Revenue allocation: Kano seeks special status as northwest demands 60% for states, LGs

Stakeholders from the northwest zone of the country have demanded an increased share of Revenue Allocation in favour of states and local government areas.

They proposed a 60 per cent allocation for the two arms of government while the Federal Government takes 40 per cent.

The governments of Kaduna, Kano, Katsina, Sokoto, Jigawa, Kebbi, and Zamfara made the proposal in their separate presentations at a zonal public hearing on the review of the current Revenue Allocation Formula organised by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) held on Monday in Kaduna State.

Governor Nasir El-Rufai of Kaduna, represented by his deputy, Hadiza Balarabe, lamented that the Federal Government controls so many powers and resources similar to those exercised in unitary systems, while it does little to cater for the majority of the population.

He, however, stressed the need for a new revenue-sharing formula that would be fair and equitable for the benefit of the people at the grassroots.

Stating that the current revenue sharing formula was long overdue, the governor proposed a revenue formula that would enhance the capacity to deliver high-quality services and good governance to the citizens.

In his presentation, the Commissioner for Finance and Budget in Jigawa, Ibrahim Babangida, said states and local councils should take lion shares of the allocation for rapid development.

While he proposed 44 per cent for the federal government, as well as 34 per cent and 22 per cent for states and local governments respectively, the Secretary to the Kano State government, Usman Alhaji, demanded 41 per cent and 34 per cent for the Federal Government and states.

Alhaji also demanded that Kano should be accorded a special status due to what he described as the huge human population of the state.

The Commissioner for Budget and Economic Planning in Katsina, Farouk Jobe, shared a similar view with other speakers at the event.

In his opening remark, Chairman RMFAC, Elias Mbam, explained that the public hearing was organised for the stakeholders from the zone to get their inputs on what they think should be the best sharing formula.

RMFAC is mandated by the constitution to review from time to time, the country’s revenue allocation for the three tiers of government to ensure conformity with changing realities.

The last time the revenue sharing formula was reviewed was in 1992, and the Federal Government currently takes 52.68 per cent of the allocation.

On the other hand, the 36 states and the Federal Capital Territory take 26.72 per cent while the local governments make do with 20.60 per cent.