House of Representatives yesterday called on President Muhammadu Buhari to submit proposals for a new revenue allocation formula to the National Assembly for further legislative action.
The resolution followed a motion on ‘Call for a New Revenue Allocation Formula for the Federation’ moved by Hon. Rotimi Agunsoye.
Leading the motion on the floor of the House, Agunsoye stated that the Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC, was the body saddled with the responsibility of fixing the revenue allocation formula for the distribution of funds to the three tiers of government.
He recalled that the formula currently in use for the allocation of funds from the federation account to the three tiers of government was enacted in 1982 and amended in 1992.
The lawmaker cited that Section 6 (1) (b) of the RMAFC Act, Cap R7, Laws of the Federation of Nigeria, 2004, prescribes for a certain committee within the agency to review the allocation formula from time to time, so as to reflect current and contemporary realities.
Agunsoye expressed concern that the effectiveness of the current applicable formula, which was over 30 years, would appear doubtful to reflect the realities facing the financial needs of the three tiers of government.
He further observed that the provision in the 1992 Act, which prescribes for the deduction of various percentages totalling about 7.5 percent and referred to as ‘special fund’ had been adjudged unconstitutional by the Supreme Court.
The parliamentarian also explained that Section 162 (2) of the constitution required the president, on the recommendation of the RMAFC, to submit a proposal for a new revenue allocation formula to the National Assembly for consideration and passage into law.
He, however, emphasised that failure to review the formula in line with contemporary realities poses frequent financial threats and hardships in the fiscal relationship between the three tiers of government.
In his reaction, the House majority leader, Hon. Femi Gbajabiamila commended the sponsor of the motion, but quickly reminded his colleagues that the motion had been dealt with in the seventh House of Representatives.

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