Revenue Formula Review: RMAFC Alerts States, LGs to Activities of Fraudsters

Pat Stevens/

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has warned States and Local Governments of the activities of fraudsters who are soliciting financial inducement to facilitate increase in their revenue allocations from the federal purse.

Public Relations Officer of the RMAFC, Nwachukwu Christian, in a statement, yesterday, urged states and local government not to allow themselves to be deceived by individuals or groups of people who go round with the claim of being representatives of the commission and promising that they could facilitate increase in their revenue allocation at a negotiated percentage.

The statement quotes the chairman of the commission, Mr Elias Mbam, as saying that such individuals or groups were not representing the RMAFC and should be treated as criminals.

Mbam said that the commission’s current review of the existing Revenue Allocation Formula (RAF), would be based purely on established indices and extant law which cannot be changed or increased by anybody.

He disclosed that the commission is currently carrying out a nationwide sensitisation and advocacy meetings with various stakeholders on the RAF review exercise.

He therefore advised the states and local governments not to carry out any business with any person claiming to be representing the commission in any form without a written confirmation letter personally signed by the commission’s chairman.

Under the current formula, the federal government takes 52.68 percent of the Federation Account revenue; State Governments receive 26.72 percent; while the 774 Local Governments take 20.60 percent.

On the other hand, state governments take 50 percent of the Value Added Tax (VAT) proceeds, while the LGs and federal government receive 35 percent and 15 percent respectively.