The Anambra State Governor, Willie Obiano, has proposed a revenue-sharing formula of 50, 30, and 20 percents for state, local and federal governments, respectively.
The governor stated this on Wednesday while declaring open the sensitisation exercise for a new revenue allocation formula for the country held in Awka, the state capital.
Obiano who was represented by his Deputy, Dr Nkem Okeke, said states should get the lion’s share of allocation because they shouldered the highest degree responsibilities among the three- tiers of government.
He said: “Issues of security, health care, education and infrastructure in the states require enormous resources and funding.
The existing revenue formula of 26 percent collectable by states is grossly inadequate.”
Earlier a Federal Commissioner, in the Revenue Mobilisation Allocation and Fiscal Commission, Chima Okafor, said the team was given a specific constitutional mandate to review from time to time the revenue allocation formula and principles in operation.
This he said was to ensure conformity with changing realities, “provided that the revenue formula which had been accepted by an Act of the National Assembly shall remain in force for a period of not less than five years from the date of commencement of the Act”.
It is in compliance with that constitutional provision and in view of the changing socio-economic and political dynamics of the nation that prompted the commission to commence full-scale engagement of representatives of various stakeholders and the people nationwide in the process of fashioning a new revenue sharing formula for the country.