NGF States Reason Governors Are Pushing for Revised Revenue Formula

Nigeria Governors Forum (NGF) has said that Governors are pushing for a review of the revenue allocation formula because states bear heavier burdens.

This was stated that the NGF Chairman, Kayode Fayemi in an interview with The Nation.

The Ekiti Governor said states no longer want handouts from the Federal Government but request to be allocated what should be their entitlements.

While noting that the demand for a new formula was not informed by the challenges of paying the N30,000 minimum wage, Fayemi added that since the Federal and state governments have separate revenue formula preferences, it is the duty of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to make a proposal for consideration.

Following his remarks at the Aso Villa after a meeting with President Muhammadu Buhari, Fayemi said the NGF believes the revenue formula should change in view of the realities on the ground.

“States are bearing more responsibilities, including funding primary/ basic education, primary health care and even reconstructing roads which are called federal roads of which refunds were yet to be made.

“We cannot have a tyranny of unfunded mandate in federating units. We think the mandate should be funded.”

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Fayemi further stated that the rights of states as equal stakeholders should be protected and guaranteed as they are contributors to the nation’s revenue.

“We are not just takers. States do not want handout, they want what they are entitled to.

“So, it is about our federalism. It is about the federating units. We need to look at the responsibility each unit has been given and the resources to be allocated to each unit. It shouldn’t be about giving handout to states; they want what they are entitled to.

“We want new revenue formula because fundamentally, it is the right thing to do.”

When asked to be specific on the new revenue formula desired by the governors, the NGF chairman said the states, the Federal Government, and other stakeholders have their preferences and it is not for them to dictate.

Fayemi also clarified that the call for a new formula has no connection with the payment of the new minimum wage by states, adding that negotiations are ongoing in the state and progress is being made.

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“It is about the responsibility of the federating units and corresponding resources.

“This has nothing to do with President Muhammadu Buhari, the agitation for new revenue formula has been on since the administration of ex-President Olusegun Obasanjo.

“In fairness, the President has been more sympathetic to states with bailout funds. But he is dealing with a structure that he has been bequeathed.”