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Wike Seeks Upward Review Of Revenue Allocation To States

Published

4 years ago

October 8, 2021

Rivers State Governor, Chief Nyesom Wike, has urged the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) to reduce revenue accruable to the Federal Government from the federation account to 40percent, and increase those of states and local government councils to 40 and 20per cent, respectively.
The governor said the current revenue sharing formula that allows the Federal Government to take 52.68percent, and the states and local government councils to take 26.72percent and 20.60percent, respectively was unacceptable.
Wike made the assertion when members of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) led by its Chairman, Chief Elisa Mbam paid him a courtesy call at the Government House, Port Harcourt, last Wednesday.
The governor observed that despite the changes that the country had been through in the past 29 years, it was regrettable that it has continued to use the 1992 revenue formula prescribed by the military.
Wike faulted the use of 1992 population figure, public school enrolment and public hospital bed spaces, land mass as formula for allocation of revenue.
He argued that a more equitable formula should also take into cognisance current population figure as well enrolment in private schools and number of bed spaces in private hospitals.
“Using the same formular of 1992 as a basis for revenue allocation in this country is so unfortunate. And to worsen the situation under a democratic dispensation, since 1999 till now, our country has not reviewed the revenue allocation formula.”
Wike urged the commission to reduce the revenue accruable to the Federal Government to 40percent because it has abdicated its responsibility of providing security and basic infrastructure to the federating states.
“You people should reduce the percentage of the Federal Government. Give them 40percent. Give the states 40percent, give local government 20percent. In that way, most of the responsibilities that belong to the Federal Government will now be taken away and given to the states.”
He noted that the current centralised federal system in operation in Nigeria has made it impossible for most states to look inwards and harness their potentials.
According to him, the country’s vast resources, will continue to amount to nothing if the states are not allowed to use their resources to drive and determine their development.
“We cannot talk about operating a federal system without having a fiscal federalism. It is practically impossible. Let’s cancel that word federalism, we are operating a unitary system. But you cannot be saying we are operating a federal system, at the same time operating a centralised system.”
The governor expressed reservation about the willingness of the present Federal Government to implement the recommendations of the revenue mobilisation and fiscal commission, which is currently holding public hearing on new revenue sharing formula across the six geopolitical zones.
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Chairman, Chief Elisa Mbam, explained that one of the major mandate of the commission is to review from time to time the revenue allocation formula to conform with changing realities.
Mbam explained that it has become necessary to review the current formula because the last review was done in 1992.
He observed that there has been a lot of changes in the political and socio-economic situation of the country.
According to him, the data that will be collated from the states will help the commission to arrive at a fair revenue formula.
“We believe that what we will get from states will help us to come up with a revenue formula that will be fair, just and equitable.”
He commended Wike for his developmental stride, and urged other states to emulate Rivers State.
Later during the South-South Zonal Public Hearing, the State Chief Executive, Chief Nyesom Wike, restated that the present revenue allocation formula cannot meet the present realities of our dear nation and the socio-economic development of all levels of Government.
Wike made this assertion during the South–South Zonal Public Hearing on the Review of the Current Revenue Allocation Formula at Hotel Presidential in Port Harcourt, yesterday.
Speaking through his Deputy, Dr. Ipalibo Harry Banigo, Wike said “it is very clear to anyone who cares to know that the Federal Government is overburdened and overloaded and cannot efficiently deliver a federal system as we envisage it in our Federation”.
According to the governor, the states needs to be encouraged to be able to build up their own potentials, adding that It was all part of encouraging inclusiveness and encouraging a sense of belonging.
The governor further said “in Rivers State, we are building 10 overhead bridges because we envisage the future, it is futuristic, we have a city with so much traffic and these 10 overhead bridges are a must, apart from the infrastructure that is going on in all our communities and 23 local government areas.”
Wike, who noted that bridges, jetties and educational Institutions all fall under the laps of the states, called for the reduction of the allocation of the Federal Government and an increase of the allocation to the states and local governments, stressing that this is what equity is all about.
Wike, who expressed delight that the commission had gone round and done sensitization, collected various data and indices, expressed the hope that all these would not be thrown away at the end of the day, and prayed that the feelings and aspirations of the Nigerians of today would garner their efforts and bring it to fruition.
In his address, the Chairman, Revenue Mobilization Allocation and Fiscal Commission, Engr. Elias Mbam, disclosed that the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) by virtue of Paragraph 32(b) Part 1 of the Third Schedule to the 1999 Constitution of the Federal Republic of Nigeria (As Amended) is empowered “to review from time to time the Revenue Allocation Formula and Principles in operation to ensure conformity with changing realities, provided that any Revenue Formula which had been accepted by an Act of the National Assembly shall remain in force for a period of not less than five years from the date of commencement of the Act”.
According to him, the commission has embarked on the process of reviewing the existing Vertical Revenue Allocation Formula, adding that the review became necessary because a lot of socio- economic and political changes have taken place since the last review in 1992.

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RSG Commits To Workers’ Welfare …. Calls For Sustained Govt, Labour Partnership

Published

3 days ago

May 2, 2025

The Tide

The Administrator of Rivers State, Retired Vice Admiral Ibok-Ete Ekwe Ibas, has assured the commitment of Rivers State government to workers’s welfare and industrial harmony in Rivers State.

The Sole Administrator gave the assurance after meeting with leadership of organized labour unions at the Government House, Port Harcourt on Wednesday.

Ibas reaffirmed government’s policy of prompt payment of salaries and pensions to workers and retirees, stating that all local government employees are not receiving the approved minimum wage.

