FG Proposes 3% Increase in LG Allocation
Federal government has proposed a review of the national revenue sharing formula that will possibly result in over 3 per cent cut from both the federal and state governments to add to that of Local Government Areas.
The central government is proposing that the current position be changed in favour of LGAs to enable inclusive growth.
“As an interim and immediate measure, the federal government is therefore proposing the following: Federal Government 50.65%; State Government 25.62 %; Local Government 23.73% and Derivation Allocation 13%,” Secretary to the Government of the Federation, Boss Mustapha said.
The SGF said the position of the federal government is a reflection of President Muhammadu Buhari’s commitment to ensuring resources for development get to the poorest of the poor in our rural communities, imperative to incorporate local communities in our security architecture as well enhancing equitable and inclusive national development.
Mustapha who was represented by the permanent secretary, political and economic affairs in his office, Andrew David Adejoh, made the remarks at a public hearing on the review of the existing vertical revenue allocation formula.
The present vertical Revenue Allocation Formula is: Federal Government 52.68%; State Governments 26.72%; Local Governments 20.60% and Derivation Formula 13%.
He said for Nigeria to have an endearing vertical review of the present revenue allocation formula, it must first agree on the responsibilities to be carried out by all the tiers of government.
