The House of Representatives on Thursday urged President Muhammadu Buhari to urgently submit proposal for a new revenue allocation formular and as a matter of urgency submit to the National Assembly for further legislative action.
This resolution was passed following the adoption of the motion sponsored by Rotimi Agunsoye (APC-Lagos), who noted that failure to review the current revenue sharing allocation formular of 52.68% for Federal Government; 26.72% for States and 20.60% for Local Government Councils.
He said: “Section 6 (1) (b) of the revenue mobilisation allocation and fiscal commission act, Cap. R7, laws of the federation of Nigeria, 2004 prescribes for a certain committee within the agency to review the revenue allocation formula from time to time, to reflect current realities.
“The effectiveness of the current applicable formula which is over 30 years old, would appear doubtful to reflect the realities facing the financial needs of the three tiers of government.”
He said that the provision in the 1992 act which prescribes for the deduction of various percentages totalling about 7.5 percent and also referred to as special fund has been adjudged unconstitutional by the Supreme Court.
“Section 162(2) of the constitution requires the President, on the recommendation of the revenue mobilisation allocation and fiscal commission to submit a proposal for a new revenue allocation formula to the National Assembly for consideration and passage into law, “Agunsoye submitted.
On his part, Femi Gbajabiamila, Majority Leader explained that the call for a new revenue allocation formular should have been addressed by previous assemblies.
Gbajabiamila who cited sections 88 and 89 of the Constitution, maintained that the Parliament has the power to carry out the review of the revenue allocation as provided for in section 162(2).
Speaking against the motion, Tahir Monguno (APC-Borno) noted that as a matter of law, any tier of government who is not satisfied can seek redress in the courts, adding that call for a new revenue allocation formula cannot be done by way of motion.
However, the motion was adopted by the House after it was put to a voice vote by the Speaker Yakubu Dogara.
KEHINDE AKINTOLA
