Revenue Formula review: Beware of marauding fraudsters, RMAFC warns states, LGs

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

Mr Nwachukwu Christian, Public Relations Officer of the RMAFC, in a statement, in Abuja, on Monday, urged the lower tiers of government not to allow themselves to be deceived by individuals or groups of people who go round the States and Local Government Areas of the Country with the claim of being official representatives of the Commission, while promising that they could increase their Revenue Allocation at a negotiated percentage.

He quoted the Chairman of the Commission, Engr Elias Mbam to have said that such individuals or groups were not representing the RMAFC and should be treated as criminals.

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

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Engr Mbam disclosed that the Commission was currently carrying out a đnationwide sensitization and advocacy meetings with various stakeholders on the RAF review exercise.

He 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 and confirmed letter personally signed by the Chairman of the Commission.

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

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