The Minister of Nigeria’s Federal Capital Territory, FCT, Malam Muhammad Bello has called for a new revenue sharing formula that is fair and equitable, considering the roles being played by the city in national development.
Bello stated this during an advocacy and sensitization meeting on the review of the existing revenue allocation formula where he explained that there was need for a special revenue status for FCT to meet up with its infrastructure quest.
The minister who was represented by the Director of Human Resources Management, Bashir Mohammed said with increased revenue formula more quality projects will be executed.
“FCT needs special revenue package to carry out more projects that will have direct impact on the residents, there are ongoing projects that need chunk amount of money, so there is need for additional budget.
In FCT, there are issues of compensation, abandoned and ongoing projects, so the present allocation is inadequate.
We want a revenue formula that enhances the capacity to deliver high-quality services and dividends of democracy to Nigerians” he said.
According to him, the review of the current formula is long overdue, as the prosperity of a capital territory directly or indirectly has its multiplying effect on the entire country’s development.
In his address, the commissioner that represents FCT at Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Tanko Abari lauded FCT minister for organizing the meeting.
He said RMAFC began the process of reviewing the subsisting vertical revenue allocation formula in line with changing realities as the last review was done in 1992.
He enjoined stakeholders to participate actively and effectively as the commission would take all views and recommendations into consideration.
In the current sharing arrangement, the federal government (including special funds) is entitled to 52.
68 percent while state governments get 26.
72 percent and LGAs receive 20.
6 percent while FCT gets 1%.
FCT Minister advocates for review of Revenue Sharing Formula