CLO proposes a 15 percent allocation of revenues to the federal government
A rights group, the Civil Liberties Organization (CLO), a branch of Akwa Ibom state, has proposed a new revenue-sharing formula in which the federal government receives only 15% of the Federation, the least among the three levels of government.
CLO president in Akwa Ibom state Franklyn Isong said the federated states are expected to get the largest 50 percent share, while the country’s 774 local governments are expected to take 35 percent.
The group called for a constitutional amendment to “decongest” the exclusive legislative list, so that the federal government can focus on defense and foreign affairs.
Under the current sharing formula, the federal government takes 52.68 percent of the shared revenue, states receive 26.72 percent, while local governments receive 20.60 percent.
Mr Isong said the existing formula prepared 29 years ago by the military had become “obsolete”.
“The existing formula for income sharing is outdated and in need of revision,” Isong said Thursday in his presentation at an interactive meeting of the Income Mobilization, Allocation and Taxation Commission (RMAFC) with the government of Akwa Ibom State, in Uyo, Akwa Ibom State.
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Mr. Isong said the federated states should be given constitutional authority over mines and minerals, including oil fields, petroleum mines, geological surveys and natural gas within their borders, and that they should be obliged to pay 10% of the income from these resources. as a tax to the federal government.
The RMAFC is currently holding interactive meetings with state governments on a new revenue sharing formula that is expected to take effect in December.
Prior to the interactive meeting, the RMAFC team met with Akwa Ibom State Governor Udom Emmanuel at Government House, Uyo, where the governor also called for an upward revision of state revenues to promote economic growth and strengthen industrialization.
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