He disclosed that approval has been given for payment of newly employed staff at Rivers State University Teaching Hospital and the Judiciary, while medical workers in Local Government Areas will now receive correct wages.

Ibas explained that, Government is reviewing implementation challenges of the Contributory Pension Scheme ahead of the July 2025 deadline, adding that Intervention buses have been reintroduced to ease workers’ transportation ,with plans to expand the fleet.

He said specialized leadership training for top civil servants will commence within two weeks, while due consideration is being given to implementing the N32,000 consequential adjustment for pensioners and clearing outstanding gratuities.

Ibas commended Rivers State workers for their dedication to service and called for sustained partnership with labour unions to maintain industrial peace.

“This administration recognizes workers as critical partners in development. We remain committed to addressing your legitimate concerns within available resources,” he stated.

The State NLC Chairman, Comrade Alex Agwanwor, thanked the Administrator for the steps taken so far with regard to workers welfare while appreciating his disposition towards alleviating the transportation problem faced by workers.

He also expressed appreciation for the government’s openness to dialogue and pledged continued cooperation towards achieving mutual goals.

The Rivers State Government assured all workers of its unwavering commitment to their welfare and called for continued dedication to service delivery for the collective progress of our dear State.

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Labour Unions In Rivers Call For Improved Standard Living For Workers

Published

4 days ago

May 2, 2025

The Tide

The Nigeria Labour Congress (NLC), Rivers Council, has called for policies that will improve the economic situation of the country in order to ensure enhanced living standard for workers.

The State Chairman, Mr Alex Agwanwor, made the remark on behalf of the unions affiliated to Labour Congress during the 2025 workers day celebration in Port Harcourt, yesterday.

Agwanwor highlighted the demands of the Unions which included the immediate payment of pension arrears, implementation of the N32,000 minimum wage for pensioners, and payment of gratuities and death benefits without further delay.

“We are calling for the regulation and protection of e-hailing drivers, implementation of increments and promotions, and resolution of long-standing issues in the polytechnic sector,” he said.

Agwanwor on behalf of the unions appealed to President Bola Tinubu to reinstate the democratically elected Governor, Deputy Governor, and members of the Rivers State House of Assembly.

He stressed the importance of democratic governance and good working relationship with elected representatives.

According to him, the unions expressed disappointment over the imposition of taxes, increase in electricity tariff, and high cost of goods and services, which have further worsened the plight of workers.

“We urge the federal government to take measures to alleviate the suffering of citizens,” he said.

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Tinubu committed to unlocking Nigeria’s potential – Shettima

Published

4 days ago

May 1, 2025

The Tide

Vice-President Kashim Shettima says President Bola Tinubu is committed to unlocking Nigeria’s full potential and position the country as a leading force on the African continent.

Shettima stated this when he hosted a delegation from the Hertie School of Governance, Berlin, led by its Senior Fellow, Dr Rolf Alter, at the Presidential Villa in Abuja last Wednesday.

He said Nigeria was actively seeking expertise from the global best institutions to enhance policy formulation and implementation, particularly in human capital development.

The Vice-President noted that President Tinubu was determined to elevate Nigeria to its rightful position as a leading force in Africa.

“The current crop of leadership in Nigeria under President Bola Ahmed Tinubu is ready and willing to unleash the full potential of the Nigerian nation on the African continent.

” We are laying the groundwork through strategic reforms, and at the heart of it, is human capital development.”

He described the Hertie School as a valuable partner in the journey.

According to him, Hertie School of Governance, Berlin, has track record and institutional knowledge to add value to our policy formulation and delivery, especially in this disruptive age.

Shettima reiterated the government’s priority on upskilling Nigerians, saying ” skills are very important, and with our Human Capital Development (HCD) 2.0 programme.

“We are in a position to unleash the full potential of the Nigerian people by enhancing their capital skills.”

The Vice-President acknowledged the vital support of international development partners in that effort.

” I want to thank the World Bank, the European Union, the Bill and Melinda Gates Foundation, and all our partners in that drive to add value to the Nigerian nation,” he maintained.

The Vice-President said human capital development was both an economic imperative and a social necessity.

Shettima assured the delegation of the government’s readiness to deepen cooperation.

” We need the skills and the capacity from your school. The world is now knowledge-driven.

“I wish to implore you to have a very warm and robust partnership with the government and people of Nigeria.”

Shettima further explained recent economic decisions of the government, including fuel subsidy removal and foreign exchange reforms.

“The removal of fuel subsidy, the unification of the exchange rate regime and the revolution in the energy sector are all painful processes, but at the end of the day, the Nigerian people will laugh last.

“President Tinubu is a very modern leader who is willing to take far-reaching, courageous decisions to reposition the Nigerian economy,” he added.

Earlier, Alter, congratulated the Tinubu administration for the successful launch and implementation of the Human Capital Development (HCD) strategy.

The group leader described the development as ambitious and targeted towards the improvement of the lives of the citizens.

He expressed satisfaction with the outcome of his engagements since arriving in the country.

He applauded the zeal, commitment, energy and goodwill observed among stakeholders in the implementation of Nigeria’s HCD programme.

Alter said the Hertie School of Governance would work closely with authorities in Nigeria across different levels to deliver programmes specifically designed to address the unique needs of the country.

He, however, stressed the need for government officials at different levels to be agile and amenable to the dynamics of the evolving world, particularly as Nigeria attempted to successfully accelerate its human capital development aspirations.