Rights group, the Civil Liberties Organisation (CLO), Akwa Ibom State branch, has proposed a new revenue sharing formula in which the federal government gets only 15 per cent from the Federation Account, the least among the three tiers of government.
The CLO Chairman in Akwa Ibom State, Franklyn Isong, said the federating states should get the largest share of 50 per cent, while 774 local governments in the country should take 35 per cent.
The group called for a constitutional amendment to “decongest” the Exclusive Legislative List, such that the federal government focuses on defence and foreign affairs.
Under the current sharing formula, the federal government takes 52.68 per cent of the revenue shared, states get 26.72 per cent, while local governments get 20.60 per cent.
Mr Isong said the existing formula prepared 29 years ago by the military has become “outdated”.
“The existing revenue sharing formula is outdated and needed a review,” Mr Isong said on Thursday in his presentation at an Interactive Meeting of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) with the Akwa Ibom State Government, in Uyo, Akwa Ibom State.
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Mr Isong said the federating states should be given the constitutional power over mines and minerals, including oil fields, oil mining, geological surveys and natural gas within their boundaries, and that they should be made to pay 10 per cent of revenue accruing from those resources as tax to the federal government.
RMAFC is currently organising interactive meetings with state governments on a new revenue sharing formula which should take effect in December.
Before the interactive meeting, the RMAFC team met with the Governor of Akwa Ibom State, Udom Emmanuel at Government House, Uyo, where the governor also called for the upward review of revenue to states in order to promote economic growth and enhance industrialisation.
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