Federal Government to reduce share of revenue allocation reduced by 3.33 per cent if new revenue-sharing formula proposed gets approval.
Written by News Room on April 8, 2022
The Federal Government will have its share of revenue allocation reduced by 3.33 per cent if the new revenue-sharing formula proposed by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) gets approval.
In the proposal, the Federal Government will take 45.17 per cent; the States Government, 29.79 per cent and the Local Government councils, 21.04 per cent.
While the Federal Government will shed 3.33 per cent, States and local governments have their share increased by 3.07 per cent and 4.4 per cent, respectively.
Under the current sharing arrangement, the Federal Government takes 52.68 per cent of the revenue share, States Governments get 26.72 per cent, while Local Governments get 20.6 per cent.
The development is coming on the heels of the review of the current revenue sharing formula by RMAFC, which commenced last June.