The House of Representatives yesterday resolved to investigate the actual amounts disbursed to the 36 states and 774 local government areas of the federation from 2012 to 2021 from the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance. It will also test the accuracy of data provided to RMAFC by the 36 states and 774 local government areas of the federation that was used to compute the indices utilized for vertical and horizontal revenue allocation including 13% derivation from 2012 to 2021 and the current nature of maintenance of this data.

The resolution was consequent upon the adoption of a motion sponsored by Rep. Mark Gbillah, at the plenary. Other areas to be determined by the investigation include: “The indices computed for each of the 36 states and 774 local government areas of the federation by RMAFC from 2021 to 2021 that were transmitted to the Accountant General of the Federation for revenue disbursement to the states from 2012 to 2021 including the parameters utilized to compute the indices.

“The indices utilized by the Accountant General of the Federation for revenue disbursement to the 36 states and 774 local government areas of the federation from 2012 to 2021 including details of the actual amounts disbursed to each state for this period. “The allocation principles utilized by RMAFC in the proposal of new vertical allocation formula and consider the efficacy and suitability of the same in line with current and changing realities and the proposed principles for a new horizontal allocation formula. “Total remittance to the federation account by related agencies of the Federal Government from 2012 to 2021, the ‘cost of the collection’ deducted for the entire period, statutory backing for same and utilization from 2012 to 2021; “The violation or otherwise by the Federal Ministry of Finance, CBN and other members of the FAAC in the administration of the federation account considering provisions of Section 162(3) (4)(5) and (7) of the 1999 Constitution (as amended) and report back within 8 weeks for further legislative action.”

Leading debate on the motion, Gbillah said he was “Worried about Nigeria’s current utilization of the same vertical and horizontal revenue allocation formula and allocation principles instituted during a military regime three decades ago in 1992 when 6 states and 185 local government areas were created and Nigeria’s population rose from 88 million to over 200 million, and the current national clamor for restructuring, devolution of powers and true federalism amid the obvious changing realities of insecurity and socio-economic hard-ships across the country contrary to the above mentioned statutory provisions including Section 162(2) of the 1999 Constitution (as amended).

“Also worried that RMAFC’s new proposal to the president in April 2022 for a revenue allocation formula is for vertical revenue allocation alone and is alleged to have utilized the over 30 years old allocation principles and recent data that is inaccurate and unverified with no consideration being made at the moment for the more contentious horizontal allocation formula which determines the actual impact on the lives of Nigerians in the federating units.” He said the formula is also alleged to be currently being implemented with inaccurate and unverified data from which flawed indices are computed and utilized by the Accountant General for revenue disbursement.

According to him, there are other allegations that the actual indices utilized by the Accountant General for revenue disbursement to the states are sometimes at variance with those provided by RMAFC because of inducement from the states. “Also aware that the last time RMAFC claimed to have undertaken a comprehensive review of the vertical and horizontal revenue allocation formula, which entailed collection and verification of data from the 36 states and 774 local government areas of the federation was in 2012, which exercise was fraught with speculations about the accuracy and comprehensiveness of the exercise” The motion was unanimously adopted at the plenary presided over by the Deputy Speaker, Hon. Ahmed Idris Wase. (New Telegraph)

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