Ahead of the review of the revenue sharing formula scheduled to start on Thursday, there are strong indications that state governors may demand 42 per cent of the federal allocation as against the 26.72 per cent they currently get.
The governors are also asking that the share of the Federal Government be slashed from the current 52.68 per cent to 37 per cent, while requesting that the share of local governments be increased from the current 20.60 per cent to 23 per cent in the new formula.
The Chairman, Revenue Mobilisation Allocation and Fiscal Commission, Mr Elias Mbam, had on Tuesday revealed that the commission would set up a committee in the coming week to review the revenue sharing formula for federal, states and local governments due to the current economic realities.
The current revenue sharing formula was designed during the tenure of former President Olusegun Obasanjo, who ruled between 1999 and 2007. Read more