revenue allocation formula.
The commission's Chairman, Elias Mbam, stated last year that the report would be given to the president by December 31, 2021. The commission, on the other hand, missed the deadline.
The new formula calls for 45.17 percent for FG, 29.79 percent for states, and 21.04 percent for local government areas.
The suggested vertical income allocation methodology recommended 45.17 percent for the federal government, 29.79 percent for state governments, and 21.04 percent for local governments, according to the commission's chairman.
He added the commission's study proposed 1.0 percent for ecology, 0.5 percent for stabilization, 1.3 percent for natural resource development, and 1.2 percent for the FCT under Special Funds.
Former President Olusegun Obasanjo devised the old revenue formula during his presidency.
The federal government receives 52.68 percent, the 36 states receive 26.72 percent, and the 774 local government entities in the country receive 20.60 percent each month under the new system.©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.