Masari seeks new revenue allocation formula for states, LGs

Governor Aminu Masari of Katsina State on Tuesday canvassed for increase in federal allocation to states and local governments, insisting that the current revenue allocation formula tilted more in favour of the Federal Government.

He maintained that states and local governments areas have more responsibilities, the development which he stressed, made them to require more percentage from the current revenue formula.

Masari made the declaration when a delegation from the Revenue Mobilisation and Fiscal Commission paid him a courtesy call as part of its members’ sensitization visit to the state.

The governor said, “From 1999 to date, we have not been able to come up with a new Revenue Allocation Formula despite constitutional provision to do so. The formula has become stagnant. It is lopsided. It puts more resources at the centre and less resources for states and local governments.

“The burden and responsibilities of daily needs are at states and local government levels. The Federal Government has various revenue-earning parastatals and some of them do not contribute to the Federation Account but it is the consolidated revenue of the Federal Government and this revenue is not shared.

“The current formula has given the Federal Government over 50% while states and local governments share less than 40%. This is where the people are; this is where the problems are.

“This formula is stale, unfair, unjust and there has to be a change to address realities of today and prepare us for tomorrow.”

A Federal Commissioner at the RMAFC, Kabir Mashi, who led the delegation had earlier told the governor that his members were in Katsina on a sensitization exercise over a possible review of the existing vertical revenue allocation formula.

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