FAAC: Revenue sharing formula May Take New Shape – Mbam

Due to the current economic realities on ground , the Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Elias Mbam, revealed that the revenue sharing formula for Federal, States and Local Governments may take a new shape.

He made this revelation while speaking to journalist shortly after an award ceremony on Tuesday in Abuja .

According to the current revenue allocation formula, the Federal government gets 52.68 per cent, State, 26.72 per cent and Local government 20.60 per cent.

Also, 13 per cent of oil and gas federally collected revenue is returned to the oil-producing states as derivation revenue to compensate for ecological disasters arising from oil production.

While noting that a committee would be set up in the coming weeks to execute this task Mbam said the commission would also push for the diversification of the nation’s revenue for a more sustainable growth and economic development.

“My agenda is to expand the sources of revenue for the federation. I will like to expand the cake that we are sharing so that people will get reasonable quantity.

“I intend to do this through diversification in areas outside oil and gas, and that includes solid minerals, agriculture and manufacturing.

“So, we will encourage states and let them know what is available outside oil and gas so they can develop those aspects of the economy to their own benefit,’’ he said.

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