RMAFC asks govt to review revenue allocation formula

THE Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) yesterday rose from a two-day zonal advocacy workshop on economic diversification in Minna with a call on the government to urgently review the current revenue allocation formula and principles in operation to reflect changing realities.In a communiqu issued in Minna at the end of the workshop, RMAFC also observed that in order to reduce the country's dependence on oil, there is an urgent need to diversify the nation's economic base in order to guarantee its economic prosperity.'The Nigeria economy is highly consumptive and over-dependent on oil and gas, thereby necessitating the need for urgent diversification,' the communiqu stated, stressing that 'there is the need for all tiers of government to broaden their sources of revenue in order to meet the increasing cost of governance' and infrastructure development.To this end, the workshop suggested that 'vigorous and committed internal revenue generation by states and local councils remains the key to effective financial resource mobilisation to support the expenditure of governance and development.'To achieve this, the communiqu further urged that because of the negative impact of corruption on national development, there was a serious need to fight graft, particularly in the oil and gas sector.'This can be achieved through effective revenue planning, good data base, institutional reforms, effective monitoring/supervision and international best practices in collection and remittance,' it added.The communiqu, which was signed by the chairman, diversification committee, RMAFC and five other members, urged that to revive ailing manufacturing industries in Nigeria, 'government as a matter of policy must improve infrastructural facilities especially power, roads, railway etc and provide enabling environment to promote private sector participation and attract direct foreign investment.'The commission advised the government on the need to adequately protect local industries while importation of goods that have local substitute should be restricted in order to promote domestic production and consumption of home-made goods.It, therefore, called on government to take the issue of security very seriously 'because no meaningful development take place in the atmosphere of insecurity and chaos.
Click here to read full news..