Ex-VON DG expresses support for proposed revenue allocation formula review

Mr Osita Okechukwu, the immediate past Director General of the Voice of Nigeria (VON), has expressed his support for the proposed review of Nigeria’s Revenue Allocation Formula.

He was speaking shortly after Mohammed Shehu, the Chairman of Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) announced the proposal.

Okechukwu, who made this known while addressing our correspondent in Enugu on Tuesday, said reviewing the revenue allocation formula would be a win-win for all.

The former VON boss said the proposed review was long overdue, especially amid the move to also review the Nigerian Constitution.

He called for a reduction in the relatively disproportionate revenue allocation to the Federal Government from 52 per cent to 40 per cent, to guarantee a more balanced federalism.

This, he said, would enhance the progress and prosperity of the citizenry, and ultimately advance the frontiers of grassroots democracy.

He said, “My observation over the last decades informed that the political banditry, ultra-nepotism and tension soaked presidential election in our dear fatherland is largely due to unbalanced federalism.

“An unbalanced federalism is an outlier of do or die struggle of who presides over the huge oil revenue (a.k.a. national cake) at the over centralised Federal Government.

“I agree wholeheartedly with Shehu’s submission that the review of the vertical revenue-sharing formula, which determines how federally collected revenues are shared among the federal, state and local governments has been long overdue.”

He noted that the 33 years old revenue formula “is antithetical to development and retrogressive.”

“It is 52.68 per cent to the Federal Government; 26.72 per cent to states; 20.60 per cent to LGAs; and 4.8 per cent Special Funds.

“One per cent FCT and Ecological Fund; 1.68 per cent Natural Resources and 0.5 per cent Stabilisation Fund, which are fractions that make up the rest,” he said.

Okechukwu proposed a revenue sharing formula of 40 per cent FG; 40 per cent states; 10 per cent LGAs and 10 per cent to the rest.

He added that it was a matter of security and evolving socioeconomic, political and fiscal realities.

The APC chieftain noted that the LGAs’ allocation should be reduced since all genuine efforts made in the last 25 years to retrieve LGAs from the stranglehold of our “emperor governors” had repeatedly failed.

“Even the financial autonomy initiative by President Bola Tinubu, which culminated in the July 11, 2024 Supreme Court landmark judgment has failed woefully.

“It has become a pragmatic imperative to stop chasing shadows,” he said.

He recalled that revenue allocation review exercise in the past had been controversial.

According to him, the effort had been marred by what he described as “hate pandemic of ignorant political bandits masquerading as ethno-religious champions.”

Okechukwu urged divisive elements to sheath their arsenal and acknowledge the gospel truth.

He stressed that abject poverty, grinding hunger, gross unemployment, crisis of inequality and palpable insecurity were still unfortunately plaguing all geopolitical zones.

Okechukwu called on President Tinubu, governors, national and state legislators and patriots to breathe life into the Constitution with the new revenue proposal to enable a balanced federation.